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    Financial Statement Analysis of Automobile Sector: Tata Motors Mahindra and Mahindra

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    Ashwini Mahale
    The document analyzes and compares the financial statements of Tata Motors and Mahindra & Mahindra over multiple years through comparative statements, trend analysis, common-size statements, and financial ratios. Key findings include Tata Motors having higher debt-to-equity and interest coverage ratios than Mahindra & Mahindra, while Mahindra & Mahindra has better returns on assets and equity. Both companies show growth over time in assets, revenues, and profits based on the trend analysis.

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    Financial Statement Analysis of Automobile Sector: Tata Motors Mahindra and Mahindra

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    Ashwini Mahale
    51 views25 pages
    The document analyzes and compares the financial statements of Tata Motors and Mahindra & Mahindra over multiple years through comparative statements, trend analysis, common-size statements, and financial ratios. Key findings include Tata Motors having higher debt-to-equity and interest coverage ratios than Mahindra & Mahindra, while Mahindra & Mahindra has better returns on assets and equity. Both companies show growth over time in assets, revenues, and profits based on the trend analysis.

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    The document analyzes and compares the financial statements of Tata Motors and Mahindra & Mahindra over multiple years through comparative statements, trend analysis, common-size statements, and financial ratios. Key findings include Tata Motors having higher debt-to-equity and interest coverage ratios than Mahindra & Mahindra, while Mahindra & Mahindra has better returns on assets and equity. Both companies show growth over time in assets, revenues, and profits based on the trend analysis.

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    51 views25 pages

    Financial Statement Analysis of Automobile Sector: Tata Motors Mahindra and Mahindra

    Uploaded by

    Ashwini Mahale
    The document analyzes and compares the financial statements of Tata Motors and Mahindra & Mahindra over multiple years through comparative statements, trend analysis, common-size statements, and financial ratios. Key findings include Tata Motors having higher debt-to-equity and interest coverage ratios than Mahindra & Mahindra, while Mahindra & Mahindra has better returns on assets and equity. Both companies show growth over time in assets, revenues, and profits based on the trend analysis.

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    of 25

    FINANCIAL STATEMENT ANALYSIS OF AUTOMOBILE SECTOR

    TATA MOTORS MAHINDRA AND MAHINDRA

    Group members

    Komal Bhatia Prachi Dube Ashwini Mahale Khushboo Satardekar Khushboo Singh

    5 14

    33 52 54

    Types of financial statement analysis

    Comparative financial statements

    Trend financial statements


    Common-size financial statements Ratio analysis

    TATA MOTORS

    Established in 1945 By J. R. D. Tata It is the world's eighteenth-largest motor vehicle manufacturing company, fourth-largest truck manufacturer and second-largest bus manufacturer by volume. Tata Motors has auto manufacturing and assembly plants in india are Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad and Pune, and in Argentina, South Africa, Thailand and the United Kingdom.

    Mahindra and Mahindra

    Founded1945 (Ludhiana) By K.C. Mahindra and J.C. Mahindra and Malik Ghulam Mohammed M&M has a global presence and its products are exported to several countries. Its global subsidiaries include Mahindra Europe Srl. based in Italy, Mahindra USA Inc., Mahindra South Africa and Mahindra (China) Tractor Co. Ltd.

    Comparative financial statements (Balance sheet)


    TATA MOTORS 300 250 200 150 100 50 fixed inves capit total asset tmen al loans s ts tata motors 0.02 57 62 251 Mahindra and Mahindra 0.31 35.76 17 11 0 tata motors Mahindra and Mahindra Mahindra and Mahindra

    Continued.
    TATA MOTORS 450 400 350 300 250 200 150 100 50 0 Mahindra and Mahindra

    tata motors

    Loan curre Debto Inven s and nt Cash adva liabilit rs tories nces ies tata motors 20 29 403 57 49 mahindra and mahindra 31 31 152 50 79

    Comparative financial statements (Profit and Loss A/c)


    TATA MOTORS 250 200 150 100 50 oper cost net Net atin Inter of g sale profi sale est s t profi s t Tata Motors 35 111 33 1 47 Mahindra And Mahindra 65 216 23 46 13 Mahindra and Mahindra

