Short Term Management Performance of ACI Logistics Limited

Abstract

This report analyzes the short-term management performance of ACI Logistics Limited using data for periods of 2019-2023. Using financial metrics calculated from the company’s financial statements, the analysis examines important factors such as inventory turnover, cost recovery efficiency, and cost structure the analysis reveals progress identifies its areas for improvement, and provides valuable insights to guide future investment planning. Encouragingly, the study found improvements in inventory management. The sharp decrease in inventory turnaround time (ICP) from 2019 to 2021 reflects improved inventory conversion to sales, which could raise holding costs reduced and improved cash flow. However, the report also highlights challenges in the collections sector. The worrying increase in collections (DSOs) between 2022 and 2023 indicates a delay in collections from customers. This calls for stronger credit management systems, improved credit facilities for consumers, and possibly early payment discounts to encourage early payments. Liquidity management also emerged as an area of focus. Consistently low amounts throughout the period indicate potential fiscal constraints. The sharp increase in delayed payment terms (DPOs) between 2022 and 2023 again implies a reliance on extended payments with suppliers, which could damage relationships in the long term. To solve these cash flow problems, ACI needs to explore strategies such as better payment management negotiation with suppliers, inventory optimization to free up cash , and the ability to maintain a high level of investment.