# Financial Ratio Analysis of Indian Automotive Companies
> A comparative financial study of Maruti Suzuki, Tata Motors, M&M, Hyundai, and Force Motors using liquidity, efficiency, and profitability ratios for FY 2024-25.

Tags: automotive-industry, ratio-analysis, financial-statements, maruti-suzuki, tata-motors, mahindra, hyundai, profitability
## Comparative Financial Study: Indian Automotive Sector
This study evaluates the financial health of five leading automotive companies: Maruti Suzuki, Tata Motors, Mahindra & Mahindra (M&M), Hyundai, and Force Motors for the period 2024–25.

## Liquidity Analysis
* **Current Ratio:** Force Motors and M&M lead with 1.49. Maruti Suzuki (0.87) and Tata Motors (0.61) operate on leaner working capital models.
* **Quick Ratio:** M&M (1.16) and Hyundai (1.08) show the strongest immediate liquidity buffers.

## Efficiency & Turnover Ratios
* **Stock Turnover (STR):** Maruti Suzuki leads with 23.47, turning inventory every 15 days. Force Motors ranks lowest at 5.07.
* **Debtors Turnover (DTR):** Force Motors is highly efficient at 45.93, while M&M has the lowest ratio (19.93) due to longer credit terms.

## Profitability Metrics
* **Gross Profit Margin:** Tata Motors leads at 31.01%, driven by a premium SUV and EV product mix.
* **Net Profit Margin:** M&M leads with 10.39%, followed by Force Motors (9.99%) and Maruti Suzuki (9.62%).
* **Return on Capital Employed (ROCE):** Hyundai exhibits exceptional capital efficiency at 41.15%. Maruti Suzuki ranks lower at 19.59% due to its massive investment base.
* **Operating Expense Ratio:** M&M (87.08%) and Force Motors (87.16%) show the best operational efficiency.

## Solvency & Shareholder Returns
* **Debt-to-Equity:** All companies remain below 1.0. Maruti Suzuki is most conservative (0.34), while Tata Motors is the most leveraged (0.96).
* **Earnings Per Share (EPS):** Force Motors reported the highest EPS at ₹607.13 due to a smaller share base.
* **Dividend Payout:** Tata Motors returns the highest portion of income to shareholders (42.37%).

## Key Recommendations
* **Liquidity:** Tata Motors and Maruti should strengthen quick ratios to buffer EV transition risks.
* **Efficiency:** Force Motors should implement just-in-time manufacturing to improve inventory velocity.
* **Strategy:** Companies should maintain liquidity buffers for high R&D cycles as the industry shifts toward EVs and hybrids.
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