    Tata Motors
    Mahindra And Mahindra

    Trend financial statements (Balance sheet)

    TATA MOTORS

    MAHINDRA & MAHINDRA

    Equity share capital Reserves Net worth Secured loans

    2011 11.23% 141% 228% 94%

    2012 11.24% 320% 389% 74%

    2011 3.77% 56% 155% 151%

    2012 4.09% 85% 182% 145%

    Continued.
    TATA MOTORS MAHINDRA & MAHINDRA

    Unsecured loans Minority 116% interest Fixed assets 104% Capital WIP 146%

    2011 92%

    2012 165% 144% 169% 39%

    2011 89% 179% 186% 90%

    2012 124% 184% 218% 57%

    Continued.
    TATA MOTORS
    2011 Investments 115% Stock 124% Debtors 96% Cash 60% Loans and 126% advances 2012 402% 161% 115% 301% 197%

    MAHINDRA & MAHINDRA 2011 2012 139% 154% 154% 202% 142% 186% 137% 345% 142% 214%

    Continued.

    TATA MOTORS

    Current Liabilities Provisions

    2011 110% 129%

    2012 169% 168%

    MAHINDRA & MAHINDRA 2011 2012 146% 283%

    171%

    218%

    Trend financial statements Profit and Loss Account


    TATA MOTORS MAHINDRA & MAHINDRA

    Sales COGS Operating profit Net profit

    2011 134% 127% 247% 366%

    2012 181% 157% 327% 539%

    2011 112% 75% 75% 111%

    2012 182% 92% 92% 97%

    Common-size financial statements (Balance sheet)


    TATA MOTORS MAHINDRA & MAHINDRA

    2011 Shareholders fund 37% Total Debt 54% Fixed Assets 68% Investments 5%

    2012 46% 63% 80% 12%

    2011 38.68% 47% 40.57% 13.04%

    2012 41.69% 48.76% 43.64% 13.29%

    Continued

    TATA MOTORS

    MAHINDRA & MAHINDRA

    Current assets Loans and Advances Total current liabilities

    2011 2012 47% 62% 37.87% 43.25%

    2011 2012 29.56% 39.74% 43% 59%

    94%

    101%

    36%

    59%

    Common-size financial statements Profit and Loss Account

    TATA MOTORS

    MAHINDRA & MAHINDRA

    2011 COGS 76% Operating profits 13.68% Net profit 7.50%

    2012 77% 13.48% 8.20%

    2011 73.46% 11.01% 9.24%

    2012 78.57% 8.299% 4.897%

    Ratio analysis
    I. Liquidity Ratios

    Tata Motors Mahindra and Mahindra Current ratio Quick ratio 1.03:1 0.79:1 1.68:1 1.38:1

    Continued
    II. Leverage Ratios

    Tata Motors Mahindra and Mahindra Debt equity Ratio Capital Gearing Ratio 1.18:1 1.18:1 1.13:1 1.13:1

    Continued

    Tata Motors Mahindra and Mahindra Proprietary Ratio Interest Coverage Ratio 17 7.42 times 26 4.33 Times

    Continued

    Tata Motors Mahindra and Mahindra Debt Service Coverage Ratio 3.11 Times 2.69 Times

    Continued
    III. Assets management ratio

    Tata Motors Mahindra and Mahindra

    Inventory Turnover Ratio Debtors Turnover Ratio Debtors Collection Period

    7.94
    20.10 18 days

    7.29
    10.60 34 days

    Continued

    Tata Motors Fixed Assets Turnover Ratio Total Assets Turnover Ratio 2.89 0.87

    Mahindra and Mahindra 3.64 1.00

    Continued
    IV. Profitability Ratios:

    Tata Motors Mahindra and Mahindra Gross Profit Margin Net Profit Margin 23% 10% 19% 11%

    Tata Motors Return on total assets Return on Equity/Net Worth 17.15% 42%

    Mahindra and Mahindra 34.42% 17%

    V. Market Based Ratios:

    Tata Motors Mahindra and Mahindra Earning Per Share Dividend Payout Ratio 43 0.094 0.040 47.128 0.276 0.130

    Dividend per share

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