243 Samiha Khan

A COMPARATIVE STUDY ON THE FINANCIAL
PERFORMANCE OF TATA MOTOTRS AND MAHINDRA &

MAHINDRA MOTORS
Research project submitted in Partial Fulfilment of the Requirement for the Degree of B.com
Honors
DEPARTMENT OF COMMERCE
BHOPAL SCHOOL OF SOCIAL SCIENCES
April 2021
Submitted by: Guided by:
Ms. Samiha Bhan Dr. Vinod Kumar Adwani
B.com Honors Assistant Professor
Department of Commerce
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CERTIFICATE
It is to certify that the work contained in the project report titled as A Comparative Study on
the Financial Performance of Tata motors and Mahindra & Mahindra motors, by Ms. Samiha
Bhan from B.com Honors, final year, has been carried out under my supervision and that this
work has not been submitted elsewhere for a degree.
Signature of Supervisor: ……………….
Name : Dr. Vinod Kumar Adwani
Department : Commerce
Bhopal School of Social Sciences
April 2021
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DECLARATION
I hereby declare that this project report entitled A Comparative Study on the Financial
Performance of Tata motors and Mahindra & Mahindra motors was carried out by me for the
degree of B.com Honors under the guidance and supervision of Dr. Vinod Kumar Adwani,
Assistant Professor of the Department of Commerce, BSSS College. The interpretations put
forth are based on my reading and understanding of the original texts and they are not
published anywhere in any form. The other books, articles and websites which I have made
use of are acknowledged at the respective place in the text. This research report is not
submitted for any other degree or diploma in any other University.
Place: Bhopal
Name of the Student: Samiha Bhan
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ACKNOWLEDGEMENT
I would like to take this opportunity to express my heartfelt appreciation and deep admiration
for my mentor XYZ, who guided me through my research study on the Financial Analysis of
the Automobile Industry (A Comparative study on the Financial performance of Tata Motors
and Mahindra & Mahindra Motors).
Throughout the project, he provided continuous encouragement, useful input, and morale
boosts, all of which contributed to its success. His suggestions have contributed significantly
to this study and have served as a guide for the entire project. Working under the outstanding
leadership of XYZ has been a wonderful and educational experience for me.
4
ABSTRACT
Financial performance is a crucial factor that determines a firm’s profitability, long term
stability, liquidity and is also an importance aspect of financial risk management. The
assessment of financial performance can be achieved by using comparative balance sheet and
profit & loss analysis, ratio analysis, trend analysis etc. Financial results may be used to assess
a company's success.
The main concern of an organization is its profitability and risk. All the financial decisions that
increase the liability will decrease the value of its company on the contrary the financial
decisions that improve the profitability would increase the company’s value.
Financial Performance research is essential to a company's success. The Financial Statement

Analysis is used to identify patterns and relationships between financial statement products.
The performance, liquidity, and solvency of a business must be evaluated by both internal
management and external consumers (for example, financial analysts, creditors, and investors
) of financial statements.
Using various financial and statistical methods, this study attempted to examine the financial
components of the two Indian-made automobiles (TATA Motors and MAHINDRA &
MAHINDRA Motors). The research is focused mainly on secondary data from financial
reports. This research project presents an analysis on short-term and long-term solvency of
both the automobile companies, followed by an evaluation of profitability and efficiency of the
companies to compare the financial ratios of the past 3 years of both the companies.
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LIST OF CONTENTS
Chapter Number Chapter Title Page Number

1 Introduction of the Topic 7
1.1 Rationale of the study 8
1.2 Indian Automobile Industry 9
1.3 Introduction to Tata Motors and Mahindra 10-12
& Mahindra Motors
1.4 Justification of the Study 13
2 Review of Literature 14
2.1 International Reviews 15-17
2.2 National Reviews 18-20
3 Research Methodology 21
3.1 Objectives of the Study 22
3.2 Research Hypothesis 22
3.3 Scope of the Study 22
3.4 Source of Data 22
3.5 Limitations of the Study 23
4 Data Analysis 24
4.1 Data Representation and Interpretation 25-49
4.2 Hypothesis Testing 49-50
5 Results & Discussions 51
5.1 Major Findings 52
5.2 Discussions and Suggestions 52
5.3 Conclusion 52
References 53-58
Annexure 59-60
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CHAPTER 1
Introduction of the Topic

1.1 Rationale of the Study
1.2 Indian Automobile Industry
1.3 Introduction to Tata Motors and Mahindra & Mahindra Motors
1.4 Justification of the Study
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CHAPTER 1
INTRODUCTION OF THE TOPIC
1.1 RATIONALE OF THE STUDY
The cornerstone of a company is finance. It is appropriately referred to as the "science of

money." Finance is crucial for the smooth operation of a company. Every business's policies,
activities, and decisions are governed by finance.
One of the most crucial facets of business is financial management. The strategic planning,
organizing, directing, and controlling of financial undertakings in an organization or institute
is referred to as financial management. Financial output is used by analysts and investors to
compare various companies in the same industry or to compare industries or sectors as a whole.
A business's risk and profitability are two key components. A company's financial performance
is typically measured by a set of ratios or percentages, however in this study, three ratio
parameters were used to calculate financial performance: solvency ratio, profitability ratio, and
efficiency ratio.
The method of examining and analyzing a company's financial statements (such as the balance
sheet or profit and loss statement) in order to obtain a better understanding of the company's
financial health and to make more informed decisions. Financial statements contain financial
data, however, to be more valuable, this data must be analyzed through financial statement
analysis. Financial analysis is a method of determining the feasibility, stability, and
profitability of a company. The financial statements represent the economic events and
activities that impact a business and that can be converted into accounting figures.
Profit is the engine that propels a company forward. Any firm or business enterprise should be
profitable enough to thrive and prosper in the long run. Profitability implies ability to make
profit from all the commercial operations of an entity, corporation, firm, or an enterprise. It
demonstrates how effectively management can benefit from using all available business
capital.
The automotive industry has a powerful multiplier effect of industrial growth because of its
forward and backward links with many main segments of the economy. Over the course of the
year, the industry has evolved, facing challenges such as transition, consolidation,
restructuring, and adapting to the new environment.
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1.2 INTRODUCTION TO THE INDUSTRY
The Indian automotive industry, which includes both automobiles and automotive parts, is one
of the country's most important drivers of economic development. It is a significant driver of
manufacturing GDP, exports, and jobs because it is closely integrated with other industrial
sectors. This industry has expanded due to its conventional strengths in casting, forging, and
precision machining, as well as fabrication (grinding, polishing, welding), cost advantages (due
to the abundance of low-cost skilled labor), and large foreign direct investment (FDI) inflows.
The automotive industry is made up of a diverse group of companies and organizations that are
involved in the design, production, manufacturing, marketing, and the sale of engine
automobiles. It is one of the world's most profitable sectors. In 2019, India was the 7th largest
commercial vehicle manufacturer and with approximately 3.99 million passenger and
commercial vehicles sold in 2019, India surpassed Germany as the world's fourth largest car
market. By 2021, India is predicted to overtake Japan as the world's third largest auto market.
The two-wheeler segment dominates the industry in terms of volume due to a rising middle
class and young population. Furthermore, the increasing interest of businesses in exploring
rural markets helped the sector to expand. India is a major auto exporter, with good export
growth prospects in the near future. In addition, multiple initiatives by the Indian government
and major vehicle manufacturers are expected to propel India to the forefront of the global two-
wheeler and four-wheeler markets by 2020.
Between financial year 2016 and 2020, domestic automotive production grew at a 2.36 percent
compound annual growth rate (CAGR), with 26.36 million vehicles produced in FY20.
Domestic car sales increased at a 1.29 percent compound annual growth rate (CAGR), with
21.55 million vehicles sold in financial year 2020.
The car industry benefits from a number of factors, including low-cost skilled labor, strong
R&D centers and low-cost steel production. The industry also offers excellent investment
opportunities as well as direct and indirect jobs to professional and unskilled workers. By 2026,
the Indian automotive industry (which includes component manufacturing) is estimated to be
worth Rs 16-18 trillion.
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1.2 INTRODUCTION TO THE COMPANY
TATA MOTORS
Table 1
TYPE Public
PARENT Tata Group
INDUSTRY Automotive
FOUNDED 1945
FOUNDER J.R.D. Tata
HEADQUARTERS Mumbai, Maharashtra, India
KEY PEOPLE Natarajan Chandrasekaran (chairman)

