Financial Performance of Indian Automobile Companies

M. Jegadeeshwaran

Financial Performance of Indian Automobile Companies

Keywords : Indian Automobile Companies, Descriptive Statistics, Ratio Analysis, Multiple Regression, Probability, Short term Solvency, Long term Solvency


A well-developed transport system plays a pivotal role in the development on economy. India is no exception to the unprecedented growth of the transportation system. The automotive industry of India is also growing at repaid speed occupying the prominent place on the ‘canvases of Indian economy. The objectives of the present study are analyse the profitability and solvency position of the select automobile companies in India by using ratio analysis, descriptive statistics, and regression. The major finding of the study indicates that Short-term solvency position is not satisfactory during the study periods. Hence the companies should increase their current assets. Debt equity ratio and current assets to shareholders fund ratio show the fluctuating trend, therefore the companies should pay more attention to improve its debt, equity and share holders’ wealth position. The companies may concentrate on their cost of production, investment in fixed assets and their sales turnover to improve their profitability.


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