CHAPTER 1

ANNUAL REPORT

INTRODUCTION
In financial accounting a ratio analysis is a financial statement that shows a company’s
incoming and outgoing cash during a time period. Cash is the lifeblood of your company. The
ratio analysis reports your business source and uses of cash the beginning and ending values for
cash and cash equivalents each year. It also includes the combined total change in cash and cash
equivalents from sources and uses of cash.

Ratio analysis format planning involves forecasting and tabulating all significant cash
inflows and analysing the timing of expected payments in detail. We have highly skilled ratio
analysis financing professionals prepare comprehensive periodic ratio analysis projections that
can assist you in tasks such as budgeting, business planning and fund raising.

The present study on ratio analysis of MARUTI SUZUKI is taken up with an objective to
get an in-depth knowledge of the ratio analysis concept and study the ratio analysis of MARUTI
SUZUKI.

OBJECTIVES OF STUDY

 To analyze balance sheet of an Organization.

 To analyze profit and loss of an Organization.
 To analyze the investment portfolio of an Organization.
 To analyze profitability ratios, asset turnover ratios, structural ratios and liquidity ratios.

RESEARCH METHODOLOGY
Research in common parlance refers to a research for knowledge. One can also define
research as a scientific and systematic search for patient information on a specific topic.Research
is an academic activity as such the terms should be used in a technical sense.
Research refers to:

 Defining and reducing problems.

 Collecting, organizing and evaluating data.
 Formulating hypothesis or suggested solution.
 Making deductions and reaching conclusions at last they carefully testing conclusions to
determine whether they are fit the formulating hypothesis.

RESEARCH PROCESS

Research process consists of series of actions or steps to effectively carry out research. The steps
are as follows:

 Specifying research objective

 Preparing a list of needed information
 Designing the data collection project
 Select a sample
 Organizing and carrying data and reporting the findings.

COLLECTION OF DATA

SOURCES OF DATA

The source of data means from where we have to get the data. There are mainly two
sources of data. They are:

PRIMARY DATA:

The primary data are those data which are collected from a fresh and for the first time and
thus happens to be original in character. We collect primary data by observation method,
interview method through questionnaires and through schedules.

SECONDARY DATA:

The secondary data are those data which have already collected from someone else and
which have already been passed through statistical process.
 We get published data as maintained by various departments like personnel departments,
EDP department etc. of a concern or other publications like annual report, magazines etc.

STATISTICAL TOOLS USED IN ANALYZING

THEINFORMATION:

1. The MICROSOFT EXCEL 2007 is useful to calculate the ratio and to draw the charts.
2. The Microsoft word 2007 is useful to set the all information into one book or document.

Limitations of study:

 There is not accurate information provided by the management.

 Information is not sufficient for study which is given by the company.
 Limited period which is not sufficient for the study.
 Sample size is too small not represents the whole system.
 CHAPTER 2
JOURNEY OF MARUTHI SUZUKI

Feb 1981 - The result, Maruti Suzuki India Limited (MSIL) was born in February 1981.
Maruti Suzuki started as a government company, with Suzuki as a minor partner, to make a
people's car for middle class India. Over the years, the company's product range has widened and
ownership has changed hands. A subsidiary of Suzuki Motor Corporation (SMC) of Japan, the
Maruti Suzuki India Limited headquartered in Delhi, running with 3 vehicle assembly plants at
Gurgaon and 1 vehicle assembly.