Guenter Butschek (CEO)
AREA SERVED Worldwide
PRODUCTS Automobiles
Luxury vehicles
Commercial vehicles
Automotive parts
Pickup trucks
SUVs
WEBSITE www.tatamotors.com
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Tata Motors Ltd. (formerly known as TELCO, which stands for Tata Engineering and
Locomotive Company) is an Indian multinational automaker headquartered in Mumbai,
Maharashtra, India and a subsidiary of Tata Group. It is the world's 17th largest automotive
manufacture company, 4th largest truck producer, and 2nd largest bus manufacturer in terms of
volume. It was also ranked 6th on Fortune India 500 list of top companies in India in 2020.
Passenger cars, trucks, vans, coaches, buses and military vehicles are among its offerings.
Established in 1945 as a locomotive maker, the company produced its first commercial vehicle
in 1954 as part of a joint venture with Daimler-Benz AG that lasted until 1969. With the
introduction of the Tata Sierra in 1991, Tata Motors became the first Indian manufacturer to
demonstrate the capability of producing a successful indigenous vehicle.
Tata Motors, India's largest automotive firm and part of the USD 113 billion Tata Group,
operates in South Korea, Thailand, United Kingdom, Indonesia and South Africa through a
broad global network of 76 subsidiary and associate firms, including Jaguar Land Rover in the
United Kingdom and Tata Daewoo in South Korea.
MAHINDRA & MAHINDRA MOTORS
Table 2
TYPE Public
PARENT Mahindra Group
INDUSTRY Automotive
FOUNDED 2 October 1945, Jassowal, Ludhiana, Punjab, India
FOUNDERS J.C. Mahindra

K.C. Mahindra
M.G. Muhammad
HEADQUARTERS Mumbai, Maharashtra, India
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KEY PEOPLE Anand Mahindra (chairman)
Pawan Kumar Goenka (MD) & (CEO)
AREA SERVED Worldwide
PRODUCTS Automobiles
Commercial vehicles
Motorcycles
WEBSITE www.auto.mahindra.com
Mahindra & Mahindra Ltd. (M&M) is an Indian car manufacturer. It is one of India's largest
automotive producers and also the largest tractor maker in the world. Mahindra & Mahindra
was ranked 17th on Fortune India 500 of top company’s list in India in 2020. Maruti Suzuki
and Tata Motors are two of its biggest rivals in India.
Mahindra & Mahindra was founded in 1945 in Ludhiana as Mahindra & Mohammed by
brothers K.C. Mahindra and J.C. Mahindra and Malik Ghulam Mohammed as a steel trading
firm. Mohammed moved to Pakistan after India gained independence and the formation of
Pakistan. In 1948, Mahindra & Mahindra became the company's new name.
It saw a business chance in venturing into assembling and selling bigger MUVs beginning with
the assembly of military vehicle, commencing in 1947 with Willys Jeep under license in India.
The business began as India's Jeep manufacturers and later expanded to include the production
of light commercial vehicles (LCVs) and agricultural tractors. With its flagship UV Scorpio,
Mahindra & Mahindra has established itself as a major player in the utility vehicle
manufacturing and branding sectors of the Indian automotive industry.
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1.4 JUSTIFICATION OF THE TOPIC
This study will help the corporate leaders to steer their company in the right direction by
tracking financial results over several years. Monitoring key parts of the balance sheet and
income statement will help ensure company's financial ability to achieve its operational goals.
Otherwise, a business could run out of cash and default on its debts.
Investors may use ratio analysis to examine a company's financial statements in terms of risk,
solvency, profitability and how well it performs. Ratios are often used by investors to compare
companies within an industry.
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CHAPTER 2
Review of Literature
2.1 International Reviews
2.2 National Reviews
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CHAPTER 2
REVIEW OF LITERATURE
2.1 INTERNATIONAL REVIEWS
1. Ika, Siti Rochmah & Abdullah, Norhayati. (2011). A COMPARATIVE STUDY OF

FINANCIAL PERFORMANCE OF ISLAMIC BANKS AND CONVENTIONAL BANKS
IN INDONESIA.
Before and after the enactment of Indonesia's Islamic Banking Act No. 21/2008, the
paper contrasted and analyzed the financial efficiency of Islamic banks against
conventional banking. Financial performance was calculated using a variety of financial
ratios that were divided into profitability, liquidity, risk, solvency, and productivity.
Despite the significant increase in the number of total Islamic banks especially after
2000, the findings of this study show that there is no significant difference in financial
efficiency between Islamic banks and conventional banks, with the exception of
liquidity ratios as measured by the current ratio.
2. Turetken, Ozgur. (2004). Predicting Financial Performance of Publicly Traded Turkish

