CAR INDUSTRY RATIO ANALYSIS
SUBMITTED BY: - SUBMITTED TO:-
NEHA SHAHI (JIML-11-93) Prof. DHEERAJ MISHRA
NEHA SINGH (JIML-11-94)
NEHA TIWARI (JIML-11-95)
NIKHIL SINGH (JIMML-11-97)
With a sense of gratitude and respect, we would like to extend our heartiest thanks to all of those who provided help and guidance to make this project. No Project is ever the outcome of single individual’s talent or effort. This work is no exception. This project would not have been possible without the whole hearted encouragement, support and co-operation of our guide, friends and well-wishers. Although it is not possible for us to name and thank them all individually, we must make special mention of some of the personalities and acknowledge our sincere thanks to them.
The successful completion of this project rests on the shoulder of many persons who have helped us directly or indirectly. We wish to take this opportunity to express to all those, without whose help, completion of this project would have been difficult. We are indebted and thankful to all the individuals who have guided, advised, inspired and supported us in making this project a success.
Our gratitude to our honorable guide Prof. Dheeraj Mishra for giving us the opportunity for developing the project and his able guidance, motivation constant encouragement throughout our project. Without his help this project would never have been realized in its entirety.
S. NO. TOPIC PAGE NO.
1. INTRODUCTION OF RATIO ANALYSIS 4 2. INTERPRETATION OF GM 6
3. INTERPRETATION OF HONDA 11 4. INTERPRETATION OF HYUNDAI 16 5. INTERPRETATION OF MARUTI SUZUKI 21 6. INTERPRETATION OF INDUSTRY 25
Financial ratios may be used by managers within a firm, by current and potential shareholders (owners) of a firm, and by a firm's creditors. Security analysts use financial ratios to compare the strengths and weaknesses in various companies. If shares in a company are traded in a financial market, the market price of the shares is used in certain financial ratios.
Purpose and types of ratios
Financial ratios quantify many aspects of a business and are an integral part of the financial statement analysis. Financial ratios are categorized according to the financial aspect of the business which the ratio measures. Liquidity ratios measure the availability of cash to pay debt. Activity ratios measure how quickly a firm converts non-cash assets to cash assets. Debt ratios measure the firm's ability to repay long-term debt. Profitability ratios measure the firm's use of its assets and control of its expenses to generate an acceptable rate of return. Market ratios measure investor response to owning a company's stock and also the cost of issuing stock. These are concerned with the return on investment for shareholders, and with the relationship between return and the value of an investment in company’s shares.
Financial ratios allow for comparisons
* between companies
* between industries
* between different time periods for one company
* between a single company and its industry average
Ratios generally hold no meaning unless they are benchmarked against something else, like past performance or another company. Thus, the ratios of firms in different industries, which face different risks, capital requirements, and competition, are usually hard to compare.
Interpretation of ratio analysis of General Motors
RATIOS| YEAR1| YEAR2| YEAR3| YEAR4|...