Financial Analysis
Objective of the Assignment:
Financial Analysis is the process of identifying the financial strengths and weaknesses of the firm, by properly establishing the relationships between the items contained in balance sheet and profit and loss statements.
Ratio Analysis Financial ratio is a relationship between two accounting figures, expressed mathematically; it helps to ascertain the financial condition of the firm. In financial analysis, a ratio is compared against a bench mark for evaluating the financial position and performance of a firm. Ratio helps to summarize large quantities of financial data to make qualitative judgment about the firms financial performance. Ratios are the indicators for further investigation.
2.0 Purpose of selection:
The Automotive industry has always been a barometer for the economic strength of a Nation. There is continuous demand in the Local & International Market. Tata Motors Ltd and Maruti Suzuki Ltd. are both reputed automotive companies in India and are listed in NSE & BSE. The main purpose of selecting these two companies to understand how financial position of these two companies is affecting the economy of the country.
3.0 Introduction of Tata Motors Ltd :
Tata Motors Limited is Indias largest automobile company, with consolidated revenues of Rs. 92,519 Crores (USD 20 billion) in 2009-10. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the worlds fourth largest truck manufacturer, and the worlds second largest bus manufacturer. The companys 24,000 employees are guided by the vision to be “best in the manner in which they operate best in the products they deliver and best in their value system and ethics.” Tata Motors, the first company from Indias engineering sector to be listed in the New York Stock Exchange