1983 Dec 14, 1983 - Maruti completes 25 years Maruti Suzuki recently completed 25
years. On December 14, 1983, the first Maruti 800, India's iconic car, rolled off
the assembly line at the company's Gurgaon plant. Since then, Maruti Suzuki has
produced and sold around
2000 Nov 21, 2000 - Also, Suzuki is registered under trademark laws in various
countries. They hybrid trademark 'Maruti Suzuki' has been used on products of
the joint venture company in India. The Indore-based World Information Pages
had claimed that the word Maruti is name of an Indian god.
2002 Jan 25, 2002 - The rights issue will thus witness Suzuki becoming the largest
shareholder in Maruti. In return for this, the Government will get a renunciation
premium for forgoing its portion of the rights in favour of Suzuki as well as
control premium for giving up majority control in Maruti to the .
2003 May 31, 2003 - Osamu Suzuki, chairman & CEO, Suzuki Motor Corporation,
said: "Maruti is controlled by Suzuki and will continue to be managed by Suzuki
in India." Responding to queries on the future control of Maruti, Suzuki said:
"General Motors has a 20 per cent stake in Suzuki, Japan.
2004 May 2004 - Maruti Suzuki's all-conquering hatchback Swift has just added
another feather to its crown by becoming the fastest car model to reach the 3-lakh
milestone. Launched in May 2005, the sporty car achieved this feat in only three
years and eight months. On the occasion .
2005 June 26, 2005 -Maruti Suzuki's all conquering hatchback Swift has just added
another feather to its crown by becoming the fastest car model to reach the 3-lakh
milestone. Launched in May 2005, the sporty car achieved this feat in only three
years and eight months. On the occasion.
Nov 13, 2006 - The former India bureaucrat is managing director of Maruti
2006 Suzuki, the Indian subsidiary of Suzuki Motor, the Japanese automaker's biggest
operation outside of ... Such are the current competitive dynamics facing Maruti
Suzuki in one of the fastest-growing auto markets in the world.
2007 Dec 11, 2007 - India's rapidly expanding automobile market is key for Suzuki, its
chairman has often said. Maruti Suzuki, in which Suzuki owns a 54.2% stake, is
expanding its line up and dealer network here. Suzuki also faces competition from
global automakers like Toyota (nyse: TM - news - people ).
2008 Apr 25, 2008 - `The best year': Mr S. Nakanishi, Managing Director and CEO,
Maruti Suzuki India Ltd, addressing a press conference in the Capital on ...
Announcing the results, Mr Shinzo Nakanishi, the company's Managing Director,
said, "The year 2007-08 was the best year in the history of Maruti."
2009 Jul 1, 2009 - MUMBAI, July 1 (Reuters) - Maruti Suzuki, India's top car maker,
said its car sales rose 22.6 percent in June, up for the six month in a row, 'This
month's export numbers are the highest ever monthly export volume in the
company's history,' Maruti said in a statement on Wednesday.
2011 Cumulative Output Reaches 10 million units.
2012 Deadly Riot breaks out at Manesar Plant.
2015 Cumulative Output Reaches 15 million units.
2017 Launches Premium Car Dealership NexaGujart Factory begins Operating.
 VISION & VALUES

VISION VALUES

“The leader in the Indian Automobile • CUSTOMER OBSESSION

Industry, creating customer delight and • FAST, FLEXIBLE & FAST MOVER
shareholders’ wealth A pride of India.” • INNOVATION AND CREATIVITY
• NETWORKING AND PARTNERSHIP
• OPENNESS AND LEARNING

MISSION

1. Production of fuel-efficient vehicles to conserve scare resources.

2. Production of large number of motor vechicles which was necessary for economic
growth.
3. Market Penetration, Market development and diversification.
4. Partner relationship Management, Value chain, value delivery network.
5. Modernization of the Indian automobile industry.

BOARD OF DIRECTORS

Name Designation Name Designation

Managing Director &

R C Bhargava Chairman / Chair Person Shinzo Nakanishi
CEO
Shuji Oishi Director Tsuneo Ohashi Director
KeilchiAsai Director Osamu Suzuki Director
Kenichi Ayukawa Director Amal Ganguli Director
Manvinder Singh
Pallavi Shroff Director Director
Banga
Davinder Singh
Director Hirofumi Nagao Director
Brar
PRODUCTS

 Maruti 800.
 Maruti Alto.
 Maruti Grand Vitara XL-7.
 Maruti Gypsy King.
 Maruti Omni.
 Maruti Suzuki SX4.
 Maruti Swift.
 Maruti Versa.
 MarutiVitara.
 Maruti Wagon-R.
 Maruti Zen.
 CHAPTER 3
THEORITICAL BACKGROUND

RATIO ANALYSIS

A ratio is a comparison of two numbers by division. It refers to the systematic use of

ratios to interpret the financial statements in terms of the operating performance and financial
position of a firm. It involves comparison for a meaningful interpretation of the financial
statements.

In view of the needs of various uses of ratios the ratios, which can be calculated from the
accounting data are classified into the following broad categories

A. Liquidity Ratio
B. Turnover Ratio
C. Solvency or Leverage ratios
D. Profitability ratios
A. LIQUIDITY RATIO

It measures the ability of the firm to meet its short-term obligations that is capacity of the
firm to pay its current liabilities as and when they fall due. Thus these ratios reflect the short-
term financial solvency of a firm. A firm should ensure that it does not suffer from lack of
liquidity. The failure to meet obligations on due time may result in bad credit image, loss of
creditors confidence, and even in legal proceedings against the firm on the other hand very high
degree of liquidity is also not desirable since it would imply that funds are idle and earn nothing.
So therefore it is necessary to strike a proper balance between liquidity and lack of liquidity.

