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Tata Motors Financial Ratios 2020-21

The document compares financial ratios for Tata Motors and Mahindra for years 2020-21 and 2019-20. It analyzes their current ratios and quick ratios. For Tata Motors, the current ratio increased from 0.53 to 0.60 from 2019-20 to 2020-21, while the quick ratio rose from 0.38 to 0.43. However, both current and quick ratios for Mahindra in 2020-21 were higher at 1.34 and 1.08 respectively, suggesting better liquidity and ability to meet short-term debts compared to Tata Motors.

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296 views4 pages

Tata Motors Financial Ratios 2020-21

The document compares financial ratios for Tata Motors and Mahindra for years 2020-21 and 2019-20. It analyzes their current ratios and quick ratios. For Tata Motors, the current ratio increased from 0.53 to 0.60 from 2019-20 to 2020-21, while the quick ratio rose from 0.38 to 0.43. However, both current and quick ratios for Mahindra in 2020-21 were higher at 1.34 and 1.08 respectively, suggesting better liquidity and ability to meet short-term debts compared to Tata Motors.

Uploaded by

Vish
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Ratios of Tata Motors

Ratios Year 2020-21 Year 2019-20


Current Ratio 0.60 0.53
Quick Ratio 0.43 0.38
Proprietary Ratio 29.28 29.37
Debt Equity Ratio
Operating Profit Ratio
Net Profit Ratio
Stock Turnover Ratio
Fixed Asset Turnover
Ratio
Debtors Turnover Ratio

Ratios of Mahindra ltd.


Ratios Year 2020-21 Year 2019-20
Current Ratio 1.34 1.38
Quick Ratio 1.08 1.07
Proprietary Ratio 57.90 68.25
Debt Equity Ratio
Operating Profit Ratio
Net Profit Ratio
Stock Turnover Ratio
Fixed Asset Turnover
Ratio
Debtors Turnover Ratio
CURRENT RATIO

Comparison between current ratio of Tata Motors of 2020-21 and


2019-20:

 The value we got from the above table for 2020-21 of Tata
Motors is 0.60.
 The value for 2019-20 of Tata Motors is 0.53.
 As per data above, we can see that current ratio of Tata Motors
have increased by 0.07.
 This indicates that management of the company has improved
its liquidity which will do better for the company.
 Having increase in current ratio will help Tata Motors to pay its
creditors back.

Comparison between current ratio of Tata Motors and Mahindra of


2020-21:

 The value we got from the above table for 2020-21 of Tata
Motors is 0.60.
 The value we got for 2020-21 of Mahindra is 1.34.
 As per above data, Tata motors is showing a lower Current
Ratio compared to Mahindra. It shows that Tata motors are not
able to maintain a better balance between current assets and
current liabilities compared to Mahindra.
 Having better Current Ratio helps Mahindra to have better rate
of growth compared to Tata Motors in aspect to market
shareholding in the coming future.
 Tata Motors have to improve its Current ratio as compared to
Mahindra so, it will help better in paying the short-term debts.
 Now we also got to know that Mahindra’s management is
working in better manner compared to Tata Motors.
QUICK RATIO

Comparison between current ratio of Tata Motors of 2020-21 and


2019-20:

 The value we got from the above table for 2020-21 of Tata
Motors is 0.43.
 The value for 2019-20 of Tata Motors is 0.38.
 As per data above, we can see that current ratio of Tata
Motors have increased by 0.05.
 The increase in quick ratio will help Tata Motors their
relationship with the creditors, as increased quick ratio will
help make creditors believe that their money is in safe.
 Having increased quick ratio will also make

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