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    Solvency PPT

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    RITU SINHA MBA 2019-21 (Kolkata)
    The document compares the debt equity ratios and long term debt equity ratios of several automobile companies in India. It shows that Maruti Suzuki has the lowest ratios of 0.001 for both metrics, indicating it has very low debt compared to its equity. This allows it to cover its interest expenses easily and makes it a safer investment for lenders. In contrast, Tata Motors has the highest ratios, which could be a cause for concern if not addressed by reducing long term debt.

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    Solvency PPT

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    RITU SINHA MBA 2019-21 (Kolkata)
    23 views1 page
    The document compares the debt equity ratios and long term debt equity ratios of several automobile companies in India. It shows that Maruti Suzuki has the lowest ratios of 0.001 for both metrics, indicating it has very low debt compared to its equity. This allows it to cover its interest expenses easily and makes it a safer investment for lenders. In contrast, Tata Motors has the highest ratios, which could be a cause for concern if not addressed by reducing long term debt.

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    The document compares the debt equity ratios and long term debt equity ratios of several automobile companies in India. It shows that Maruti Suzuki has the lowest ratios of 0.001 for both metrics, indicating it has very low debt compared to its equity. This allows it to cover its interest expenses easily and makes it a safer investment for lenders. In contrast, Tata Motors has the highest ratios, which could be a cause for concern if not addressed by reducing long term debt.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    23 views1 page

    Solvency PPT

    Uploaded by

    RITU SINHA MBA 2019-21 (Kolkata)
    The document compares the debt equity ratios and long term debt equity ratios of several automobile companies in India. It shows that Maruti Suzuki has the lowest ratios of 0.001 for both metrics, indicating it has very low debt compared to its equity. This allows it to cover its interest expenses easily and makes it a safer investment for lenders. In contrast, Tata Motors has the highest ratios, which could be a cause for concern if not addressed by reducing long term debt.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 1

    SOLVENCY RATIO

    Debt Equity Ratio Long Term Debt Equity Ratio


    Maruti Suzuki 0.001 Maruti Suzuki
    0.001
    Ashok Leyland 0.05 Ashok Leyland
    0.04
    Bajaj Auto 0.001 Baja Auto
    0.001
    Hero Motorcop 0.001 Hero Motorcop
    0.001

    Mahindra & Mahindra 0.07 Mahindra & Mahindra


    0.06
    Tata Motors
    Tata Motors 0.79 0.63
    0 0.1 0.2 0.3 0.4 0.5 0.6 0.7
    0 0.2 0.4 0.6 0.8 1

    DEBT EQUITY RATIO LONG TERM DEBT EQUITY RATIO


    In MARUTI’s case, its interest is excessively covered Having the long term debt to total asset ratio as a
    by its earnings. Lenders may be less hesitant to lend high percentage should be worrying factor for the
    out more funding as MARUTI’s high interest coverage firm and the company should look in to it and
    is seen as responsible and safe practice. So Maruti determine the reason of the high percentage and
    Suzuki with debt ratio 0.001 is doing well compared try to minimize it as much as possible. Maruti
    to the median ratio 0.05 for Ashok Leyland. Suzuki at 0.001 long term debt equity ratio is doing
    decent compared to the median value 0.04 for
    Ashok Leyland.

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