Firms: A Comparative Study.
The aim of this research is to use publicly accessible financial data to forecast the
financial results of publicly listed Turkish companies. The prediction accuracy of two
different techniques, multiple discriminant analysis and neural networks, is compared
for this problem. It was also discovered that both methods have better forecasts for
average and poor performers than for top performers, with no statistically significant
variations in prediction accuracy.
3. Yoon, Young-Gyu & Suh, Won-S. (2012). The Financial Performance of Hospitals
Belonging to Multi-hospital System: A Comparative Study. Health Policy and
Management.
The aim of this analysis is to compare and contrast the performance of multi-hospitals
and free-standing hospitals. This study looked at 425 acute-care hospitals in Korea and
found that multi-hospital networks and market conditions, both of which are thought to
be strengths for hospitals, have a negative impact on their financial results. The
15
disparity may be due to higher staffing and operating costs among multi-hospital
systems, implying that they are not more efficient at cost control.
4. Hada, Teodor & Bărbuţă-Mişu, Nicoleta & Căruț, Mihai & Teodora, Avram. (2017).
FINANCIAL PERFORMANCE ANALYSIS TO PUBLIC INSTITUTIONS.
The paper looks at public institutions and their unique characteristics, as well as the
idea of success in general and public institution performance in particular. In addition,
the composition of public institutions' patrimonial outcome accounts is examined, and
the patrimonial result is proposed as a performance measure for public institutions.
Finally, the paper discusses a case study involving financial performance review of a
public institution, City Hall.
5. Hosen, Md Saikat. (2018). Financial Performance Analysis of Pharmaceutical Industry

in Bangladesh.
The thesis examines the success of a pharmaceutical firm in Bangladesh. The primary
goal is to analyse the ratios of four pharmaceutical companies in Bangladesh (Beacon,
ACI, GSKSmithkline, and Square Pharmaceutical Limited). Liquidity ratios, asset
management ratios, profitability ratios, market value ratios, and debt management
ratios are all analysed, and the best performance of the four companies is determined.
6. Zhang, Xiao-Bing & Duc, Tran Phuong, Mutuc, Eugene Burgos & Tsai, Fu-Sheng.
(2021). Intellectual Capital and Financial Performance: Comparison with Financial
and Pharmaceutical Industries in Vietnam. Frontiers in Psychology.
This research explores the effects of intellectual capital on financial performance in
terms of return on assets (ROA) and return on equity (ROE) using Value-Added
Intellectual Capital (VAIC) and its components: human capital efficiency (HCE) and
systemic capital efficiency (SCE) (ROE). Furthermore, this report compares the effects
of financial and pharmaceutical companies.
7. Fardnia, Pedram & Kaspereit, Thomas & Walker, Thomas & Xu, Sizhe. (2020).
Financial performance and safety in the aviation industry. International Journal of
Managerial Finance.
The aim of this study is to see whether financial factors, which are thought to affect an
airline's maintenance, buying, and training policies, are linked to the safety performance
16
of the airline. Methodology used in this report is a series of univariate and multivariate
tests (OLS and Poisson regressions) to see whether an airline's financial well-being, and
also a country's legal and economic climate, have an effect on the airline's accident rate.
Academics and regulators who design, manage, and enforce policies aimed at
improving aviation safety on a national and supranational level should be interested in
the findings of this study.
8. Safitri, Karin & Rabbani, Muhamad & Sudjana, Ateng. (2020). An Analysis of the
Indonesian Insurance Company’s Financial Performance. International Journal of
Scientific and Research Publications (IJSRP).
The data analysis approach used in this study was quantitative methods combined with
a horizontal analysis of PT's financial information. Bhakti Bhayangkara is based on
PSAK No. 28 concerning Loss Insurance Accounting, which includes the Solvency,
Technical Ratio and Profitability Ratio, Liquidity Ratio. According to the findings of
the data review, the company's financial output is in good shape when analyzed across
multiple ratios, but there are some documents that demand attention, such as the need
for appraisal in determining prices, good claims management, and insurance contracts.
9. Muathe, Stephen. (2021). Strategic Intelligence and Financial Performance in the

Commercial Banks in Kenya.
This research sought to determine whether strategic intelligence has any impact on the
overall performance of Commercial banks in Kenya, as well as whether it could be used
to boost the banking sector's performance and support the country's economic
development. The hypothesis was tested with a P-value of 0.5. Between the years 2016
and 2018, information was acquired from the Kenyan Central Bank's annual records
and publications. In addition, the researcher used a simple linear multivariate analysis
to validate the impact of strategic intelligence on saving bank return on equity.
10. Benlamalih, Amal & Nobanee, Haitham. (2020). Financial Analysis of McDonald’s.
The information was obtained from the company's income statement and balance sheet,
which were available on Yahoo Finance, and a ratio analysis of activity, liquidity, debt,
and profitability was performed as a result. The income statement results show that the
business is profitable, but the balance sheet statistics showed that the company is
experiencing some difficulties.
17
2.2 NATIONAL REVIEWS
1. Singh, Anju & Solanki, Madhvi (2020) A Comparative Study of Financial

Performance of HDFC Bank and Bank of Baroda. This research studies the
comparison of financial performance of HDFC Bank and Bank of Baroda. The
research span is of seven years i.e., from 2013-14 to 2019-20. According to the
findings of the research, the financial efficiency of a private sector bank (HDFC
Bank) is better than that of a public sector bank (Bank of Baroda). Therefore, it can
be concluded that Bank of Baroda, in comparison to HDFC Bank, needs to
concentrate more on its policies, strengths, and weaknesses.
2. Pal, Dr. Shrabanti. (2012). COMPARATIVE STUDY OF FINANCIAL

PERFORMANCE OF INDIAN STEEL COMPANIES UNDER GLOBALIZATION.
International Journal of Accounting and Financial Management Research
(IJAFMR). The aim of this paper is to study the financial performance of Indian
steel companies and determine whether there is a linear relationship between
efficiency, liquidity, profitability and leverage. According to this report, overall
profitability is influenced by financial measures such as liquidity, profitability,
operation, and financial leverage. As a result, businesses should focus on improving
overall liquidity, solvency, and productivity in order to maximize profitability;
otherwise, the companies' profitability would be impacted in other ways.
3. Paswan, Ranjit. (2016). Financial Performance of FMCG Companies in India: A

