Maruti Suzuki

March 2023 March 2022 March 2021

Current ratio 0.58 0.99 1.15

Quick ratio 0.36 0.78 0.96

Cash ratio (%) 83.33 79.26 75.04

Source: https://www.moneycontrol.com/financials/marutisuzukiindia/ratiosVI/MS24#MS24
Interpretation (current ratio 2023)
Current ratio (2022)
 CA are (.58) times to the Cl.
 CA are (.99) times to the CL.
 CA are not enough to pay off CL.
 CA are not enough to pay off CL.
 CL are not having sufficient margin of safety.
 CL are not having sufficient margins of safety.
 Overall liquidity position not satisfactory.
 Overall liquidity position is closer to satisfactory.
Current ratio (2021)
 CA are (1.15) times to the CL.
 CA are enough to pay off CL.
 CL are having sufficient margins of safety.
 Overall liquidity position is satisfactory.

interpretation (quick ratio 2023) Quick ratio (2022)

 QA are (.36) times against 1 CL.
 QA are (.78) times against 1 CL.
 QA are not enough to pay off CL.
 QA are not enough to pay off CL.
 CL are not having sufficient margins of safety.
 CL are not having sufficient margins of safety.
 Overall liquidity position not satisfactory.
 Overall liquidity position not satisfactory.
Quick ratio (2021)
 QA are (.96) times against 1 CL.
 QA are not enough to pay off CL.
 CL are not having sufficient margins sufficient margins of safety.
 Overall liquidity position is not satisfactory.
Interpretation (cash ratio 2023)
 Company has (83.33%) cash & short-term investment to
meet up CL. cash ratio (2022)
 cash & short-term investment are enough to pay CL.
 Company has (79.26%) cash & short-term investment
 CL are having sufficient margins of safety.
to meet up CL.
 overall liquidity position satisfactory.
 cash & short-term investment are enough to pay CL.
 CL are having sufficient margins of safety.
 overall liquidity position satisfactory
Cash ratio (2021)
 Company has (75.04%) cash & short-term investment to meet up CL.
 cash & short-term investment are enough to pay CL.
 CL are having sufficient margins of safety.
 overall liquidity position satisfactory.
 Peers’: Mahindra & Mahindra(M&M)

March 2023 Mach 2022 March 2021

Current ratio 1.33 1.38 1.34

Quick ratio 0.99 1.06 1.08

Cash ratio (%) 85.21 85.28 88.33

. .
Source: https://www moneycontrol com/financials/mahindramahindra/ratiosVI/MM
Interpretation (current ratio 2023)
current ratio (2022)
 CA are (1.33) times to the Cl.  CA are (1.38) times to the Cl.
 CA are enough to pay off CL.  CA are enough to pay off CL.
 CL are having sufficient margin of safety.  CL are having sufficient margin of safety.
 Overall liquidity position satisfactory.  Overall liquidity position satisfactory.

Current ratio (2021)

 CA are (1.34) times to the Cl.
 CA are enough to pay off CL.
 CL are having sufficient margin of safety.
 Overall liquidity position satisfactory.

Interpretation (quick ratio 2023)

quick ratio (2022)
 QA are (.99) times against 1 CL.
 QA are not enough to pay off CL.  QA are (1.06) times against 1 CL.
 CL are not having sufficient margins of safety.  QA are enough to pay off CL.
 Overall liquidity position is closer to satisfactory.  CL are having sufficient margins of safety.
 Overall liquidity position is satisfactory.
quick ratio (2021)

 QA are (1.08) times against 1 CL.
 QA are enough to pay off CL.
 CL are having sufficient margins of safety.
 Overall liquidity position is satisfactory.
Interpretation (cash ratio 2023)
 Company has (85.21%) cash & short-term investment to meet up cash ratio (2022)
CL.
 cash & short-term investment are enough to pay CL.  Company has (85.28%) cash & short-term
 CL are having sufficient margins of safety. investment to meet up CL.
 overall liquidity position satisfactory.  cash & short-term investment are enough to
cash ratio (2021) pay CL.
 Company has (88.33%) cash & short-term investment to meet up  CL are having sufficient margins of safety.
CL.  overall liquidity position satisfactory
 cash & short-term investment are enough to pay CL.
 CL are having sufficient margins of safety.
 overall liquidity position satisfactory.