The various ratios that explains about the liquidity of the firm are

1. Current Ratio
2. Acid Test Ratio / quick ratio
3. Absolute liquid ration / cash ratio
1. CURRENT RATIO:
The current ratio measures the short-term solvency of the firm. It establishes the
relationship between current assets and current liabilities. It is calculated by dividing current
assets by current liabilities.
Current Ratio = Current Asset

Current Liabilities

Current assets include cash and bank balances, marketable securities, inventory, and
debtors, excluding provisions for bad debts and doubtful debtors, bills receivables and prepaid
expenses. Current liabilities includes sundry creditors, bills payable, short- term loans, income-
tax liability, accrued expenses and dividends payable.

2. ACID TEST RATIO / QUICK RATIO

It has been an important indicator of the firm’s liquidity position and is used as a
complementary ratio to the current ratio. It establishes the relationship between quick assets and
current liabilities. It is calculated by dividing quick assets by the current liabilities.
Acid Test Ratio = Quick Assets

Current liabilities

Quick assets are those current assets, which can be converted into cash immediately or
within reasonable short time without a loss of value. These include cash and bank balances,
sundry debtors, bill’s receivables and short-term marketable securities.

3. ABSOLUTE LIQUID RATION / CASH RATIO

It shows the relationship between absolute liquid or super quick current assets and
liabilities. Absolute liquid assets include cash, bank balances, and marketable securities.

Absolute liquid ratio = Absolute liquid assets

Current liabilities
B.TURNOVER RATIOS

Turnover ratios are also known as activity ratios or efficiency ratios with which a firm
manages its current assets. The following turnover ratios can be calculated to judge the
effectiveness of asset use.

1. Inventory Turnover Ratio

2. Debtor Turnover Ratio
3. Creditor Turnover Ratio
4. Assets Turnover Ratio

1. INVENTORY TURNOVER RATIO

This ratio indicates the number of times the inventory has been converted into sales
during the period. Thus it evaluates the efficiency of the firm in managing its inventory. It is
calculated by dividing the cost of goods sold by average inventory.
Inventory Turnover Ratio = Cost of goods sold

Average Inventory
The average inventory is simple average of the opening and closing balances of
inventory.(Opening + Closing balances / 2). In certain circumstances opening balance of the
inventory may not be known then closing balance of inventory may be considered as average
inventory.

2. DEBTOR TURNOVER RATIO

This indicates the number of times average debtors have been converted into cash during
a year. It is determined by dividing the net credit sales by average debtors.

Debtor Turnover Ratio = Net Credit Sales

Average Trade Debtors

Net credit sales consist of gross credit sales minus sales return. Trade debtor includes sundry
debtors and bill’s receivables. Average trade debtors (Opening + Closing balances / 2)

When the information about credit sales, opening and closing balances of trade debtors is not
available then the ratio can be calculated by dividing total sales by closing balances of trade
debtor.
Debtor Turnover Ratio = Total Sales

Trade Debtors

3. CREDITOR TURNOVER RATIO

It indicates the number of times sundry creditors have been paid during a year. It is
calculated to judge the requirements of cash for paying sundry creditors. It is calculated by
dividing the net credit purchases by average creditors.

Creditor Turnover Ratio = Net Credit Purchases

Average Trade Credit

Net credit purchases consist of gross credit purchases minus purchase return. When the
information about credit purchases, opening and closing balances of trade creditors is not
available then the ratio is calculated by dividing total purchases by the closing balance of trade
creditors.

Creditor Turnover Ratio = Total purchases

Total Trade Creditors

4. ASSETS TURNOVER RATIO

The relationship between assets and sales is known as assets turnover ratio. Several assets
turnover ratios can be calculated depending upon the groups of assets, which are related to sales.

a) Total asset turnover.

b) Net asset turnover
c) Fixed asset turnover
d) Current asset turnover
e) Net working capital turnover ratio
a) TOTAL ASSET TURNOVER:

This ratio shows the firm’s ability to generate sales from all financial resources
committed to total assets. It is calculated by dividing sales by total assets.
Total asset turnover = Total Sales

Total Assets

b) NET ASSET TURNOVER:

This is calculated by dividing sales by net assets.