Comparative Study. ANVESHAK-International Journal of Management. The
research work looks at the financial results of a few Indian fast-moving consumer
goods (FMCG) firms. ITC and Hindustan Unilever Limited (HUL) have been
chosen as the study's two leading FMCG firms. In terms of liquidity and
profitability, the paper empirically compares the financial results of the two firms.
Various accounting ratios and statistical methods, such as average, standard
deviation, and correlation, were used to achieve the goal.
4. Kumar, Deepak & Gulati, Neelam & Adhana, Deepak. (2020). Financial
Performance Analysis: A Comparative Study of AXIS Bank and ICICI Bank.
18
The aim of this analysis is to compare Axis Bank's and ICICI Bank's financial
results using Net Profit and various ratios such as return on equity, Total Debt to
Owners Fund ratio, capital adequacy, Total Income to Capital Employed etc. In
terms of net profit, ICICI Bank outperforms Axis Bank, but Axis Bank outperforms
ICICI Bank in terms of return on equity.
5. Bansal, Dr. Rohit. (2015). A comparative study of financial performance analysis

of selected Indian IT companies during 2010-2014. The IUP Journal of Accounting
Research & Audit Practices.
The aim of this research paper is to assess the financial and accounting performance
of leading Indian IT companies. Infosys, Tata Consultancy Services (TCS), Infosys
and Tech Mahindra's financial statements and income statements were obtained
from databases such as Money Control, Yahoo Finance etc. It is concluded that
Infosys is the most sought-after business for investors based on factors such as
return on shareholder's equity, current ratio, debtor turnover ratio, earnings per
share and, most significantly, debt equity ratio.
6. Jayawardhana, Anupa. (2016). Financial Performance Analysis of Adidas AG.

European Journal of Business and Management.
Horizontal analysis, vertical analysis, pattern analysis, and primarily ratio analysis
were used to examine financial results and recommend changes to increase finance
flow, boost dividends, and minimize liabilities. The most recent outcome is being
compared to the company's financial statements over the last five years, beginning
in 2010, to identify trends. The organization should set cost-cutting objectives,
increase employee job performance, and consider outsourcing.
7. N., Ramya. (2020). A STUDY ON FINANCIAL PERFORMANCE ANALYSIS OF

INDIAN OIL CORPORATION LIMITED.
The main goal of this study is to use methods like ratio analysis to assess the firm's
liquidity and profitability status. To determine the company's financial efficiency,
different measures such as current ratio, liquid ratio, absolute liquid ratio, net profit
ratio, gross profit ratio, operating ratio and operating profit ratio have been used.
The results are interpreted in tables for a clearer understanding of the study. This
19
analysis includes explanation, conclusions, and recommendations to help the
business enhance its performance.
8. Gupta, Shweta & Jain, Ms. (2020). A STUDY ON FINANCIAL PERFORMANCE

OF IT SECTOR IN INDIA.
The aim of this study is to examine the financial performance of Indian IT
companies in terms of liquidity, solvency, operation, and profitability. To
comprehend the risk-return trend and assess the sector's upcoming initiatives. Since
the beginning, the sector has outperformed financially, and it has also managed to
maintain average or even above average output in the face of other
economic, political adversities in the nation.
9. Monga, Reema & Aggrawal, Deepti & Singh, Jagvinder. (2021). Application of
AHP in evaluating the financial performance of industries.
This research looks at how the AHP can be used to assess the framework for
evaluating industry financial results in India. Profitability indicators, solvency
indicators, growth and efficiency indicators, and liquidity indicators are the four
metrics presented in this chapter. Certain criteria are graded, along with their sub
criteria, in this application, and the main performance indicator is chosen based on
this.
10. Suzuki, Maruti & Narayanan, Raja & Sharma, Sandhir. (2019). Financial
Performance in Maruti Suzuki. International Journal of Management and Business.
This research will examine the financial performance of the Marathi Suzuki Group,
using financial tools to determine the company's performance. Based on the
specified variables, the study focuses on the general economic situation of Maruti
Suzuki company over a particular timeframe. The study explores Maruti Suzuki
India Limited's financial status as of a five-year evaluation, as well as the associated
Profit and Loss Account.
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CHAPTER 3
Research Methodology
3.1 Objectives of the Study
3.2 Research Hypothesis
3.3 Scope of the Study
3.4 Source of Data
3.5 Limitations of the Study
21
CHAPTER 3
RESEARCH METHODOLOGY
Analytical Analysis is the research approach used in this study. A number of quantitative
elements have been taken to find out the financial performance of both the companies (Tata
Motors and Mahindra & Mahindra Motors). The tools and techniques used in this report are
financial tools i.e., ratio analysis and statistical tools includes mean, standard deviation, co-
efficient of variation.
3.1 OBJECTIVE OF THE STUDY (working capital)
1. To analyze the short-term solvency position of both the companies in the past 3 years.
2. To analyze the long-term solvency position of both the companies in the past 3 years.
3. To analyze the Profitability position of both the companies in the past 3 years.
4. To analyze the efficiency of both the companies in the past 3 years.
3.2 RESEARCH HYPOTHESIS
1. To find out there is not a significant difference in the financial performance of both
the companies.
3.3 SCOPE OF THE STUDY
The purpose of this research is to look at the financial results of two Indian automakers. The
Indian automobile industry is one of the major contributors to GDP growth in the country
(Gross Domestic Product). It has evolved due to a variety of factors, including emerging
technologies, COV-19, and safety regulations. It is also known that the development of
electronic vehicles is opening a way for their production. As a result, it appears that investing
in such businesses is profitable.
3.4 SOURCE OF DATA (financial statement analysis)
Analytical Analysis is the research approach used in this study. This project report represents
3 years data i.e., 2018, 2019, 2020 obtained from the annual report and analysis of other
supported financial statements of the company TATA Motors and Mahindra & Mahindra
Motors.
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3.5 LIMITATION OF THE STUDY
There are three significant limitations in this analysis which could be fixed in further studies.
Firstly, the research is based primarily on the company’s annual reports. Secondly, the
secondary information which has been gathered through the company’s yearly report could be
somewhere fabricated. And thirdly this research is confined to three years duration.
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CHAPTER 4
Data Analysis
4.1 Data Representation and Interpretation
4.2 Hypothesis Testing
24
CHAPTER 4
4.1 DATA REPRESENTATION AND ANALYSIS
Statistics is primarily a branch of mathematics that arose from the use of quantitative
techniques. Analysts and investors in finance gather information about firms, markets,
expectations, and volume data. In this study some statistical tools have been used to determine
the financial position of both the companies (i.e., Tata Motors and Mahindra & Mahindra
Motors). For this mean, standard deviation, coefficient of variation, growth and annual growth
has been calculated for each ratio and presented in a tabular form for better understanding of
the data.
1. MEAN
The arithmetic mean is calculated by multiplying the sum of a group of numbers by the
number of numbers in the sequence. The mean can be used to evaluate the success of
an investment or business over time, among other things. The sum of all values in a set
of numbers separated by the number of numbers in the collection is the arithmetic mean.
Mean= x1+x2+…. +xn /n
2. STANDARD DEVIATION
Standard deviation is one of the most widely used tools for assessing the risk of an
investment. The standard deviation is used to calculate market volatility, or the
difference between asset prices and their average price.
As rates fluctuate wildly, the standard deviation is high, indicating that the investment
is risky. Low standard deviation indicates that prices are stable, implying that
investments are low-risk.
Standard deviation= √∑(X-X1) ² / n-1
3. COEFFICIENT OF VARIATION
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The coefficient of variation (CV) is a statistical indicator of data point dispersion around
the mean in a data sequence. The coefficient of variance is a useful metric for measuring
the degree of variation between two data sets, even though the means are significantly
different. It describes the ratio of the standard deviation to the mean. The coefficient of
variance is a financial concept that helps investors to assess how much uncertainty, or
risk, is assumed in relation to the anticipated return on investments. The higher the risk-
return trade-off, the lower the ratio of standard deviation to mean return.
Coefficient of variation= standard deviation/ mean
To analyze the short-term solvency position
The ease with which cash can be acquired to pay bills and other short-term commitments is
referred to as liquidity. Liquid assets include those that can be traded quickly, such as stocks
and bonds, while cash is by far the most liquid of all.
A liquidity ratio is a form of financial ratio that is used to assess a company's ability to meet
short-term debt obligations. The metric is used to calculate whether a company's existing assets,
or liquid assets, will cover its current liabilities.
1. CURRENT RATIO
The current ratio is a widely used business indicator for evaluating a company's short-
term liquidity in relation to available assets and pending liabilities. To put it another
way, it measures a company's ability to raise enough cash to pay off all of its obligations
as they become due. It's a metric that's used all over the world to assess a company's
overall financial health.
The current ratio is measured using two basic measures found on a company's balance
sheet that it publishes in its quarterly and annual financial results: current assets and
current liabilities. Cash, accounts receivable, inventory, and other current assets that are
scheduled to be liquidated or converted into cash in less than one year are listed as
current assets on a company's balance sheet. Accounts payable, salaries, taxes payable,
26
short-term debts, and the present part of long-term debt are all examples of current
liabilities.
The greater the ratio, the more liquid the company. The most common reasonable
current ratio is 2, which is a good financial condition for most businesses.
Low current ratio values (less than 1) mean that a company will have trouble meeting
its current obligations. However, in order to get a better understanding of a company's
liquidity, an analyst should look at its operating cash flow. A high operating cash flow
may also sustain a low current ratio.
If the current ratio is too high (greater than 2), the organization may not be effectively
using its current assets or short-term lending facilities. This may also be a sign of an
issue with working capital management.
Current ratio= Current assets/ Current liabilities
Table 3
YEARS TATA MOTORS MAHINDRA & MAHINDRA
2018 0.95 1.20
2019 0.85 1.18
2020 0.85 1.19
Table 4
TATA MOTORS MAHINDRA &

