LIQUIDITY AND PROFITABILITY ANALYSIS OF THE SELECTED AUTOMOBILE COMPANIES OF INDIA

dc.contributor.authorJaydeep Ramanuj, Salina Memon
dc.date.accessioned2026-06-25T08:36:02Z
dc.date.issued2023-12
dc.descriptionCompanies’ performance affects many stakeholders like shareholders, directors, employees and customers etc. there are many factors that affect this performance which depends upon the size of the company, aera, customers and other factors. Financial ratios are useful indicators to measure a company’s performance and financial situations. To understand the performance of the company varies indicator can be used from which liquidity and profitability ratios are commonly used. Liquidity indicates the ability of company to pay its debts in short-term maturing within one year. A company’s liquidity resources can be maintained in variety of ways such as Cash on hand, cash in bank, current assets, cash credit and overdrafts. and profitability indicates the ability of company to earn a profit. Profitability is the basic aim of any organisation. Without profitability business will not survival in long run. Therefore, estimating future profitability and analysing past and present profitability are important. The Automobile industry is one of the key drivers that boost the economic growth of the country. The automobile industry is the significant driver of Indian economy. The automobile industry is one of the largest revenues generating industry in India. This study aims to measure the impact of liquidity ratio on the profitability of the listed automobile firms of India. This study also tries to find that is there is any significant impact of liquidity ratios on profitability either positive or negative.
dc.description.abstractLiquidity and profitability ratios are very vital indicators of the company’s performance for the short- and longterm view. Continuing profit help for the future growth of the company and liquidity proves the smooth running of the business on a short-term basis. In this study selected Automobile companies of India are used for the analysis. The purpose of the study is to find out the liquidity and profitability performance of companies. And to check relationship between liquidity and profitability of selected companies. For the purpose of the study three companies are selected from the Automobile sector which are Maruti Suzuki India Ltd., Tata Motors and Mahindra and Mahindra Ltd. The data is collected from annual report of selected companies. The study period is for 10 years. From 2013-14 to 2022-23. For the analysis two statistical techniques arithmetic mean and regression analysis are used. From the analysis it has been observed that in liquidity ratio, Mahindra and Mahindra Ltd. Performed better than Maruti Suzuki India Ltd and Tata Motors Ltd. while in profitability ratio Maruti Suzuki India Ltd. Performed better than Mahindra and Mahindra Ltd and Tata Motors Ltd. The study concludes that there is no statistically significant relationship between the liquidity ratio and profitability ratio.
dc.identifier.citation2
dc.identifier.issn2321-1520
dc.identifier.urihttp://160.160.1.15:4000/handle/123456789/510
dc.language.isoen
dc.subjectLiquidity
dc.subjectProfitability
dc.subjectAutomobile
dc.subjectPerformance
dc.titleLIQUIDITY AND PROFITABILITY ANALYSIS OF THE SELECTED AUTOMOBILE COMPANIES OF INDIA
dc.typeArticle

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