ipl-logo

Fundamental Analysis: Tata Motors

1702 Words7 Pages

4.1 Analysis and Interpretation Fundamental analysis Tools: These are the most popular tools of fundamental analysis. They focus on earnings, growth, and value in the market. 1. Current Ratio 2. Debt to Equity Ratio 3. Return on capital employed 4. Earnings per share 5. Gross profit margin Ratio 6. Net profit margin Ratio 1) Current ratio : It is a very popular ratio; it measures the company’s ability to pay short-term obligations. The idle current ratio preference is 2:1. The current ratio is defined as : = Current Assets/ Current Liabilities Table showing Current Ratios Name of the companies Mar '14 Mar '13 Mar '12 Tata Motors 0.43 0.42 0.5 Mahindra & Mahindra 1.19 1.02 0.99 Maruthi Suzuki 0.77 1.04 …show more content…

4) Earnings per Share: Earnings per share serve as indicator of a company’s profitability in a reported period. For all practical purposes it is advised to consider last EPS = Net earnings/No of Equity shareholders Table showing EPS ratio Name of the companies Mar '14 Mar '13 Mar '12 Tata Motors 1.04 0.95 3.91 Mahindra & Mahindra 61.02 54.61 46.89 Maruthi Suzuki 92.13 79.19 56.6 Hero MotoCorp 105.62 106.07 119.09 Bajaj Auto 112.08 105.18 103.81 (Source: Company annual reports of 2012-13 & 2014-15 Table No: 2.4) Graph No: 2.4 Interpretation: The book value of Maruti Suzuki India Ltd has 18% and M& M has 9% growth of EPS from year to year; it indicates that growth in the EPS of the company, whereas Tata motor’s ratio of EPS is very low that is -36%, so there is a need of improving its performance and increase the return to its shareholders otherwise it affects to the company. 5) Gross Profit Margin Ratio: Gross profit margin measures company 's manufacturing and distribution efficiency during the production process. It is a measurement of how much from each dollar of a company 's revenue is available to cover overhead, other expenses and profits. It is calculated as: = Sales-cost of

Show More
Related

  • Dollarama Company Case

    990 Words  | 4 Pages

    The debt to ratio is a ratio that compares a firms total liabilities and shareholders’ equity. It shows the proportion of the amount of money invested by the business owners as well as external entities. Debt to Equity Ratio = Total Liabilities/Shareholders’ Equity = $80,994/$931,490

    Read More

  • Holy The Firm Analysis

    906 Words  | 4 Pages

    Speaker The speaker is Annie Dillard, who is also the author of the book. In Holy the Firm, the author expresses her thoughts in regard to questions such as the reason that humans are created by God; the meaning and essence of God’s work; and the relationship between the believers and God. Dillard encounters great conflicts in her belief in God when she saw that a girl in her neighbour’s farm was burned by a plane crash. She starts to question whether every act of God has any real meaning in it and if it does, why would God let a innocent girl be burned by excruciating fire at such a young age when she has done nothing wrong. She even wonders if God is just a powerless creator who has no power to save those who suffer from atrocities.

    Read More

  • Finance Case Study: The Wilkerson Company

    895 Words  | 4 Pages

    The last product that this company produces are the flow controllers. Flow controllers are products that are very customizable but are not as competitive on the market demanding higher prices. The planned gross margin for the flow controllers was 35% with an actual margin of 41.%. There was a significant increase without the loss of any business. The Wilkerson company have a quality leadership team; however, there are some things that needs to be changed for the company to succeed and prepare for potential price

    Read More

  • Analysis Of Metro Inc. And Loblaw Companies Limited

    552 Words  | 3 Pages

    Metro’s profit margin is also about double the percentage of Loblaws which demonstrates that Metro is better at taking revenue and turning it into profit than Loblaws. This company’s net earnings had a large increase of 12.9% from the previous year. The profit margin is important for shareholders because it shows them that the company is efficient and profitable. In addition, food deflation should ease in the next quarters so this will help grocery retailers, like Metro, to increase their profits and

    Read More

  • Gemini Electronics: Financial Analysis

    1341 Words  | 6 Pages

    Gemini Electronics has become a successful electronics company that looks to be growing on an upward slope. We can see where Gemini is booming, as well as where they are lacking, by analyzing their Ratios and Statement of Cash Flow. Liquidity measures a firm’s ability to meet its cash obligations; shown by calculating the Current Ratio and the Quick Ratio. Gemini’s liquidity has slightly increased from 2008 to 2009, but remains below the industry average. An acceptable Current Ratio should be around 2:1, which Gemini has exceeded in 2008 (2.52:1) and 2009 (2.56:1).