MAHINDRA
MEAN 0.88 1.19
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STANDARD DEVIATION 0.05 0.01
COEFFICIENT OF
VARIATION (%) 6.53 0.84
GROWTH -10.52 -0.83
ANNUAL GROWTH -3.50 -0.27
2. QUICK RATIO
The quick ratio is a measure of a company's ability to fulfil short-term obligations with
its most liquid assets and is an indication of a company's short-term liquidity status. It's
also known as the acid test ratio because it shows a company's ability to pay down
current liabilities rapidly using near-cash assets (assets that can be converted quickly to
cash).
A good liquidity ratio is regarded as an indication of an organization's competence, as

it ensures healthy business performance and, as a result, can contribute to long-term
growth. Lenders, vendors, and investors use the quick ratio to see if a business has
enough liquid assets to cover its short-term obligations.
The ideal quick ratio is 1:1, which means that the firm has enough assets in its hands
that can be liquidated immediately to pay off current liabilities.
If the quick ratio is less than one, the firm will not be able to pay off any of its existing
liabilities in the short term. If the ratio is greater than one, the company holds enough
liquid assets to pay off its current liabilities right away.
Quick Ratio= Liquid assets/ Quick liabilities
28
QR= Cash and cash equivalents + marketable securities + accounts receivable/
Current liabilities
QR= Current assts – inventory – prepaid expenses/ Current liabilities
Table 5
2018 0.66 1.01
2019 0.58 0.97
2020 0.58 0.98
Table 6

MAHINDRA
MEAN 0.60 0.98

COEFFICIENT OF
VARIATION (%) 7.61 2.10
GROWTH -12.12 -2.97
29
Graph 1
LIQUIDITY RATIOS
1.4
1.19
1.2
0.98
1
0.88
0.8
0.6
0.6
0.4
0.2
0
TATA Motors M&M Motors
current ratio quick ratio
Current Ratio: M&M's operating cycle performance, or its ability to convert

output into cash, is higher than Tata Motors. Tata Motors could face cash flow
problems if its receivables aren't paid on time, or if its inventory turnover is too
high.
Quick Ratio: M&M's capacity to meet short-term liabilities with short-term
assets is greater than Tata Motors.
To analyze the long-term solvency position
A leverage ratio is one of many performance parameters that examines how much capital
comes from debt (loans) and evaluates a company's ability to fulfil its financial obligations.
The leverage ratio category is essential because businesses use a combination of equity and
debt to fund their operations, and understanding how much debt a company has will help decide
if it will be able to pay off its debts when they are due.
30
1. DEBT TO EQUITY RATIO
Divide a company's total liabilities by its shareholder equity to get the debt-to-equity
(D/E) ratio. The balance sheet of a company's financial statements contains these
figures. The ratio is used to determine the financial leverage of a business. In corporate
finance, the D/E ratio is a crucial measure. It's an indicator of how much a corporation
relies on debt to finance its activities rather than wholly-owned funds. In the event of a
market downturn, it represents the willingness of shareholder equity to pay all
outstanding debts.
The debt-to-equity ratio should be between 1 and 1.5. A high debt-to-equity ratio
suggests that a corporation is dependent on debt to fund its expansion. Companies that
spend a lot of money in their properties and activities have a higher debt to equity ratio.
If the debt-to-equity ratio is low, it usually means the company hasn't used debt to fund
operations.
If a company's debt interest rates are higher than its return on investment, it has a
negative debt to equity ratio. A business with a negative net worth will also have a
negative debt to equity ratio.
Debt to Equity Ratio = Total Debt / Shareholders’ Equity
Table 7
YEARS TATA MOTORS MAHINDRA &
MAHINDRA
2018 0.82 1.23
2019 1.51 1.35
31
2020 1.58 1.56
Table 8

