Journal of Commerce and Accounting Research

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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
     

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

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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