Automobile Industry Presentation

  • View
    224

  • Download
    0

Embed Size (px)

Text of Automobile Industry Presentation

  • 8/12/2019 Automobile Industry Presentation

    1/25

    A STUDY ON FINANCIAL PERFORMANCE OFSELECTED AUTOMOBILE COMPANIES

    S.JA

    IInd

  • 8/12/2019 Automobile Industry Presentation

    2/25

    INTRODUCTION

    Financial Performance is a subjective measure of how

    firm can use assets from its primary mode of business and generate rev

    Financial decisions which increase risks will decrease the value of th

    and on the other hand, financial decisions which increase the profitabili

    increase value of the firm. Risk and profitability are two essential ingre

    of a business concern. There has been a considerable debate abo

    ultimate objective of firm performance, whether it is profit maximizat

    wealth maximization .

  • 8/12/2019 Automobile Industry Presentation

    3/25

    MEANING

    1.Finance is the allocation of assets and liabilities over time under conditio

    certainty and uncertainty. A key point in finance is the time value of money, w

    states that a unit of currency today is worth more than the same unit of cur

    tomorrow.

    2. Finance aims to price assets based on their risk level, and expected rate of re

    Finance can be broken into three different sub categories: public finance, corpfinance and personal finance.

  • 8/12/2019 Automobile Industry Presentation

    4/25

    IMPORTANCE OF FINANCE

    1. It helps in obtaining sufficient funds at a minimum cost.

    2. It tries to generate sufficient profits to finance expansion

    modernization of the enterprise and secure stable growth.

    3. It also ensures safety of funds through creation of res

    investment of profit, etc.

  • 8/12/2019 Automobile Industry Presentation

    5/25

    Uses of Financial Management

    1. Anticipating financial needs.2. Acquiring financial resources.3. Allocating funds in Business.4. Administrating the allocation of funds.5. Analyzing the performance of finance.6. Accounting and Reporting to management.

  • 8/12/2019 Automobile Industry Presentation

    6/25

    Need of the Study

    1. Financial analysis is the powerful mechanism which helps in ascertaining t

    strengths and weakness in the operation and financial position of an enterp

    2. Financial statement analysis is largely a study of the relationship among th

    various financial factors in a business as disclosed by a single set statemen

    a study of the trend of these factors as shows in a series of statement.

    3. Financial analysis is the process of identifying the financial strengths and

    weakness of the firm by properly establishing relationship between the item

    the balance sheet and the profit and loss accounts.

  • 8/12/2019 Automobile Industry Presentation

    7/25

    Limitation of the study

    Time was one of the limitations of this study. Because of the

    of time the analysis is based on the secondary data collected from

    balance sheet, profit and loss accounts and other records from

    organization.

  • 8/12/2019 Automobile Industry Presentation

    8/25

    Review of Literature

    1. The study was intended to probe into the financial condition-financial

    and weakness-of the Indian Auto-mobile industry.

    2. An attempt has been made in this study to analyze the important v

    Automobile industry and projected future trends regarding sales and pro

    next 10 year periods, with a view to help the policy makers to take

    decisions .

    3. It is conceptualized that sustained growth, adequate liquidity an

    profitability in the SME sector is significantly related to their inve

    financing decisions.

  • 8/12/2019 Automobile Industry Presentation

    9/25

    RESEARCH METHODOLOGY 1.RESEARCH

    Research is a process in which the researcher wishes to find out

    end result for a given problem and thus the solution helps in fucourse of action2.RESEARCH DESIGN

    The research design used in this project is Analytical in nature

    procedure using, which researcher has to use facts or informaalready available, and analyze these to make a critical evaluation of

    performance.

  • 8/12/2019 Automobile Industry Presentation

    10/25

    3.OBJECTIVES OF THE STUDY

    To analyse the liquidity position of selected companies.

    To analyse the profitability position of the leverage selected

    companies.

    To analyse the leverage position of the selected companies.

    To analyse the turnover position of the selected companies

  • 8/12/2019 Automobile Industry Presentation

    11/25

    4.Scope of the study

    The scope of the study is to analyse the financial performance of t

    company. Automobile industry and also ascertain the development of

    financial position of the company.

    5. Limitations of the study

    The time duration of the study is limited.The financial statement and annual reports are taken into

    consideration

  • 8/12/2019 Automobile Industry Presentation

    12/25

    RATIO ANALYSIS

    Ratio analysis is an accounting tool, which can be used to meas

    the solvency, the profitability, and the overall financial strength o

    business, by analyzing its financial accounts Accounting ratios are v

    easy to calculate and they enable a business to highlight which areas

    its finances are weak and therefore require immediate attention

  • 8/12/2019 Automobile Industry Presentation

    13/25

    1.LIQUIDITY RATIO

    1. Current RatioCurrent ratio=Current Assets/Current Liabilities .

    2. Quick RatioQuick Ratio = Current Assets - Inventories/Current Liabilities.

    3. Cash RatioCash Ratio =Cash and Cash Equivalents / Current Liabilitie

    4.Net Working Capital Networking Capital = Current Assets Current Liabilities

  • 8/12/2019 Automobile Industry Presentation

    14/25

    4.Net Working Capital

    Net Working Capital=Current Assets Current Liabilities

  • 8/12/2019 Automobile Industry Presentation

    15/25

    Suggestions

    The companies may use debt so that may attract the shareholders. Because of

    liquidity position, so it can meet out its immediate obligations.

