1. RATIO ANALYSIS
SUBMITTED BY
GROUP8

2. CURRENT RATIO:-
Bajaj = 5204.19 / 4664.37
=1.12
Tata 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. ACID TEST RATIO:-
Bajaj = 4500.58 / 4664.37
=0.965
Tata 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. INVENTORY TURNOVER
RATIO:-
Bajaj = 14126.02 / 639.93
=22.07
Holding Period =17 days
Tata Motors = 109467.58 / 16143.265
=6.78
Holding Period = 54 days
Inventory holding period of Tata motors
is very high

5. DEBTORS TURNOVER
RATIO:-
Bajaj = 18945.52 /
370.335
= 51.16
Period = 8 days
Tata Motors = 165654.49 / 7381.245
= 22.44
Period = 17 days

6. CREDITORS TURNOVER
RATIO:-
Bajaj =14211.67 /
1905.695
= 7.46
Period = 49 days
Cash Conversion Cycle = (24) days
Tata Motors = 112003.3 / 32294.69
= 3.468
Period = 104 days
Cash Conversion Cycle = (33) days

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. FIXED ASSET TURNOVER
RATIO
Bajaj = 18945.52 /
5958.22
= 3.18
Tata Motors = 165654.49 / 80469.74
= 2.06
Bajaj is able to use its assets more
efficiently to produce sales

9. TOTAL ASSET TURNOVER
RATIO
Bajaj =18945.52 / 11162.41
=1.697
Tata =165654.59 /
64461.47
=2.57
But over all Tata is more able to use its
total assets to produce sales

10. DEBT EQUITY RATIO
Bajaj =254.55 / 6081.72
=0.0418
Tata Motors =30421.06 / 33149.06
=0.918
Bajaj has lesser debt than Tata motors
but both the companies has lower
debt equity ratio than standard ratio.

11. LIABILITY TO EQUITY
RATIO
Bajaj = 5080.69 / 6081.72
= 0.835
Tata Motors = 112232.77 / 33149.93
= 3.39

12. INTEREST COVERAGE
RATIO
Bajaj = 4234.58 / 22.79
=185.81
Tata Motors = 22084.06 / 2982.22
=7.405
Bajaj is able to repay the interest rate
185 times which is higher than Tata
because Tata has huge long term
liabilities.

13. RETURN ON EQUITY
Bajaj = 3045.4 / 6081.72
= 50.07%
Tata Motors =13516.5 / 33149.93
= 40.7%
Bajaj has greater return on equity than
Tata.

14. RETURN ON TOTAL
ASSETS
Bajaj = 3045.4 / 11162.41
= 27.28%
Tata Motors = 13516.5 / 145382.64
= 9.29%

15. RETURN ON CAPITAL
EMPLOYED
Bajaj = 3045.4 / 6387.71
= 47.68%
Tata = 13516.5 /
63570.99
= 21.26%

16. EARNINGS PER
SHARE(EPS)
Bajaj = 3045.4 / 28.937
=105.2
Tata Motors = 13516.5 / 63.475
=212.94

17. GROSS PROFIT MARGIN
Bajaj = 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. PRICE EARNING RATIO
Bajaj =1677.9 / 105.2
=15.92
Tata Motors = 275.7 / 212.94
=1.294
Bajaj has a higher p/e ratio that shows
that investor has ready to invest at
higher price.

19. PAY-OUT RATIO
Bajaj = 45 / 105.2
= 0.427
Tata Motors = 40.50 / 212.94
= 0.19
Bajaj is paying greater part of their
earning as dividend

20. DIVIDEND YIELD RATIO
Bajaj = 45 / 1677.9
= 0.0268
Tata Motors = 40.50 / 275.7
= 0.146
It shows the real return to the investors
as a percent of current market price.
Tata has better return.

21. Price fluctuation
Price changes of Bajaj’s share
1680-1460/1460=15.07%
Price changes of Tata’s share
275.70- 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,