Journal of Commerce and Accounting Research

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Financial Stability, Profitability and Growth Analysis:A Study on Select Indian Automobile Companies


Affiliations
1 Dum Dum Motijheel Rabindra Mahavidyalaya, Kolkata, West Bengal, India
2 THK Jain College, Kolkata, West Bengal, India
     

   Subscribe/Renew Journal


The financial ratios have a vital importance in making financial decision for well-being of companies. In this paper, various solvency, profitability, liquidity and efficiency ratios are measured for analyzing the present position of India’s leading automobile companies. On the same time, by choosing five popular and well established companies, an attempt has been made to show whether the automobile industry were solvent for last six years and to what extent they are financially sound. A comparative study relating to GP, NP, ROCE and EPS of the five selected firms has been shown with analytical explanations. The study also reveals how to keep the long-term solvency position of the firms by improving their conditions after analyzing the solvency and efficiency ratios. The data has been collected from annual reports, publications, books and panel data from annual reports and various websites.

Keywords

Debt Equity, Efficiency Ratios, Liquidity Ratios, Profitability Ratios, Proprietary, Solvency Ratios, Turnover.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Azhagaiah, R., & Sankaran, P. (2014). Financial performance of automobile industry in India. International Journal of Scientific Research, 3(1). ISSN: 2277-8179.

  • Aho, T. (1980). Empirical classification of financial ratios. In C. Carlsson (Ed.), Management science in Finland (MASC 1980) Proceedings (pp. 413–421). FORS, Turku.

  • Barnes, P. (1982). Methodological implications of nonnormally distributed financial ratios. Journal of Business Finance and Accounting, 9(1), 51–62.

  • Beaver, W. (1966). Financial ratios as predictors of failure. Journal of Accounting Research, Supplement. Empirical Research in Accounting: Select Studies, 4, 71–111.

  • Bird, R. G., & McHuge, A. J. (1977). Financial ratiosan empirical study. Journal of Business Finance and Accounting, 4(1), 29–45.

  • Bliss, J.H. (1923) Financial and operating ratio in management. New York: The Ronald Press Company.

  • Daniel Moses, J. (2012). Financial status of Tata Motors Ltd. Indian Journal of Applied Research, 3(4), 320–322.

  • Fitz Patrick, P. (1932). A comparison of the ratios of successful industrial enterprises with those of failed company. The Accountants Publishing Company.

  • Foulke, R. (1945). Practical financial statement analysis. New York, NY: McGrew-Hill Book Company Inc.

  • Gilman, S. (1925). Analyzing financial statements. New York, NY: The Ronald Press Company.

  • Gombola, M. J., & Ketz, J. E. (1983). A note on cash flow and classification patterns of financial ratios. Accounting Reviews, 58(1), 105–114.

  • Libby, R. (1975). Accounting ratios and prediction of failure some behavioral evidence. Journal of Accounting Research, 13(1), 150–161.

  • Martikainen, T. (1993). Stock returns and classification pattern of firm-specific financial variables, empirical evidence with finished data. Journal of Business Finance and Accounting, 20(4), 537–557.

  • Patel, V. (2010). Financial Performance of Tata Motors, 8(1).

  • Ramser, J., & Foster, L. (1931). A demonstration of ratio analysis. Bulletin No. 40. Urbana 3, Bureau of Business Research.

  • Rana, V. S. (2013). Performance evaluation of Maruti Suzuki India limited. Asia Pacific Journal of Marketing & Management Review, 2(2), ISSN: 2319-2836. Retrieved from Indianresearchjournals.com

  • Ray, S. (2012). An insight into the performance of Indian automobile industry. Science Education Development Institute, 2(5), 191–197. Printed in Nigeria ISSN: 2276-6715.

  • Sorter, G., & Becker, S. (1964). Accounting and financial decisions and corporate personality: Some preliminary findings. Journal of Accounting Research.

  • Tariq, S. M. (2012). A comparative evaluation of financial performance of Maruti and Tata company. Bookman International Journal of Accounts, Economics & Business Management, 1(1). ISSN No: 2319-426x © Bookman International Journals.


Abstract Views: 273

PDF Views: 0




  • Financial Stability, Profitability and Growth Analysis:A Study on Select Indian Automobile Companies

Abstract Views: 273  |  PDF Views: 0

Authors

Diptendu Simlai
Dum Dum Motijheel Rabindra Mahavidyalaya, Kolkata, West Bengal, India
Manish Guha
THK Jain College, Kolkata, West Bengal, India

Abstract


The financial ratios have a vital importance in making financial decision for well-being of companies. In this paper, various solvency, profitability, liquidity and efficiency ratios are measured for analyzing the present position of India’s leading automobile companies. On the same time, by choosing five popular and well established companies, an attempt has been made to show whether the automobile industry were solvent for last six years and to what extent they are financially sound. A comparative study relating to GP, NP, ROCE and EPS of the five selected firms has been shown with analytical explanations. The study also reveals how to keep the long-term solvency position of the firms by improving their conditions after analyzing the solvency and efficiency ratios. The data has been collected from annual reports, publications, books and panel data from annual reports and various websites.

Keywords


Debt Equity, Efficiency Ratios, Liquidity Ratios, Profitability Ratios, Proprietary, Solvency Ratios, Turnover.

References