  • 8/12/2019 Automobile Industry Presentation

    16/25

    CURRENT RATIO COMPANY NAME YEAR CURRENT ASSETS CURRENT LIABILITIES CURRENT RATIO

    ASHOK LEYLAND

    2008-2009 2374.91 2207.29 1.075

    2009-2010 2849.22 3002.68 0.948

    2010-2011 3573.64 3505.26 1.019

    2011-2012 3493.56 4837.41 0.722

    2012-2013 3329.37 4749.58 0.701

    BAJAJ AUTO

    2008-2009 833.17 1378.20 0.604

    2009-2010 819.25 2218.06 0.369

    2010-2011 1065.49 2624.35 0.406

    2011-2012 1548.22 2925.53 0.529

    2012-2013 1195.14 668.22 1.788

    HERO MOTORCORP

    2008-2009 694.26 1678.93 0.413

    2009-2010 2408.27 3965.69 0.607

    2010-2011 703.27 5316.40 0.132

    2011-2012 1003.98 3520.66 0.285

    2012-2013 1482.80 2893.39 0.512

    TATA MOTORS

    2008-2009 4423.18 10968.95 0.403

    2009-2010 5939.67 16909.30 0.351

    2010-2011 8923.19 16271.85 0.548

    2011-2012 9137.51 20280.82 0.450

    2012-2013 6753.93 16580.47 0.407

    TVS MOTORS

    2008-2009 544.11 776.08 0.701

    2009-2010 549.78 838.62 0.655

    2010-2011 804.48 1047.94 0.767

    2011-2012 831.66 1149.47 0.723

    2012-2013 827.63 1242.15 0.666

  • 8/12/2019 Automobile Industry Presentation

    17/25

    CHART

  • 8/12/2019 Automobile Industry Presentation

    18/25

    LEVERAGE RATIO

    1. Debt Equity RatioDebt Equity Ratio = Total Debt/ Net Worth.

    2.Debt RatioDebt Ratio = Total Debt/ Total Assets.

    Suggestions

  • 8/12/2019 Automobile Industry Presentation

    19/25

    Suggestions

    Debt Ratio

    COMPANY NAME YEAR TOTAL DEBT TOTAL ASSETS DEBT RATIO

    ASHOK LEYLAND

    2008-2009 1961.98 5435.87 0.360

    2009-2010 2280.45 5936.76 0.384

    2010-2011 2658.19 6621.14 0.401

    2011-2012 2395.53 6607.32 0.362

    2012-2013 3504.82 7959.92 0.440

    BAJAJ AUTO

    2008-2009 1570.00 3439.69 0.456

    2009-2010 1338.58 4266.92 0.313

    2010-2011 325.15 5235.37 0.062

    2011-2012 97.48 6138.55 0.015

    2012-2013 71.27 9300.35 0.007

    HERO MOTORCORP

    2008-2009 78.49 3879.24 0.020

    2009-2010 66.03 3531.05 0.018

    2010-2011 1491.16 4447.22 0.335

    2011-2012 994.85 5284.68 0.188

    2012-2013 302.16 5308.40 0.056

    TATA MOTORS

    2008-2009 13165.56 25559.83 0.515

    2009-2010 16625.91 31429.69 0.528

    2010-2011 14638.19 34651.49 0.422

    2011-2012 11011.63 30637.64 0.359

    2012-2013 14268.69 33403.53 0.427

    TVS MOTORS

    2008-2009 905.98 1719.11 0.527

    2009-2010 1003.29 1868.67 0.536

    2010-2011 785.42 1784.83 0.440

    2011-2012 715.46 1884.76 0.379

    2012-2013 545.86 1770.53 0.308

  • 8/12/2019 Automobile Industry Presentation

    20/25

    CHART

    TURN OVER RATIO

  • 8/12/2019 Automobile Industry Presentation

    21/25

    TURN OVER RATIO

    1. Fixed Assets Turnover RatioFixed Assets Turnover Ratio= Sales/Fixed Assets.

    2. Current Assets Turnover RatioCurrent Assets Turnover Ratio = Net Sales / Current

  • 8/12/2019 Automobile Industry Presentation

    22/25

    Suggestions

    The turnover ratio is decreasing .

    FIXED ASSETS TURNOVER RATIOCOMPANY NA