Net asset turnover = Total Sales

Net Assets

Net assets represent total assets minus current liabilities. Intangible and fictitious assets
like goodwill, patents, accumulated losses, deferred expenditure may be excluded for calculating
the net asset turnover.

C) FIXED ASSET TURNOVER

This ratio is calculated by dividing sales by net fixed assets.

Fixed asset turnover = Total Sales

Net Fixed Assets

Net fixed assets represent the cost of fixed assets minus depreciation.

d) CURRENT ASSET TURNOVER

It is divided by calculating sales by current assets

Current asset turnover = Total Sales

Current Assets

e) NET WORKING CAPITAL TURNOVER RATIO

A higher ratio is an indicator of better utilization of current assets and working capital
and vice-versa (a lower ratio is an indicator of poor utilization of current assets and working
capital). It is calculated by dividing sales by working capital.
Net working capital turnover ratio = Total Sales

Working Capital

Working capital is represented by the difference between current assets and current liabilities.

C. SOLVENCY OR LEVERAGE RATIOS

The solvency or leverage ratios throws light on the long term solvency of a firm
reflecting its ability to assure the long term creditors with regard to periodic payment of interest
during the period and loan repayment of principal on maturity or in predetermined installments at
due dates. There are thus two aspects of the long-term solvency of a firm.

a. Ability to repay the principal amount when due

b. Regular payment of the interest.
The ratio is based on the relationship between borrowed funds and owner’s capital it is computed
from the balance sheet, the second types are calculated from the profit and loss a/c. The various
solvency ratios are

1. Debt equity ratio

2. Debt to total capital ratio
3. Proprietary (Equity) ratio
4. Fixed assets to net worth ratio
5. Fixed assets to long term funds ratio
6. Debt service (Interest coverage) ratio
1. DEBT EQUITY RATIO

Debt equity ratio shows the relative claims of creditors (Outsiders) and owners (Interest)
against the assets of the firm. Thus this ratio indicates the relative proportions of debt and equity
in financing the firm’s assets. It can be calculated by dividing outsider funds (Debt) by
shareholder funds (Equity)

Debt equity ratio = Outsider Funds (Total Debts)

Shareholder Funds or Equity

The outsider fund includes long-term debts as well as current liabilities. The shareholder
funds include equity share capital, preference share capital, reserves and surplus including
accumulated profits. However fictitious assets like accumulated deferred expenses etc. should be
deducted from the total of these items to shareholder funds. The shareholder funds so calculated
are known as net worth of the business.

2. DEBT TO TOTAL CAPITAL RATIO

Debt to total capital ratio = Total Debts

Total Assets

3. PROPRIETARY (EQUITY) RATIO

This ratio indicates the proportion of total assets financed by owners. It is calculated by
dividing proprietor (Shareholder) funds by total assets.

Proprietary (equity) ratio = Shareholder funds

Total assets

4. FIXED ASSETS TO NET WORTH RATIO

This ratio establishes the relationship between fixed assets and shareholder funds. It is calculated
by dividing fixed assets by shareholder funds.
Fixed assets to net worth ratio = Fixed Assets *100

Net Worth

The shareholder funds include equity share capital, preference share capital, reserves and
surplus including accumulated profits. However fictitious assets like accumulated deferred
expenses etc. should be deducted from the total of these items to shareholder funds. The
shareholder funds so calculated are known as net worth of the business.

5. FIXED ASSETS TO LONG TERM FUNDS RATIO

Fixed assets to long term funds ratio establishes the relationship between fixed assets and
long-term funds and is calculated by dividing fixed assets by long term funds.
Fixed assets to long term funds ratio = Fixed Assets X 100

Long-term Funds
6. DEBT SERVICE (INTEREST COVERAGE) RATIO

This shows the number of times the earnings of the firms are able to cover the fixed
interest liability of the firm. This ratio therefore is also known as Interest coverage or time
interest earned ratio. It is calculated by dividing the earnings before interest and tax (EBIT) by
interest charges on loans.

Debt Service Ratio = Earnings before interest and tax (EBIT)

Interest Charges

D.PROFITABILITY RATIOS
The profitability ratio of the firm can be measured by calculating various profitability
ratios. General two groups of profitability ratios are calculated.

a. Profitability in relation to sales.

b. Profitability in relation to investments.