MAHINDRA
MEAN 1.30 1.38

COEFFICIENT OF
VARIATION (%) 32.22 12.10
GROWTH 92.68 26.82
ANNUAL GROWTH 30.89 8.94
2. INTEREST COVERAGE RATIO
The interest coverage ratio is a metric that assesses a company's ability to manage its
debt. It's one of the debt ratios that can be used to assess a business's financial health.
Market analysts and investors value a high interest coverage ratio because a business
cannot prosper and may not even be able to survive unless it can pay the interest on its
current obligations to creditors.
If a company's interest coverage ratio is poor, it's more likely that it won't be able to
pay its debt, placing the company at risk of bankruptcy. To put it another way, a low-
interest coverage ratio implies that there is a small amount of profit sufficient to fund
the debt's interest cost.
32
A high ratio means that there are sufficient earnings to repay the debt, but it may also
suggest that the company is misusing the debt. For example, if a company does not
borrow enough, it will not be able to invest in new products and innovations to remain
competitive in the long run.
Interest coverage ratio= earnings before interest, taxes, depreciation and

amortization/ interest expenses
Table 9
YEARS TATA MOTORS MAHINDRA &

MAHINDRA
2018 2.96 2.65
2019 0.70 2.45
2020 -0.06 1.43
Table 10

MAHINDRA
MEAN 1.2 2.17

COEFFICIENT OF
VARIATION (%) 130.90 30.06
33
GROWTH -102.02 -46.03
ANNUAL GROWTH -34 -15.34
Graph 2
LEVERAGE RATIOS
2.5
2.17
1.5 1.38
1.3
1.2
0.5
0
debt to equity interest coverage
Debt to equity Ratio: Tata Motors' high debt/equity ratio compared to M & M
indicates that the company has been aggressive in using debt to fund its
expansion. Because of the extra interest cost, this could result in unstable
earnings.
Interest coverage Ratio: Tata Motors' ability to cover interest costs could be
a concern. When the interest coverage ratio is one, Tata Motors will only pay
the interest and not the principle to the lender. M&M, on the contrary, indicated
that the company could comfortably cover interest costs.
34
To analyze the Profitability position
Analysts and investors use profitability ratios to calculate and analyze a company's ability to
produce revenue in relation to sales, balance sheet assets, operational costs, and shareholders'
equity for a given time period. They demonstrate how effectively a corporation uses its assets
to generate gain and value for its shareholders.
Most businesses strive for a higher ratio or valuation because it indicates that the company is
doing well in terms of sales, earnings, and cash flow. When analyzing the averages, they are
most useful when compared to similar companies or previous years.
1. MARGIN RATIO
At different levels of calculation, margin ratios reflect a company's ability to turn

revenue into profits. Gross profit margin, operating cost ratio, net profit margin, cash
flow margin, operating profit margin, EBITDA, EBITDAR are all examples of profit
margins.
a. GROSS PROFIT MARGIN
Gross profit margin is calculated by dividing gross profit by sales revenue. This
illustrates how much money a company makes after deducting the costs of
producing its products and services. A high gross profit margin ratio indicates
that core activities are more efficient, allowing the company to pay operating
expenses, fixed costs, dividends, and depreciation while still generating net
earnings. A low profit margin implies a high cost of products sold, which can
be caused by poor buying practices, low selling costs, low profits, strong market
competition, or ineffective sales promotion policies.
Gross profit margin = gross profit/ total revenue
Table 11
35
2018 12.02 15.04
2019 9.15 15.55
2020 8.02 14.31
Table 12

MAHINDRA
MEAN 9.73 14.96

COEFFICIENT OF
VARIATION (%) 21.19 4.16
GROWTH -33.27 -4.85
b. OPERATING PROFIT MARGIN
Operating Profit Margin measures earnings as a percentage of revenue before

deducting interest and income taxes. Companies with high operating profit
margins are better able to fund fixed costs and interest on obligations, have a
better chance of surviving an economic downturn, and can deliver lower rates
36
than their rivals with lower profit margins. Since good management can greatly
boost a company's financial performance by managing its operating costs, the
operating profit margin is often used to measure the strength of its management.
Operating profit margin = Operating income/ Total revenue
Table 13
2018 4.70 11.48
2019 1.33 11.74
2020 -0.17 9.08
Table 14

MAHINDRA
MEAN 1.95 10.76

COEFFICIENT OF
VARIATION (%) 127.68 13.62
GROWTH -96.38 -20.90
37
c. NET PROFIT MARGIN
The ratio of after-tax gains to net revenue is known as the net profit percentage.
It shows how much profit is left after all manufacturing, administration, and
finance costs have been deducted from sales and income taxes have been taken
into account. As a result, it's one of the best indicators of a company's overall
success, particularly when combined with a look at how well it manages its
working capital. It's also used to contrast a company's output to those of its
rivals.
Net Profit margin = Net Profit ⁄ Total revenue x 100
Table 15
2018 2.31 7.43
2019 -9.58 4.44
2020 -4.20 -1.43
Table 16

MAHINDRA
MEAN -3.82 3.48
38
COEFFICIENT OF
VARIATION (%) -155.72 129.52
GROWTH -281.81 -119.24
Graph 3
PROFITABILITY RATIOS
( MARGIN RATIOS)
20
14.96
15
10.76
9.73
10
5
3.48
1.95
0
-5 -3.82
GROSS PROFIT OPERATING PROFIT NET PROFIT
Gross Profit Margin/ Net Profit Margin: With a poor gross margin and a low net
profit margin, Tata Motors would have been unable to cover its operating and
other expenses, let alone invest for the future. M&M motors, on the other hand,
had a decent gross profit margin and a low net profit, despite being better than
Tata Motors, which has a negative net profit margin.
39
Operating Profit Margin: A higher operating margin means that the company is
making enough profits from operations to cover all of the expenses associated
with running that business. A healthy operating margin is one that is greater than
15% therefore M&M motors is in good position than Tata Motors.
2. RETURN RATIO
The capacity of a business to produce returns for its shareholders is expressed by return
ratios. Return on assets, return on debt, return on equity, return on income, cash return
on assets, return on retained earnings, risk-adjusted return, return on capital employed,
return on invested capital are all examples of financial returns.
a. RETURN OF ASSETS
The return on assets (ROA) is a profitability ratio that shows how much
profit a business can make from its resources. Return on assets, in other
words, tests how effective a company's management is at producing profits
from its economic capital or assets on its balance sheet. The higher the
amount return of assets, the better a company's management is at handling
its balance sheet to produce income.
ROA = Net Income / Total Assets
Table 17
2018 2.71% 5.47%
2019 -9.38% 3.25%
2020 -3.74% 0.07%
40
Table 18

