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VOL. 11, ISSUE 12 (2025)
A comprehensive financial performance analysis of automotives industry using ratio and cash flow techniques
Authors
P Rajeswari, P Priyanga
Abstract
The manufacturing industry, a major player in
the Indian automotive manufacturing sector, is the subject of this study's
thorough financial performance analysis. With the help of important financial
statistics and pertinent industry standards, the study methodically assesses
the company's financial status by looking at audited financial statements over
a number of years. The main goal is to evaluate the company's solvency over the
long term, profitability, liquidity, and operational effectiveness in order to
give executive management, shareholders, lenders, and additional participants
useful information. Evaluation of ratios, fund assessment, cash flow analysis,
trend evaluation, and comparisons among competitors are all part of the methods
used to find competitive positioning and performance trends. Financial outcomes
are made more understandable and easier to grasp by using graphical, graphical,
and statistical presentations. A ratio evaluation highlights the organization's
operational strengths as well as its shortcomings in terms of working capital
management and capital structure. According to the data, the company has an
elevated ratio of debt to equity since it heavily relies on loan funding. Furthermore,
longer credit terms obtained from suppliers almost a year indicate a
greater reliance on outside funding for the short term. Inadequate turnover of
cash is seen, indicating possible economic strain and limitations on efficient
business processes. In order to reduce financial uncertainty and increase overall
financial stability, the report suggests lowering excessive debt capital,
boosting sales performance, strengthening creditor confidence through
sufficient security provisions, and improving cash management techniques.
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Pages:161-168
How to cite this article:
P Rajeswari, P Priyanga "A comprehensive financial performance analysis of automotives industry using ratio and cash flow techniques". International Journal of Commerce and Management Research, Vol 11, Issue 12, 2025, Pages 161-168
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