Profitability in relation to sales

1. Gross profit margin or ratio
2. Net profit margin or ratio
3. Operating profit margin or ratio
4. Operating Ratio
5. Expenses Ratio
1. GROSS PROFIT MARGIN OR RATIO

It measures the relationship between gross profit and sales. It is calculated by dividing
gross profit by sales.
Gross profit margin or ratio = Gross profit X 100

Net sales

Gross profit is the difference between sales and cost of goods sold.
2. NET PROFIT MARGIN OR RATIO

It measures the relationship between net profit and sales of a firm. It indicates
management’s efficiency in manufacturing, administrating, and selling the products. It is
calculated by dividing net profit after tax by sales.

Net profit margin or ratio = Earnings after tax X 100

Net Sales

3. OPERATING PROFIT MARGIN OR RATIO

It establishes the relationship between total operating expenses and net sales. It is
calculated by dividing operating expenses by the net sales.
Operating profit margin or ratio = Operating expenses X 100

Net sales

Operating expenses includes cost of goods produced/sold, general and administrative

expenses, selling and distributive expenses.

4. EXPENSES RATIO

While some of the expenses may be increasing and other may be declining to know the
behavior of specific items of expenses the ratio of each individual operating expenses to net sales
should be calculated. The various variants of expenses are
Cost of goods sold = Cost of goods sold X 100

Net Sales

Administrative Expenses Ratio = Administrative Expenses X 100

Net sales

Selling and distribution expenses ratio = Selling and distribution expenses X 100

Net sales
5. OPERATING PROFIT MARGIN OR RATIO

Operating profit margin or ratio establishes the relationship between operating profit and
net sales. It is calculated by dividing operating profit by sales.

Operating profit margin or ratio = Operating Profit X 100

Net sales

Operating profit is the difference between net sales and total operating expenses. (Operating
profit = Net sales – cost of goods sold – administrative expenses – selling and distribution
expenses.)

PROFITABILITY IN RELATION TO INVESTMENTS

1. Return on gross investment or gross capital employed
2. Return on net investment or net capital employed
3. Return on shareholder’s investment or shareholder’s capital employed.
4. Return on equity shareholder investment or equity shareholder capital employed.
1. RETURN ON GROSS CAPITAL EMPLOYED

This ratio establishes the relationship between net profit and the gross capital employed.
The term gross capital employed refers to the total investment made in business. The
conventional approach is to divide Earnings after Tax (EAT) by gross capital employed.

Return on gross capital employed = Earnings after Tax (EAT) X 100

Gross capital employed

2. RETURN ON NET CAPITAL EMPLOYED

It is calculated by dividing Earnings before Interest & Tax (EBIT) by the net capital employed.
The term net capital employed in the gross capital in the business minus current liabilities.Thus it
represents the long-term funds supplied by creditors and owners of the firm.

Return on net capital employed = Earnings before Interest & Tax (EBIT) X 100

Net capital employed

3. RETURN ON SHARE CAPITAL EMPLOYED
This ratio establishes the relationship between earnings after taxes and the shareholder
investment in the business. This ratio reveals how profitability the owners’ funds have been
utilized by the firm. It is calculated by dividing Earnings after tax (EAT) by shareholder capital
employed.
Return on share capital employed = Earnings after tax (EAT) X 100

Shareholder capital employed

4. RETURN ON EQUITY SHARE CAPITAL EMPLOYED

Equity shareholders are entitled to all the profits remaining after the all outside claims
including dividends on preference share capital are paid in full. The earnings may be distributed
to them or retained in the business. Return on equity share capital investments or capital
employed establishes the relationship between earnings after tax and preference dividend and
equity shareholder investment or capital employed or net worth. It is calculated by dividing
earnings after tax and preference dividend by equity shareholder’s capital employed.
Return on equity share capital employed

= Earnings after tax (EAT), preference dividends X 100

Equity share capital employed

EARNINGS PER SHARE

IT measures the profit available to the equity shareholders on a per share basis. It is
computed by dividing earnings available to the equity shareholders by the total number of equity
share outstanding

Earnings per share = Earnings after tax – Preferred dividends (if any)

Equity shares outstanding

DIVIDEND PER SHARE

The dividends paid to the shareholders on a per share basis in dividend per share. Thus dividend
per share is the earnings distributed to the ordinary shareholders divided by the number of
ordinary shares outstanding.

