Presentation (6)

1. Ms.Jagruti Anil Ghanekar M.Com Part - 2 Guide : Professor (Dr.) Jyoti Thakur Head Department Of Commerce S.N.D.T. Women’s

A Study on Comparative Financial Analysis of Tata Motors Ltd. For
F. Y. 2023 – 24 and 2024 – 25 Using ratio Analysis
Ms.Jagruti Anil Ghanekar
M.Com Part - 2
Guide : Professor (Dr.) Jyoti Thakur
Head Department Of Commerce
S.N.D.T. Women’s University , Mumbai

2.

Flow
of
Presentation
• Introduction
• Objectives
• Literature Review
• Hypothesis
Data Analysis
• Conclusion
• Findings

3. Introduction

Tata Motors Limited is a leading automobile
company and part of the Tata Group.
It was founded in 1945 and initially focused on
manufacturing locomotives.
Later, it expanded into commercial and passenger
vehicles.
The company offers a wide range of vehicles
including cars, trucks, and buses.

4. Objectives

To assess the overall financial performance of
Tata Motors Limited for the year 2025.
To analyze key financial ratios like ROA, ROE,
and profitability indicators.
To compare financial performance with previous
years to identify trends and improvements.

5. Literature Review

1.Dr.S.M.Yamuna : Studies on Tata Motors Limited show
mixed performance with improving sales but weak
liquidity.
2.GIRDHARI LAL YADAV: Research highlights good
profitability and efficiency but concerns about debt
management.
3.KALPESH BHINGANE,YASH BHALANI : Comparative studies
show Mahindra & Mahindra performs better in stability.
4.Mr.SAURABH AGARWAL: Recent studies indicate strong
growth due to Evs and Jaguar Land Rover.
5.V.RAMBABU: Overall, improvement is seen, but better
cost control and financial management are needed.

6. Hypothesis

1.H₀₁: There is no significant improvement in the
financial performance of the selected companies in the
year 2025 compared to the previous year.
H₁₁: There is a significant improvement in the
financial performance of the selected companies in the
year 2025 compared to the previous years.
2.H₀₂: There is no significant relationship between
profitability and liquidity of the selected companies
for the year 2025.
H₁₂: There is a significant relationship between
profitability and liquidity of the selected companies
for the year 2025.

7.

The study compares the financial performance of the company for 2023–24 and 2024–25
using ratio analysis.
1.Liquidity:
Current ratio increased (0.97 → 1.47), showing improved short-term financial
position in 2024–25.
2.Solvency:
Debt-equity ratio rose (0.47 → 4.22), indicating higher financial risk and weaker
solvency in 2024–25.
3.Working Capital:
Decreased (58.98 → 19.53), showing reduced operational liquidity in 2024–25.
4.Efficiency:
Fixed asset ratio increased (0.53 → 0.98), indicating higher investment in fixed
assets.
5.Capital Structure:
Proprietary ratio increased (0.24 → 0.68), showing stronger financial stability in
2024–25.

8. Data Analysis

1. Current Ratio:
The current ratio measures the ability of an organization to pay
short-term obligations or those and analysts how a company can
maximize the current assets on its balance sheet to satisfy its
current debt and other payables.
Current Ratio = Current Asset / Current Liabilities
Element
Ratio
Element
Ratio
Current Ratio
Current Ratio
2023 – 24
2024 - 25
2023
– 24
0.97
0.97
1.47
2024 – 25
1.47

9.

current ratio
1,6
1,4
1,2
1
0,8
current ratio
0,6
0,4
0,2
0
2023 - 24
2024 - 25
The Current ratio has shown non-fluctuating trend as 0.97 and 1.47 during year 2024
to 2025.

10.

Debt Equity Ratio: The debt equity ratio is a financial ratio
indicating the relative proportion of
shareholder’s equity and debt used to finance a
company assets.
Debt equity ratio = long term debt / shareholder
fund Element Ratio
2023 - 24
2024 - 25
Debt Equity Ratio
0.47
4.22

11.

Debt Equity Ratio
4,5
4
3,5
3
2023 - 24
2024 - 25
2,5
2
1,5
1
0,5
0
2023 - 24
2024 - 25
The debt equity ratio is decreased from 0.47 and 4.22 in the year 2024 – 25.

12.

3. Fixed Asset Ratio: Fixed Asset Ratio is a financial ratio that shows the proportion of fixed asset to long- term funds or total asset of
a company. It helps in understanding how much of the company’s funds are invested in fixed assets.
Fixed Asset Ratio = Sales / Net fixed asset
Elements Ratio
2023 – 24
Fixed Asset Ratio
0.53
2024 - 25
0.98

13.

Fixed Asset Ratio
1,2
1
0,8
0,6
Fixed Asset Ratio
0,4
0,2
0
2023 -24
2024 - 25
The Fixed Asset Ratio has shown non-fluctuating trend as 0.53 and 0.98 during year
2024 -25.

14. Conclusion

The company showed mixed financial performance
in 2023–24 and 2024–25.Liquidity and capital
structure improved in 2024–25, indicating
growth.However, higher debt and lower working
capital increased financial risk.

15. Findings

The analysis shows that 2024–25 improved
liquidity and capital structure, indicating
growth.However, higher debt negatively impacted
solvency during this year. IN contrast, 2023–24
was more stable with better solvency and working
capital management.