The document analyzes the financial performance of Tata Motors and Ashok Leyland from 2011-2013 using ratio analysis. It examines the companies' liquidity, solvency, capital structure, and profitability. Key findings include that Tata Motors had higher revenue, EBITDA, and ROCE than Ashok Leyland over the period studied, but Ashok Leyland had higher net profit and EPS. The debt-to-equity ratio was also lower for Ashok Leyland, indicating less debt.

1. A Study On Ratio Analysis For Financial
Performances Of Ashok Leyland & Tata
Motors
Jogendra Singh Yadav
PRN: - 12114

2. OBJECTIVES
• To study the financial performance of the company.
• To know the ratio analysis of financial position of the company.
• To find out the liquidity, solvency, capital structure and profitability position of the company.
• To give suggestion for the improvement of the financial performance.
SCOPE
• The researcher took the area of performance in Tata Motors & Ashok Leyland by analysis 2 years
balance sheet, P&L account and finding ratios for liquidity, turnover, and investment and
profitability position of the company.

3. Financial Highlights Of
(in crore) 2013 2012 2011
Revenue 188817.63 165654.49 122127.92
Current Assets -6739.40 -8912.10 -5188.82
Operating profit 24547.30 22311.24 16817.48
EBITDA 24756.12 22141.47 17477
Net profit 301.81 1242.23 1811.82

4. Key Ratios of Tata Motors

5. (in crore) 2013 2012 2011
Revenue 12488.50 13309.59 11407.15
Current Assets -348.52 -538.31 365.22
Operating profit 876.47 1256.10 1217.56
EBITDA 1228.37 1298.03 1258.16
Net profit 433.71 565.98 631.30
Financial Highlights Of

6. Key Ratios of Ashok Leyland

7. Trends of Stock Prices of Tata Motors

8. Trends of stock prices of Ashok Leyland

9. Comparisons Of Ratios
TATA MOTORS ASHOK LEYLAND
REVENUE 188817.63 12488.50
EBITDA 24756.12 1228.37
NET PROFIT 301.81 433.71
EPS 0.95 1.63
ROCE 21.86% 7.01%
DEBT/EQUITY 1.16% 0.79%

10. CONCLUSION
• Revenue of Tata motors is 188817.63 cr. Which is more then Ashok Leyland i.e. 12488.50cr.
• EBITDA of Tata motors is 24756.12cr. which is more then Ashok Leyland i.e. 1228.37.
• Net profit of Tata motors is 301.81cr.which is less then Ashok Leyland i.e. 433.71cr.
• EPS of Tata motors is Rs.0.95 which is lower than 1.63 of Ashok Leyland. A higher EPS is always
good to gave an idea to investor in which company he should invest.
• ROCE of Tata motors is 21.86% which is higher then Ashok Leyland i.e. 7.01%.
• Debt/Equity of Tata motors is 1.16% which is higher then 0.70% of Ashok Leyland. A lower
debt/equity ratio is always good. If it is lower then it means there is less debt in company.