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Ratio Analysis of TATA MOTORS
Ratio Analysis of TATA MOTORS
ON RATIO COMPARISON OF
TATA MOTORS FOR 2007 AND 2008.
Submitted to:
K.L. Chawla
Head, Department of Finance
INMANTEC
Submitted By
Kamal Kant Soni @ PG-08-36
Esha Raj @ PG-08-29
Chitrangda Jaiswal @ PG-08-27
(2007)
323,612.0
19.6
325,143.8
234,753.6
90,390.2
30,811.0
850.2
6,880.9
17,508.5
56,050.6
34,339.6
-4,650.6
592.5
-4,058.1
394.2
652.1
-1.4
31,326.4
--52.2
31,274.2
8,832.1
-742.2
21,699.9
21,699.9
1,103.6
-37.0
31,514.9
8,515.4
-1,322.5
21,677.0
21,677.0
(2007)
(2008)
(currency in millions Rs.)
11,542.7
38,331.7
11,542.7
38,331.7
17,022.2
20,605.1
84,553.
76,938.9
62.7
11.9
101,638.5
97,555.9
31,669.0
32,946.4
1,247.3
3,334.8
16,681.7
20,504.7
162,779.2
192,673.5
129,408.3
182,484.4
-54,266.5
-57,652.4
75,141.8
124,832.0
4,430.1
5,661.6
11,745.9
26,658.3
119.3
2,442.1
-1,429.6
-254,216.3
353,697.1
48,723.3
4,704.9
34,325.
1,084.2
38,789.2
6.7
127,633.7
38,693.6
-2,499.6
8,172.7
176,999.6
3,853.6
19,364.0
44,087.8
9,911.3
77,216.7
254,216.3
67,832.8
5,389.3
52,503.2
901.4
62,104.1
218.0
188,948.8
63,345.5
-4,683.1
9,744.5
266,721.9
3,854.9
15,372.2
58,523.7
9,224.4
86,975.2
353,697.1
Liquidity ratio
Current ratio = Current assets / Current liability
2008
2007
Current Assets
192,673.5
162,779.2
Current Liability
188,948.8
127,633.7
For 2008Avg. daily cash oper. Exp Interval measure For 2007
Avg. daily cash oper. Exp Interval measure -
Leverage Ratio
Total debt ratio
For 2008
Total debt
Capital employed Or
For 2007
Total debt
Capital employed -
63,345.5
Net worth + borrowing
Share capital + debt.
86,975.2+ 63,345.5= 150320.7
63,345.5 / 150320.7 = .42
38,693.6
77,216.7 + 38,693.6= 115910.3
(shr. cap) (debt)
38,693.6 / 115910.3 = .33
-
For 2008
For 2007
Capital equity ratio For 2008
For 2007
2008
30,448.3
9,127.2
39575.5
For 2008
For 2007
2007
31,326.4
4,650.6
35977
In 2008, the long term financial position getting strong than 2008. Capability of
paying long term debt. is increases. As we seen, debt ratio increases. And the
contribution of debt is increases in 2008 than 2007. and the part of share capital is
also increases in total capital employed than 2007. it means, company is increasing
its capital through shares.
Activity Ratio
Inventory Turnover Ratio:- Cost of goods sold / Inventory
(2008)
254,571.5
32,946.4
(2007)
234,753.6
31,669.0
For 2008:-
254,571.5 / 32,946.4
7.72
For 2007 :-
234,753.6 / 31,669.0
7.41
3.67
For 2007 :-
3.20
98 days
112 days
2.38
For 2007 :-
2.80
For 2008 :-
For 2007 :-
Profitability Ratio
Gross Margin
EBIT Ratio
PAT / EBIT
For 2008
For 2007
=
=
21,677.0 / 37878.9
21,699.9 / 35384.5
=
=
=
=
Return on investment
For 2008
For 2007
Return on equity
For 2008
For 2007
= .57
= .61
In profitability ratio, the gross profit ratio is increasing in 2008 than 2007. it
means its profit is growing in sales. But companys EBIT ratio is decreasing means
interest on capital and tax rate is increased in 2008 than 2007 which is responsible
in decreasing its PAT. And companys return on investment is decreased that
indicates that its earning on capital employed is decreased in 2008 than 2007. and
its ROE is also decreases means its PAT on its share capital is decreased.