RATIO ANALYSIS OF TATA

MOTORS LTD. FOR THE

PERIOD 2014-18: A
PERSPECTIVE OF
PROFITABILITY AND
LIQUIDITY
PRESENTED BY:

S.TANIYA
SACHIN
SHUBENDU
VIJAYA
ABHISHEK
HRITHIK
 WHAT IS RATIO ANALYSIS?

Ratio analysis is the process of examining

and comparing financial information by
calculating meaningful financial statement
figure percentages instead of comparing line
items from each financial statement.
 RATIO ANALYSIS

LIQUIDITY LEVERAGE ACTIVITY PROFITABILIT

RATIO RATIO RATIO Y RATIO

They These ratios These ratios

show the They reflect measure
measure the
proportion of the firm’s overall
firm’s ability
debt and efficiency in performance
to meet equity in &
utilizing the
current financing the effectiveness
assets.
obligation firm's asset of the firm
ABOUT TATA MOTORS

 Tata Motors Limited is a leading global automobile manufacturer of cars, utility

vehicles, buses, trucks and defense vehicles.

 As India's largest automobile company and part of the USD 100 billion Tata group,
Tata Motors has operations in the UK, South Korea, Thailand, South Africa, and
Indonesia through a strong global network of 76 subsidiary and associate
companies, including Jaguar Land Rover in the UK and Tata Daewoo in South
Korea.

 In India, Tata Motors is a market leader in commercial vehicles and among the top
passenger vehicles manufacturers with 9 million vehicles on Indian roads.
 PROFITABILITY
RATIO OF THE TATA
MOTORS FOR THE
PERIOD 2014-2018
 LIQUIDITY RATIO OF THE TATA
MOTORS FOR THE PERIOD 2014-2018

LIQUIDITY 2014 2015 2016 2017 2018

RATIO

CURRENT 0.36 0.42 0.63 0.59 0.62

RATIO

QUICK 0.15 0.19 0.36 0.33 0.38

RATIO
0.7

0.6

0.5

0.4
CURRENT RATIO
0.3 QUICK RATIO

0.2

0.1

0
2014 2015 2016 2017 2018
PROFITABILITY RATIO OF THE TATA
MOTORS FOR THE PERIOD 2014-2018
PROFITABILI 2014 2015 2016 2017 2018
TY RATIO

PBDIT 8.52 1.77 10.15 5.84 8.27

Margin

Net Profit 0.97 -13.05 -0.14 -5.48 -1.75

Margin

Return on 1.74 -31.93 -0.26 -11.48 -5.13

Net worth /
Equity
Return on 2.75 -16.02 5.31 -1.19 5.04
Capital
Employed
Return on 0.67 -9.48 -0.10 -4.12 -1.74
Assets
 Profitability Ratios
15
10
5
0
-5
In cr.

-10
-15
-20
-25
-30
-35
Return on Return on
PBDIT Net Profit Return on
Networth/ Capital
Margin Margin Assets
Equity Employed
2014 8.52 0.97 1.74 2.75 0.67
2015 1.77 -13.05 -31.93 -16.02 -9.48
2016 10.15 -0.14 -0.26 5.31 -0.1
2017 5.84 -5.48 -11.48 -1.19 -4.12
2018 8.27 -1.75 -5.13 5.04 -1.74