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ON RATIO COMPARISON OF
TATA MOTORS FOR 2007 AND 2008.
2008 2007
For 2008-
Avg. daily cash oper. Exp - Total cash exp./ 365
67,663.1/ 365 = 185.3
Interval measure - 192,673.5 - 32,946.4 / 185.3 = 862 days
For 2007
Avg. daily cash oper. Exp - 56,050.6/ 365 = 153.5
Interval measure - 162,779.2- 31,669.0 / 153.5 = 854 days
For 2008
2008 2007
Earning before tax 30,448.3 31,326.4
Add- Interest 9,127.2 4,650.6
39575.5 35977
In 2008, the long term financial position getting strong than 2008. Capability of
paying long term debt. is increases. As we seen, debt ratio increases. And the
contribution of debt is increases in 2008 than 2007. and the part of share capital is
also increases in total capital employed than 2007. it means, company is increasing
its capital through shares.
Activity Ratio
Inventory Turnover Ratio:- Cost of goods sold / Inventory
(2008) (2007)
Cost of goods sold 254,571.5 234,753.6
Inventory 32,946.4 31,669.0
In profitability ratio, the gross profit ratio is increasing in 2008 than 2007. it
means its profit is growing in sales. But company’s EBIT ratio is decreasing means
interest on capital and tax rate is increased in 2008 than 2007 which is responsible
in decreasing its PAT. And company’s return on investment is decreased that
indicates that its earning on capital employed is decreased in 2008 than 2007. and
its ROE is also decreases means its PAT on its share capital is decreased.