CONCLUSION

CURRENT RATIO:Company

2014

2013

Maruti

1.75

1.62

TATA Motors

0.35

0.48

Mahindra Automotives

1.016

1.187

Current Ratio measures a company's ability to pay short-term and long-term obligations or in
other words whether the company has amount to pay off its liabilities. The higher the current
ratio, the more capable the company is of paying its obligations, as it has a larger proportion of
asset value relative to the value of its liabilities. By comparing all the current ratio we see
Maruti has the highest ratio followed by Mahindra Automotives then TATA Motors.

QUICK RATIO:Company

2014

2013

Maruti

1.54

1.35

TATA Motors

0.169

0.3009

Mahindra Automotives

0.733

0.781

The quick ratio measures a companys ability to meet its short-term obligations with its most
liquid assets. The quick ratio is more conservative than the current ratio because it excludes
inventories from current assets. The higher the quick ratio, the better the company's liquidity
position.

INVENTORY TURNOVER:Company
Maruti
TATA Motors
Mahindra Automotives

2014
28.3
9.91
9.739

2013
26.14
10.51
10.569

Inventory Turnover defines the speed of the business. A ratio showing how many times a
company's inventory is sold and replaced over a period. The more the ratio better would be the

company in its sales. From the statistics Maruti has highest inventory turnover hence indicating
higher sales with TATA Motors standing at then second and Mahindra with the lowest ratio
indicating poor sales.
.

Inventory Number of day sales:Company

Maruti
TATA Motors
Mahindra Automotives

2014
13
37
41.194

2013
13.77
35
38.365

Inventory no. of day sales defines how long it took to convert the existing inventories into sales.
The shorter the time period the better it is for the company. Here Maruti hold the shortest time
period to convert the existing inventories into sales indicating higher sales and TATA Motors
with Mahindra Automotives are far behind.

Receivables Turnover:Company
Maruti
TATA Motors
Mahindra Automotives

2014
31.5
31.23
7.968

2013
30.2
25.59
10.575

Receivable number of days:Company

Maruti
TATA Motors
Mahindra Automotives

2014
11.58
12
45.806

2013
12.08
14
34.516

Receivable no. of days defines the collection period of the company. A measure of the average
number of days that a company takes to collect revenue after a sale has been made. Also called
Day sales Outstanding. A low DSO number means that it takes a company fewer days to collect
its accounts receivable. A high DSO number shows that a company is selling its product to
customers on credit and taking longer to collect money. Here Maruti retrieves its money in only
12 days also TATA Motors in 12 days but Mahindra Automotives takes in 46 days to retrieve its
money.

Company
Maruti
TATA Motors
Mahindra Automotives

2014
0.45
1.59
0.191

2013
0.44
1.72
0.147

Debt Equity:-

Debt Equity ratio or debt to equity ratio indicates the amount the outsiders have invested in the company in
accordance with the owners investment. The D/E ratio indicates how much debt a company is using to finance its
assets relative to the amount of value represented in shareholders equity.
1. Maruti: for every 1/- that the owner has invested, outsider has invested 45 paisa.
2. Tata Motors: for every 1/- that the owner has invested, outsider has invested 1.59 Rupees.
3. Mahindra: for every 1/- that the owner has invested, outsider has invested 0.191 Paise.

Proprietary ratio:-

Proprietary ratio defines how much the owner has invested in the company.
1. Maruti: for every 100/- invested in the company the owner has invested 68 rupees
2. TATA Motors: for every 100/- invested in the company the owner has invested 38 rupees.
3. Mahindra: for every 100/- invested in the company the owner has invested 83 rupees.
It helps the investors know how much percentage the owner has invested in the company. Proprietary ratio for
the owners investment of 0.20 is good for the owner as if the company faces loss the owner would not be
liable to pay all the losses and would not loss much. However the investor would be resistant to invest in such
a company.

Company
Maruti
TATA Motors
Mahindra Automotives

2014
0.68
59188
0.38
2921.88
0.839
58.78

2013
0.69
50420
0.36
3796.51
0.871
70.66

EBIDTA:-

EBITDA stands for Earnings Before Interest Tax Depreciation and Amortization. It can be used to analyze and
compare profitability between companies and industries because it eliminates the effects of financing and
accounting decisions. The more EBITDA better the company. By comparing the statistics Maruti stands the highest
then followed by TATA Motors then Mahindra Automotives.

Company
Maruti
TATA Motors
Mahindra Automotives

2014
38344
851.58
30.49

2013
31808
1978.89
43.22

EBIT:-

EBIT stands Earnings before Interest Tax. An indicator of a company's profitability, calculated as revenue minus
expenses, excluding tax and interest. All profits before taking into account interest payments and income taxes. The
more EBIT better the company. By comparing the statistics Maruti stands the highest then TATA Motors then
Mahindra Automotives.

Company
Maruti
TATA Motors
Mahindra Automotives

2014
36585
1025.81
26.77

2013
29910
174.93
37.55

PBT:-

PBT stands for Profit before Tax, a measure that looks at a company's profits before the company has to pay
corporate income tax. The more PBT better the company. By comparing the statistics Maruti stands the highest then
TATA Motors then Mahindra Automotives.

Company
Maruti
TATA Motors
Mahindra Automotives

2014
27830
334.51
17.99

2013
23921
301.81
40.87

PAT:-

PAT stands for Profit after Tax, a measure that looks at a company's profits after the company has to pay corporate
income tax. The more PAT better the company. By comparing the statistics Maruti stands the highest then TATA
Motors then Mahindra Automotives