Dividend per share = Earnings paid to the ordinary shareholders

Number of ordinary shares outstanding

DIVIDENDS PAY OUT RATIO (PAY OUT RATIO)

It measures the relationship between the earnings belonging to the equity shareholders
and the dividends paid to them. It shows what percentage shares of the earnings are available for
the ordinary shareholders are paid out as dividend to the ordinary shareholders. It can be
calculated by dividing the total dividend paid to the equity shareholders by the total earnings
available to them or alternatively by dividing dividend per share by earnings per share.

Dividend payout ratio (Pay our ratio) = Total dividend paid to equity shareholders

Total earnings available to equity share holders

OR

Dividend per share

Earnings per share

DIVIDEND AND EARNINGS YIELD

While the earnings per share and dividend per share are based on the book value per
share, the yield is expressed in terms of market value per share. The dividend yield may be
defined as the relation of dividend per share to the market value per ordinary share and the
earnings ratio as the ratio of earnings per share to the market value of ordinary share.

Dividend Yield = Dividend Per share

Market value of ordinary share

Earnings yield = Earnings per share

Market value of ordinary share

PRICE EARNING RATIO

The reciprocal of the earnings yield is called price earnings ratio. It is calculated by
dividing the market price of the share by the earnings per share.

Price earnings (P/E) ratio =Market price of share

Earnings per share

 CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

1) Current ratio=current assets/current liabilities

Years Current assets Current liabilities Ratios
2013 10946.00 6727.50 1.627
2014 14171.70 8074.10 1.755
2015 8197.90 8823.00 0.929
2016 7149.50 11290.00 0.633
2017 8609.90 13231.00 0.650

25

20

15

Series1
10

0
2013 2014 2015 2016 2017

INTERPRETATION: From the above analysis we come to know that current asset ratio is high
(1.755) in 2013and least (0.633). The ratios are fluctuating from year to year.

2) Total assets turnover ratio=sales/total assets

Years Sales Total assets Ratios

2013 44400.30 26734.20 1.660
2014 44523.50 30535.70 1.458
2015 50802.20 33551.00 1.514
2016 58208.20 39195.60 1.485
2017 70314.60 50993.30 1.378
 1.8

1.6

1.4

1.2

0.8 Series1

0.6

0.4

0.2

0
2013 2014 2015 2016 2017

INTERPRETATION: The total assets turnover ratio is 1.660 in 2013 and it was decreased
continuously from year to year. In 2017 it was 1.378.

3) Working capital turnover ratio=sales/working capital

Years Sales Working capital Ratios
2013 44400.30 4218.5 10.52
2014 44523.50 6097.6 7.301
2015 58802.20 -625.1 -81.27
2016 58208.20 -4140.5 -14.05
2017 70314.60 -4621.4 -15.21
 20

0
2013 2014 2015 2016 2017
-20

-40 Series1

-60

-80

-100

INTERPRETATION: The working capital turnover ratio is high in 2013 (10.52) and least (-
81.27) in 2015.

4) Ratio of current assets to fixed assets=current assets/fixed assets

Years Current assets Fixed assets Ratios
2013 10946.00 11740.10 0.932
2014 14171.70 13411.80 1.056
2015 8197.90 14142.10 0.579
2016 7149.50 13774.70 0.519
2017 8609.90 14541.50 0.592
 1.2

0.8

0.6
Series1

0.4

0.2

0
2013 2014 2015 2016 2017

INTERPRETATION: The ratio of current assets to fixed assets is high (1.056) and least (0.519)
in 2016. The ratios are fluctuating from year to year.

5) Return on total assets ratio=net profit after tax and interest/total assets *100

Years Net profit after tax Total assets Ratios

2013 2392.10 26734.20 0.089
2014 2783.00 30535.70 0.091
2015 3711.20 33551.00 0.110
2016 4571.40 39195.60 0.116
2017 7337.70 50993.30 0.143
 0.16

0.14

0.12

0.1

0.08
Series1
0.06

0.04

0.02

0
2013 2014 2015 2016 2017

INTERPRETATION: The return on total assets is high (0.143) in 2017 and continuously
decreasing till 2017.