Comparison: After looking at the three years data of Maruti & Mahindra we can conclude that liquidity position of Mahindra
is better in compared to Maruti in given year’s data.
 March 2023 March 2022 March 2021
Roi (%)
16.40 8.35 9.74

Roe (%) 13.33 6.96 8.23

Net profit margin (%) 6.84 4.26 6.01

Source: https://www.moneycontrol.com/financials/marutisuzukiindia/ratiosVI/MS24
 Interpretation:(ROI)
 in year 2023 on invest of 100rs company earns 16.40.
 in year 2022 on invest of 100rs company earns 8.35.
 in year2021 on invest of 100rs company earns 9.74.
 increase of Roi from 2021 to 2023 shows improved profitability and efficiency.
interpretation: (ROE)
 in year 2023 on 100rs equity company earns 13.33.
 in year2022 on 100rs equity company earns 6.96.
 in year 2021 on 100rs equity company earns 8.23.
 increase of roe from 2023 to 2021 shows company is effectively utilizing its equity to generate profits.
interpretation (net profit margin)
 in year 2023 on sale of 100rs company earns 6.84.
 in year 2022 on sale of 100rs company earns 4.26.
 in year 2021 on sale of 100rs company earns 6.01.

peers: Mahindra & Mahindra

March 2023 March 2022 March 2021

Roi (%)
19.76 13.80 12.35
ROE (%)
15.10 12.66 0.77
Net profit margin (%)
7.70 8.59 0.59
Source: https://www.moneycontrol.com/financials/mahindramahindra/ratiosVI/MM

Interpretation (ROI)
 in year 2023 on invest of 100rs company earns 19.76.
 in year 2022 on invest of 100rs company earns 13.80.
 in year2021 on invest of 100rs company earns 12.35.
 increase of Roi from 2021 to 2023 shows improved profitability and efficiency.
interpretation (ROE)
 in year 2023 on 100rs equity company earns 15.10.
 in year2022 on 100rs equity company earns 12.66.
 in year 2021 on 100rs equity company earns 0.77.
 increase of roe from 2023 to 2021 shows company is effectively utilizing its equity to generate profits.
interpretation (net profit margin)
 in year 2023 on sale of 100rs company earns 7.70.
 in year 2022 on sale of 100rs company earns 8.59.
 in year 2021 on sale of 100rs company earns 0.59.

comparison: after comparison we can conclude that Mahindra & Mahindra having high profitability
position in compared to Maruti Suzuki. Mahindra is generating more profit margin as well as more Roi &
roe. For investment purpose we should choose Mahindra &Mahindra.
 Maruti Suzuki
March2023 March2022 March2021

Debt equity 0.02 0.01 0.01

Interest coverage 70.37 58.58 51.61
Proprietary ratio 0.7259 .7369 .7331

Source: https://www.moneycontrol.com/financials/marutisuzukiindia/balance-sheetVI/MS24#MS24
Interpretation (debt equity2023) Debt equity (2022)
 company is having 2 debts against 1 equity.
 Loan burden in increasing.  company is having 1 debt against 1 equity.
 Leverage is increasing.  Loan burden not increasing.
 Huge financial risk.  Leverage is not increasing.
 low financial risk.
Debt equity (2021)
 company is having 1 debt against 1 equity.
 Loan burden not increasing.
 Leverage is not increasing.
 low financial risk.
Interpretation (interest coverage2023)
 it indicates that profit is 70.37 times the interest charged.
 sign of financial stability and lower financial risk.
Interpretation (2022)
 it indicates that profit is 58.58 times the interest charged.
 sign of financial stability and lower financial risk.
Interpretation (2021)
 it indicates that profit is 51.61 times the interest charged.
 sign of financial stability and lower financial risk.
Interpretation (propriety ratio)
 it shows that 72.59% of the total asset’s are financed by insider funds and remaining 27.41% of total assets are financed by
outsider funds in 2023.
 it shows that 73.69% of the total assets are financed by insider funds and remaining 26.31% of total assets are financed by
outsider funds in 2022.
 it shows that 73.31% of the total assets are financed by insider funds and remaining 26.69% of total assets are financed by
outsider funds in 2021.

peers: Mahindra & Mahindra

March2023 March2022 March2021

Debt equity 0.11 0.17 0.21

Interest coverage 58.58 51.61
Proprietary ratio 0.7259 .7369 .7331