Financial Ratio Analysis of An Automobile Industry-Tata Motors

Jatinder Kaur; Mukesh Kumar Gupta; Arpit Jain

Abstract

Tata Motors, one of the largest car companies globally, was established in India in 1945. This project aims to conduct a financial statement analysis of Tata Motors, how the company has performed in the last 4 financial years, how its financial position has been affected, and how it can overcome those issues if it meets certain criteria. The analysis has been done via financial ratio and data analysis, as per the accounting guidelines. The research done on this topic is completely based on secondary data, which includes annual reports, Sensex reports, etc., and is based on descriptive analysis. The time period chosen for statements is 2019–2022. In the end, it is concluded that the Tata Motor’s downfall has been significant but is expected to rebound because of the name and acquisition of several other car companies, along with its different joint ventures. After the study, it can be said that the company is expected to recover the loss it attained during the period of international lockdown due to COVID-19, if it is successful in managing both its assets and the debt it has raised According to the report, Tata Motors' financial performance significantly declined throughout the given time, which had a negative impact on the company's overall financial condition. The impact of the COVID-19 epidemic and related worldwide lockdowns are among the many variables that are blamed for the company's difficulties. This research attempts to clarify the particular regions that have contributed to Tata Motors' downfall by means of a thorough analysis of important financial metrics.