MAHINDRA
MEAN -3.47 2.93

COEFFICIENT OF
VARIATION (%) -174.33 92.63
GROWTH -238 -98.72
b. RETURN ON INVESTED CAPITAL
The return on invested capital (ROIC) is a metric that calculates an

efficiency of a company in allocating its capital to productive investments.
The return on invested capital (ROIC) ratio shows how efficiently a business
uses its capital to produce income. The return on invested capital ratio can
be used to assess a company's progress. Any company that generates excess
returns on acquisitions that exceed the cost of raising capital is a value
creator and, as a result, typically trades at a premium.
ROIC = NOPAT/Invested Capital
Table 19
2018 7.36% 12.01%
41
2019 2.49% 11.75%
2020 -0.25% 7.65%
Table 20

MAHINDRA
MEAN 3.20 10.47

COEFFICIENT OF
VARIATION (%) 120.44 23.35
GROWTH -103.39 -36.30
c. RETURN ON EQUITY
The percentage of net profits relative to stockholders' equity, or the rate of

return on the capital that equity investors have put into the company, is
known as return on equity (ROE). Stock analysts and investors pay close
attention to the return on equity (ROE) ratio. A high ROE ratio is commonly
listed as a justification to buy a company's stock. Companies with a high
return on equity are more likely to be able to generate cash internally,
reducing their reliance on debt funding.
42
ROE = Net Income / Shareholders’ Equity
Table 21
2018 9.41% 20.42%
2019 -47.90% 13.29%
2020 -19.13% 0.31%
Table 22

MAHINDRA
MEAN -19.21 11.34

COEFFICIENT OF
VARIATION (%) -149.19 89.91
GROWTH -303.29 -98.48
Graph 4
43
PROFITABILITY RATIOS
(RETURN RATIOS)
15
10 11.34
10.47
3.2 2.93
0
-3.47 TATA Motors M&M Motors
-5
-10
-15
-19.21
-20
-25
return on assets return on invested capital return on equity
Return on Assets: In comparison to Tata Motors, which had a negative ROA,

M&M's average ROA indicates that earnings were produced from invested
capital (assets). M & M's assets are made up of both debt and equity. Both of
these funding options are used to finance the company's activities. M&M was
turning the money it had to in a better way, as shown by the Better ROA figure.
The Better ROA figure indicates to investors that M&M was essentially turning
the capital it had to spend into net profits. However, the lower the ROA level,
the worse it is for Tata Motors, since the company is earning less money on
more investment.
Return on Invested Capital: It indicates how much profit is produced by each

rupee of employed capital. M&M, a higher ratio is more desirable since it
ensures that each rupee of capital employed generates more rupees of benefit.
Investors in M&M are looking at the ratio to see how effectively the company
uses its resources and its long-term funding plans. The returns on the assets
44
should always be higher than the rate at which they borrow to finance them.
M&M's Return on Invested Capital, which is a long-term profitability ratio, is
higher than Tata Motors' because it demonstrates that M&M assets performed
better when long-term funding was taken into account.
Return on Equity: This ratio compares a company's net profits to its average
shareholders' equity to determine how profitable it is. The return on equity
(ROE) ratio calculates how much the company's shareholders profited from
their investment. In the case of M&M, the higher the ratio percentage, the more
effective the management is in using its equity base and the greater the return to
investors is. Tata motors shows a negative return on equity which indicates that
the company has lost money. If we see a large magnitude of value, it's possible
that the company has been losing money for a long time, as equity capital
declines with each loss.
To analyze the efficiency of the companies
An efficiency ratio assesses a company's ability to produce revenue from its properties. An
efficiency ratio, for example, can consider a variety of factors, such as the time it takes to
receive cash from consumers or the time it takes to turn inventory to cash. These ratios can be
compared to those of rivals in the same sector to classify companies that are better run than the
rest. Sales to inventory, accounts payable to sales, sales to net working capital, fixed asset
turnover stock turnover ratio are some of the most commonly used efficiency ratios.
1. ASSET TURNOVER RATIO
The asset turnover ratio compares the value of a company's assets to the value of its
sales or profits. It is a metric that measures how effectively a business uses its assets to
produce revenue. A company's ability to generate revenue from its assets is measured
by its asset turnover ratio. The higher the asset turnover ratio, the more effective it is.
A low asset turnover ratio, on the other hand, means that a business is not effectively
using its assets to produce revenue.
Asset turnover ratio = net sales / average total sales
45
Table 23
2018 88.91 67.11
2019 98.28 64.09
2020 81.04 56.99
Table 24

MAHINDRA
MEAN 89.41 62.73

COEFFICIENT OF
VARIATION (%) 0.09 0.08
GROWTH -8.85 -15.07
2. INVENTORY TURNOVER RATIO
46
Inventory turnover is a financial ratio that indicates how many times a company's
inventory has been sold and replaced in a given timeframe. The days it takes to sell
the inventory on hand can then be calculated by multiplying the number of days in
the timeframe by the inventory turnover formula.
The higher the inventory turnover, the better, since it indicates that a company sells
items quickly and that there is enough demand for its products. Low inventory
turnover is a sign of slow sales and weakening demand for a company's goods.
Inventory turnover is a metric that analysts use to assess how quickly a business
sells inventory to market averages. Low turnover indicates slow sales
and possibly surplus inventory (also known as overstocking). It may be the result
of insufficient promotion or a problem with the products being offered for sale.
Inventory Turnover Ratio = Cost of Goods Sold/ Average Inventory
Table 25
2018 6.99 9.86
2019 7.74 8.58
2020 6.97 8.57
Table 26

MAHINDRA
47
MEAN 7.23 9.00

COEFFICIENT OF
VARIATION (%) 0.06 0.08
GROWTH -0.28 -13.08
Graph 5
EFFICIENCY RATIOS
100
89.41
90
80
70
62.73
60
50
40
30
20
7.23 9
10
0
asset turnover inventory turnover
Asset Turnover: Since Tata Motors had a higher turnover ratio, it was able to
generate more revenue with less assets, indicating that the business was doing
48
well. However, M&M's lower turnover ratio indicates that the company is not
making the best use of its assets.
Inventory Turnover Ratio: Since goods deteriorate due to weak sales, Tata
Motors' low turnover was a bad sign. As a result, surplus inventory remained in
a warehouse. The high M&Ms ratio indicated good sales.
4.2 HYPOTHESIS TESTING
The Hypothesis states that there is no significant difference in the financial

performance of Tata Motors and Mahindra & Mahindra Motors.
We used a t-test on Excel to verify the above hypothesis, and the results are shown
below.
Table 27
t-Test: Two-sample assuming unequal Variable 1 Variable 2

variance Tata Motors Mahindra & Mahindra
Mean 7.416666667 10.94916667
Variance 717.7249879 289.5384265
Observations 12 12
Hypothesized Mean Difference 0
df 19
t Stat -0.385568249
P(T<=t) one-tail 0.352049676
t Critical one-tail 1.729132812
P(T<=t) two-tail 0.704099352
t Critical two-tail 2.093024054
 At 5% significance level
49
The computed t value from the above table is -0.3855 and 0.7040 is the p value. We can deduce
from these two parameters that the result is not significant at p<0.05.
The null hypothesis H0, in other words, is accepted. As a result, we can infer that there is no
significant difference in the financial output of Tata Motors and Mahindra & Mahindra Motors.
50
CHAPTER 5
RESULTS AND DISCUSSIONS

