RATIO ANALYSISSUBMITTED BYGROUP8
CURRENT RATIO:-Bajaj                = 5204.19 / 4664.37               =1.12Tata Motors = 64461.47 / 73268.07              ...
ACID TEST RATIO:-Bajaj                  = 4500.58 / 4664.37                =0.965Tata Motors = 46245.45 / 73268.07        ...
INVENTORY TURNOVERRATIO:-Bajaj               = 14126.02 / 639.93               =22.07Holding Period      =17 daysTata Moto...
DEBTORS TURNOVERRATIO:-Bajaj             = 18945.52 / 370.335              = 51.16Period        = 8 daysTata Motors   = 16...
CREDITORS TURNOVERRATIO:-Bajaj             =14211.67 / 1905.695             = 7.46Period       = 49 daysCash Conversion Cy...
Cash conversion cycle As both the companies have long time  period of payment from their suppliers  they have negative ca...
FIXED ASSET TURNOVERRATIOBajaj               = 18945.52 / 5958.22              = 3.18Tata Motors      = 165654.49 / 80469....
TOTAL ASSET TURNOVERRATIOBajaj          =18945.52 / 11162.41               =1.697Tata                 =165654.59 / 64461.4...
DEBT EQUITY RATIOBajaj          =254.55 / 6081.72               =0.0418Tata Motors    =30421.06 / 33149.06               =...
LIABILITY TO EQUITYRATIOBajaj         = 5080.69 / 6081.72              = 0.835Tata Motors   = 112232.77 / 33149.93        ...
INTEREST COVERAGERATIOBajaj              = 4234.58 / 22.79               =185.81Tata Motors     = 22084.06 / 2982.22      ...
RETURN ON EQUITYBajaj               = 3045.4 / 6081.72               = 50.07%Tata Motors    =13516.5 / 33149.93           ...
RETURN ON TOTALASSETSBajaj         = 3045.4 / 11162.41              = 27.28%Tata Motors   = 13516.5 / 145382.64           ...
RETURN ON CAPITALEMPLOYEDBajaj       = 3045.4 / 6387.71            = 47.68%Tata            = 13516.5 / 63570.99           ...
EARNINGS PERSHARE(EPS)Bajaj         = 3045.4 / 28.937              =105.2Tata Motors   = 13516.5 / 63.475              =21...
GROSS PROFIT MARGINBajaj          = 4466.1 / 18945.52               = 23.58%Tata Motors     = 48905.99 / 165654.49        ...
PRICE EARNING RATIOBajaj          =1677.9 / 105.2               =15.92Tata Motors    = 275.7 / 212.94               =1.294...
PAY-OUT RATIOBajaj          = 45 / 105.2               = 0.427Tata Motors    = 40.50 / 212.94               = 0.19Bajaj is...
DIVIDEND YIELD RATIOBajaj          = 45 / 1677.9               = 0.0268Tata Motors     = 40.50 / 275.7                = 0....
Price fluctuationPrice changes of Bajaj’s share  1680-1460/1460=15.07%Price changes of Tata’s share275.70- 249.5/249.5=10....
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Ratio analysis group8

  1. 1. RATIO ANALYSISSUBMITTED BYGROUP8
  2. 2. CURRENT RATIO:-Bajaj = 5204.19 / 4664.37 =1.12Tata Motors = 64461.47 / 73268.07 = 0.879 Bajaj has better liquidity than Tata motors but overall both the company has far lower liquidity than standard ratio.