6) Proprietary ratio=shareholder funds/total assets

Years Shareholders’ funds Total assets Ratios

2013 18578.90 26734.20 0.694
2014 20978.00 30535.70 0.686
2015 23704.20 33551.00 0.706
2016 27007.10 39195.60 0.689
2017 36171.10 50993.30 0.709
 0.715
0.71
0.705
0.7
0.695
0.69 Series1
0.685
0.68
0.675
0.67
2013 2014 2015 2016 2017

INTERPRETATION: The proprietary ratio is high in 2017 (0.709) and least (0686) in 2014.
Ratios are fluctuating.

7) Fixed assets turnover ratio=sales/fixed assets

Years Net sales Fixed assets Ratios

2013 44400.30 11740.10 3.781
2014 44523.50 13411.80 3.319
2015 50802.20 14142.10 3.592
2016 58208.20 13774.70 4.255
2017 70314.60 14541.50 4.835
 6

3
Series1

0
2013 2014 2015 2016 2017

INTERPRETATION: The fixed assets turnover ratio is 3.781 in 2013 and it was decreased
from the year 2014-2015 and again it was increased in the year 2017 i.e. 4.835

8) Net profit ratio=net profit/net sales *100

Years Net profit Net sales Ratios

2013 42612.60 44400.30 95.97
2014 42644.80 44523.50 95.78
2015 48605.50 50802.20 95.67
2016 56350.40 58208.20 96.80
2017 66909.40 70314.60 95.15
 97

96.5

96

95.5
Series1

95

94.5

94
2013 2014 2015 2016 2017

INTERPRETATION: The net profit ratio is high (96.80) in 2016 and least (95.15) in 2017.

9) Return on proprietors funds ratio=net profit after tax/shareholder

funds *100

Years Net profit after tax Shareholders’ funds Ratios

2013 2392.10 18578.97 12.87
2014 2783.00 20978.00 13.26
2015 3711.20 23704.20 15.65
2016 4571.40 27007.10 16.92
2017 73337.70 36171.10 20.28
 25

20

15

Series1
10

0
2013 2014 2015 2016 2017

INTERPRETATION: The return on proprietors funds ratio is high (20.28) in 2017 and least
(12.87) in 2013.

STOCK PERFORMANCE:

Year Returns
2013 18.16354
2014 88.66844
2015 37.96997
2016 14.95519
2017 81.9335
2018 -10.2175
 100

80

60

40 Series1

20

0
2013 2014 2015 2016 2017 2018
-20

Year No. Of Shares

2013 19364038
2014 13443942
2015 11305478
2016 18540493
2017 12341974
2018 3584365

25000000

20000000

15000000

Series1
10000000

5000000

0
2013 2014 2015 2016 2017 2018
 CHAPTER 5
FINDINGS, SUGGESTIONS, CONCLUSION & BIBLIOGRAPHY

FINDINGS:

 From the Current ratio analysis we come to know that current asset ratio is high (1.755)
in 2013and least (0.633). The ratios are fluctuating from year to year.
 The total assets turnover ratio is 1.660 in 2013 and it was decreased continuously from
year to year. In 2017 it was 1.378.
 The working capital turnover ratio is high in 2013 (10.52) and least (-81.27) in 2015.
 The ratio of current assets to fixed assets is high (1.056) and least (0.519) in 2016. The
ratios are fluctuating from year to year.
 The return on total assets is high (0.143) in 2017 and continuously decreasing till 2017.
 The proprietary ratio is high in 2017 (0.709) and least (0686) in 2014. Ratios are
fluctuating.
 The fixed assets turnover ratio is 3.781 in 2013 and it was decreased from the year 2014-
2015 and again it was increased in the year 2017 i.e. 4.835
 The net profit ratio is high (96.80) in 2016 and least (95.15) in 2017.
 The return on proprietors funds ratio is high (20.28) in 2017 and least (12.87) in 2013.

SUGGESTIONS:

 The company should properly utilize its liquid assets by employing it in better
technologies.
 The company should maintain the current asset ratio for years by proper maintaining of
current assets and current liabilities.
 The company should improve competitiveness through improved material utilization and
reduced process cost.
 The company should reduce cost of production and also operating cost which may
ultimately increase profit.
  The company should increase the efficiencies of net working capital and maintain
adequate level of working capital.
CONCLUSION:

 Maruti Suzuki is one of the biggest collaboration that has ever taken place in Indian
automobile market.

 Suzuki brought all the technology, innovations, research and development etc..

 The smarter will certainly will be next leader, but till then…Maruti Suzuki will going to
the brand.