5.1 Major Findings
5.2 Conclusion
51
CHAPTER 5
RESULTS AND DISCUSSION
a. MAJOR FINDINGS
For the time span under study, there is no significant difference in the
financial results of Tata Motors and Mahindra & Mahindra Motors as the p
value is 0.7040 which is higher than the significance level 5%.
b. DISCUSSIONS AND SUGGESTIONS

At this time of lower valuations in Tata Motors, an investor can build up a
position in the company.
Mahindra & Mahindra has consistently outperformed its peers, albeit at a
slower rate of growth.
c. CONCLUSION
Based on a comparative study of the financial results of tata motors and
Mahindra & Mahindra motors, it can be inferred that M&M motors liquidity
position was high while Tata motors was weak, indicating the companies'
ability to meet short-term obligations on time. Tata motors long-term
solvency is lower, indicating that the company relied more on external funds
for long-term borrowings, resulting in a lower level of security for creditors.
The Profitability ratios of Mahindra & Mahindra Motors are higher than
those of Tata Motors. Mahindra & Mahindra Motors made a significant
profit, which is beneficial for the company.
After considering all of the factors related to this data analysis, it has led to
the big conclusion that Tata Motors output is satisfactory, but Mahindra &
Mahindra Motors maintains a strong market place. As a result, stockholders
will take risks with their investments. They will receive a healthy return,
and their investments will be safe and stable.
52
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58
ANNEXURE
TATA MOTORS
BALANCE SHEET (CONSOLIDATED)
Equities & Liabilities Mar 2020 Mar 2019 Mar 2018
Share Capital 719 679 679
Reserves & Surplus 61,491 59,500 94,748
Current Liabilities 140,454 145,457 143,219
Other Liabilities 119,456 101,557 92,703
Total Liabilities 322,121 307,194 331,350
Assets
Fixed Assets 161,952 142,370 161,330
Current Assets 119,587 123,431 135,972
Other Assets 40,581 41,392 34,046
Total Assets 322,121 307,194 331,350
Other Info
Contingent Liabilities 15,590 17,148 15,431
59
MAHINDRA & MAHINDRA MOTORS
BALANCE SHEET (CONSOLIDATED)
Equities & Liabilities Mar 2020 Mar 2019 Mar 2018
Share Capital 554 543 543
Reserves & Surplus 39,415 39,439 36,232
Current Liabilities 54,009 58,743 49,149
Other Liabilities 73,027 64,664 51,286
Total Liabilities 167,006 163,391 137,210
Assets
Fixed Assets 35,033 31,668 28,291
Current Assets 64,045 69,406 59,076
Other Assets 67,927 62,316 49,843
Total Assets 167,006 163,391 137,210
Other Info
Contingent Liabilities 8,648 9,426 7,284
60

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A COMPARATIVE STUDY ON THE FINANCIAL

PERFORMANCE OF TATA MOTOTRS AND MAHINDRA &

BHOPAL SCHOOL OF SOCIAL SCIENCES

Submitted by: Guided by:

Ms. Samiha Bhan Dr. Vinod Kumar Adwani

B.com Honors Assistant Professor

Signature of Supervisor: ……………….

Name : Dr. Vinod Kumar Adwani

Bhopal School of Social Sciences

Name of the Student: Samiha Bhan

Financial Performance research is essential to a company's success. The Financial Statement

Chapter Number Chapter Title Page Number

Introduction of the Topic

INTRODUCTION OF THE TOPIC

1.1 RATIONALE OF THE STUDY

The cornerstone of a company is finance. It is appropriately referred to as the "science of

PARENT Tata Group

FOUNDER J.R.D. Tata

HEADQUARTERS Mumbai, Maharashtra, India

KEY PEOPLE Natarajan Chandrasekaran (chairman)

AREA SERVED Worldwide

MAHINDRA & MAHINDRA MOTORS

PARENT Mahindra Group

FOUNDED 2 October 1945, Jassowal, Ludhiana, Punjab, India

FOUNDERS J.C. Mahindra

HEADQUARTERS Mumbai, Maharashtra, India

AREA SERVED Worldwide

2.2 National Reviews

2.1 INTERNATIONAL REVIEWS

1. Ika, Siti Rochmah & Abdullah, Norhayati. (2011). A COMPARATIVE STUDY OF

2. Turetken, Ozgur. (2004). Predicting Financial Performance of Publicly Traded Turkish

5. Hosen, Md Saikat. (2018). Financial Performance Analysis of Pharmaceutical Industry

9. Muathe, Stephen. (2021). Strategic Intelligence and Financial Performance in the

1. Singh, Anju & Solanki, Madhvi (2020) A Comparative Study of Financial

2. Pal, Dr. Shrabanti. (2012). COMPARATIVE STUDY OF FINANCIAL

3. Paswan, Ranjit. (2016). Financial Performance of FMCG Companies in India: A

5. Bansal, Dr. Rohit. (2015). A comparative study of financial performance analysis

6. Jayawardhana, Anupa. (2016). Financial Performance Analysis of Adidas AG.

7. N., Ramya. (2020). A STUDY ON FINANCIAL PERFORMANCE ANALYSIS OF

8. Gupta, Shweta & Jain, Ms. (2020). A STUDY ON FINANCIAL PERFORMANCE

3.2 Research Hypothesis

3.3 Scope of the Study

3.4 Source of Data

3.5 Limitations of the Study

3.1 OBJECTIVE OF THE STUDY (working capital)

3.2 RESEARCH HYPOTHESIS

3.3 SCOPE OF THE STUDY

3.4 SOURCE OF DATA (financial statement analysis)

4.2 Hypothesis Testing

4.1 DATA REPRESENTATION AND ANALYSIS

Mean= x1+x2+…. +xn /n

Standard deviation= √∑(X-X1) ² / n-1

Coefficient of variation= standard deviation/ mean

To analyze the short-term solvency position

Current ratio= Current assets/ Current liabilities

YEARS TATA MOTORS MAHINDRA & MAHINDRA

2018 0.95 1.20

2019 0.85 1.18

2020 0.85 1.19

TATA MOTORS MAHINDRA &

MEAN 0.88 1.19

GROWTH -10.52 -0.83

ANNUAL GROWTH -3.50 -0.27

A good liquidity ratio is regarded as an indication of an organization's competence, as