  3. 3. ACID TEST RATIO:-Bajaj = 4500.58 / 4664.37 =0.965Tata Motors = 46245.45 / 73268.07 =0.631 Bajaj has a good acid ratio than Tata and also close to standard ratio. That means Bajaj has 96.5 rs acid assets for 100 rs of liabilities
  4. 4. INVENTORY TURNOVERRATIO:-Bajaj = 14126.02 / 639.93 =22.07Holding Period =17 daysTata Motors = 109467.58 / 16143.265 =6.78Holding Period = 54 daysInventory holding period of Tata motors is very high
  5. 5. DEBTORS TURNOVERRATIO:-Bajaj = 18945.52 / 370.335 = 51.16Period = 8 daysTata Motors = 165654.49 / 7381.245 = 22.44Period = 17 days
  6. 6. CREDITORS TURNOVERRATIO:-Bajaj =14211.67 / 1905.695 = 7.46Period = 49 daysCash Conversion Cycle = (24) daysTata Motors = 112003.3 / 32294.69 = 3.468Period = 104 daysCash Conversion Cycle = (33) days
  7. 7. Cash conversion cycle As both the companies have long time period of payment from their suppliers they have negative cash conversion cycle Tata motors has better suppliers payment period than Bajaj
  8. 8. FIXED ASSET TURNOVERRATIOBajaj = 18945.52 / 5958.22 = 3.18Tata Motors = 165654.49 / 80469.74 = 2.06Bajaj is able to use its assets more efficiently to produce sales
  9. 9. TOTAL ASSET TURNOVERRATIOBajaj =18945.52 / 11162.41 =1.697Tata =165654.59 / 64461.47 =2.57But over all Tata is more able to use its total assets to produce sales
  10. 10. DEBT EQUITY RATIOBajaj =254.55 / 6081.72 =0.0418Tata Motors =30421.06 / 33149.06 =0.918Bajaj has lesser debt than Tata motors but both the companies has lower debt equity ratio than standard ratio.
  11. 11. LIABILITY TO EQUITYRATIOBajaj = 5080.69 / 6081.72 = 0.835Tata Motors = 112232.77 / 33149.93 = 3.39
  12. 12. INTEREST COVERAGERATIOBajaj = 4234.58 / 22.79 =185.81Tata Motors = 22084.06 / 2982.22 =7.405Bajaj is able to repay the interest rate 185 times which is higher than Tata because Tata has huge long term liabilities.
  13. 13. RETURN ON EQUITYBajaj = 3045.4 / 6081.72 = 50.07%Tata Motors =13516.5 / 33149.93 = 40.7%Bajaj has greater return on equity than Tata.
  14. 14. RETURN ON TOTALASSETSBajaj = 3045.4 / 11162.41 = 27.28%Tata Motors = 13516.5 / 145382.64 = 9.29%
  15. 15. RETURN ON CAPITALEMPLOYEDBajaj = 3045.4 / 6387.71 = 47.68%Tata = 13516.5 / 63570.99 = 21.26%
  16. 16. EARNINGS PERSHARE(EPS)Bajaj = 3045.4 / 28.937 =105.2Tata Motors = 13516.5 / 63.475 =212.94
  17. 17. GROSS PROFIT MARGINBajaj = 4466.1 / 18945.52 = 23.58%Tata Motors = 48905.99 / 165654.49 = 29.52%Gross profit of Tata is greater than Bajaj that shows that Tata has greater efficiency in manufacturing.
  18. 18. PRICE EARNING RATIOBajaj =1677.9 / 105.2 =15.92Tata Motors = 275.7 / 212.94 =1.294Bajaj has a higher p/e ratio that shows that investor has ready to invest at higher price.
  19. 19. PAY-OUT RATIOBajaj = 45 / 105.2 = 0.427Tata Motors = 40.50 / 212.94 = 0.19Bajaj is paying greater part of their earning as dividend
  20. 20. DIVIDEND YIELD RATIOBajaj = 45 / 1677.9 = 0.0268Tata Motors = 40.50 / 275.7 = 0.146It shows the real return to the investors as a percent of current market price. Tata has better return.
  21. 21. Price fluctuationPrice changes of Bajaj’s share 1680-1460/1460=15.07%Price changes of Tata’s share275.70- 249.5/249.5=10.5%As Bajaj is paying higher dividend and has better profitability ratios and lesser risk therefore they have more growth in market price,

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