    Read More

  • Essay On Pro Forma

    552 Words  | 3 Pages

    Traditionally, pro forma earnings are lampooned as “earnings before the bad stuff”, which are lower than the figure according the GAAP. Companies may present to the public their earnings and results of operations on the basis of methodologies other than GAAP. And this presentation in the earnings release is often referred to as “pro forma” financial information. Many companies were thought to be using pro forma figures not only to exclude one-time charges, but also to strip put recurrent costs and other elements that they claimed concealed their “true” performance. “Pro forma” financial information can serve useful purposes.

    Read More

  • Financial Case Study: Delta Signal Company

    682 Words  | 3 Pages

    In order to, analyze the company’s performance, we will closely focus on financial performance which is the degree to which financial objectives have been accomplished. This process measures the result of the overall financial health of the company over a period. The most efficient and effective metrics we choose were the improving operating income and return on equity and increasing sales, earning per share. Firstly, our sales have gradually increased in every single period, despite the minor changes in initiatives.

    Read More

  • Compare And Contrast Costco Vs Walmart

    1975 Words  | 8 Pages

    This ratio will help the company create the level of stock price regarding its sales and revenues and in considering expenses and liabilities. ​Since Walmart is on

    Read More

  • Competitive Case Analysis Of Wilkerson's Company

    1770 Words  | 8 Pages

    EXECUTIVE SUMMARY   TABLE OF CONTENTS Executive Summary 1 Introduction 3 Competitive Situation 4 Variable Costing 5 Existing Costing System 6 Diagram ABC 8 Activity Based Costing & Profitability 9 Conclusion 14 Bibliography 15   INTRODUCTION   COMPETITIVE SITUATION Firstly, here is a brief description of what Wilkerson Company specializes in. According to our case study and various online sources, Wilkerson manufactures and markets a complete line of compressed air treatment components and control products.

    Read More

  • Ratio Analysis Of Nike

    4014 Words  | 17 Pages

    However, Nike seems to be doing the opposite, which is giving a high ratio. Debt per Equity Ratio = Total Debt/Total Equity  The debt per equity ratio shows to what extent a company’s assets are either financed by debt or equity. A high ratio indicates aggressiveness on behalf of the company to finance its growth through debt.

    Read More

  • Tata Motors Case Study

    1250 Words  | 5 Pages

    INTRODUCTION In June 2008, TATA Motors announced the acquisition of brands Jaguar and Land Rover from the car producing giant Ford Motors. The deal was valued at US$ 2.3 billion and is considered an overall success even from intercultural perspective. On the contrary, the deal was speculated to be a huge failure as the world was entering into recession in 2008 and Jaguar Land Rover (JLR) was incurring huge losses. The deal was an all cash deal with 100% acquisition of Jaguar Land Rover’s businesses.

    Read More

  • Swot Analysis: SWOT Analysis Of Huqvarna Group

    1848 Words  | 8 Pages

    SWOT Analysis Husqvarna For all kinds of decisions and situations firms consider SWOT analysis to be the most useful tool. SWOT is a contraction used for Strengths, Weaknesses, Opportunities, and Threats. This analytical tool is perfect when companies want to analyze, plan or evaluate a new proposal, its competitors or develop a new product. Through SWOT, analysis companies not only view options for their business positively and negatively but can also decide upon the way to convert their weaknesses into strengths.

    Read More

  • Tata Communications Case Analysis

    930 Words  | 4 Pages

    1. INTRODUCTION Tata Communications is a truly global communications provider with operations, infrastructure and partnership across established and emerging markets.. Tata Communications focuses on serving key vertical segments, including banking & financial services and media & entertainment, as well as providing catalyst Tata Communications founded in 1986 by Indian Government, The TATA communication Headquarters is in Mumbai, Maharashtra. Mainly TCL key people is Vinod Kumar (CE & MD), the revenue US$2.6 billion (2011), operating Income US$182 million (2011)

    Read More

  • Tata Motors: Innovation And Competitive Advantage And Strategies

    929 Words  | 4 Pages

    Growing customer expectations result in shorter life cycle of products and this means that companies should make their processes more and more flexible adopting modularity and product platforms in order to overcome competitors. Companies who fail to meet dynamic customer needs are doomed to fail. To illustrate this we can consider Tata Motors that designed a car selling at $2500 having identified the need for cheap vehicles and introduced market-pull innovation. Though having some negative feedbacks on its security it is affordable for many families in India.

    Read More

  • Khind Holdings Berhad Swot Analysis

    2240 Words  | 9 Pages

    The current ratio is a liquidity and efficiency ratio that measures a firm's ability to pay off its short-term liabilities with its current assets. In the year 2012, KHB had a current ratio of 1.688 but it comes to decrease in 2013 to a 1.642. The ratio in the year 2014 was 1.670 indicating a slight increase. The competitor of KHB, the PMMB had a current ratio of 4.785, 4.012 and 3.622 from the year 2012 to 2014 respectively. A current ratio should be more than 2.0 as a higher current ratio indicates a more promising current debt payments.

    Read More

More about Fundamental Analysis: Tata Motors

Open Document