BAJAJ AUTO LTD.

ANALYSIS OF FINANCIALS STATEMENTS.

 Financial analysis is the process of evaluating businesses, projects, budgets, and other finance-related transactions to
determine their performance and suitability. Typically, financial analysis is used to analyze whether an entity is stable,
solvent, liquid, or profitable enough to warrant a monetary investment.
 One of the main tasks of a financial analyst is to perform an extensive analysis of a company’s financial statements. This
usually begins with the income statement but also includes the balance sheet and cash flow statement.
 The main goal of financial analysis is to measure a company’s financial performance over time and against its peers.
 This analysis can then be used to forecast a company’s financial statements into the future.

By the analysis of Financial Statements of Bajaj Auto Ltd., we conclude that:-

- In the F.Y. 2019, total turnover increased by 18.88% to Rs. 30,423.82 Crores, as compared to F.Y. 2018.
- Total operating income (net sales plus other operating income) grew by 20.24% to Rs. 32,356.30 Crores.
- Profit before tax (PBT) after exceptional items grew by 15.92% to Rs. 6,703.16 Crores.
- Profit after tax (PAT) increased by 14.92% to Rs. 4,675.18 Crores.
- Return on Equity for the year was 21.47%, which shows a growth of 0.80% compared to previous year.
- The business has 1.45 times more current assets than liabilities to covers its debts.(Current Ratio)
- Quick Ratio was 1.25 time, that typically means that business is healthy and can pay its liabilities.
- Dividend Payout Ratio was 37.14 %; generally, a dividend payout ratio of 30-50% is considered healthy.
- Debtors Day was around 31 Days; Generally speaking, you should aim to keep your debtor days under 45.
- Total Expenses Decreased by 21.48% to Rs. 27,737.54 Crores; A low OER means less money from income is
being spent on operating expenses.

- In the F.Y. 2020, total turnover Declined by 1.12% to Rs. 30,082.48 Crores, as compared to F.Y. 2019.
- Total operating income (net sales plus other operating income) declined by 1.25% to Rs. 31,950.93 Crores.
- Profit before tax (PBT) after exceptional items declined by 1.88% to Rs. 6,580.20 Crores.
- Profit after tax (PAT) increased by 9.09% to Rs. 5,099.98 Crores.
- Return on Equity for the year was 25.60 %, which shows a growth of 19.24% compared to previous year.
- The business has 1.55 times more current assets than liabilities to covers its debts.(Current Ratio)
- Quick Ratio was 1.30 time, that typically means that business is healthy and can pay its liabilities.
- Dividend Payout Ratio was 68.09%; generally, a dividend payout ratio of 30-50% is considered healthy.
- Debtors Day was around 21 Days; Generally speaking, you should aim to keep your debtor days under 45.
- Total Expenses Decreased by 2.97% to Rs. 26,913.96 Crores; A low OER means less money from income is
being spent on operating expenses.

- In the F.Y. 2021, total turnover declined by 7.33% to Rs. 27,876.30 Crores, as compared to F.Y. 2020.
- Total operating income (net sales plus other operating income) declined by 7.33% to Rs. 29,258.95 Crores.
- Profit before tax (PBT) after exceptional items declined by 9.74% to Rs. 5,939.00 Crores.
- Profit after tax (PAT) decreased by 10.69% to Rs. 4,554.59 Crores.
- Return on Equity for the year was 18.07%, which shows that Owner's equity decreases of 29.39% compared
to previous year.
- The business has 2.51 times more current assets than liabilities to covers its debts.(Current Ratio)
- Quick Ratio was 2.25 time, that typically means that business is healthy and can pay its liabilities.
- Dividend Payout Ratio was 88.95%; generally, a dividend payout ratio of 30-50% is considered healthy.
- Debtors Day was around 36 Days; Generally speaking, you should aim to keep your debtor days under 45.
- Total Expenses Decreased by 7.39% to Rs. 24,923.84 Crores; A low OER means less money from income is
being spent on operating expenses.

- In the F.Y. 2022, total turnover increased by 19.40% to Rs. 33,283.99 Crores, as compared to F.Y. 2021.
- Total operating income (net sales plus other operating income) grew by 19.43% to Rs. 34,945.40 Crores.
- Profit before tax (PBT) after exceptional items grew by 9.54% to Rs. 6,505.33 Crores.
- Profit after tax (PAT) increased by 10.9% to Rs. 5,018.87 Crores.
- Return on Equity for the year was 18.82%, which shows that Owner's equity decreases of 4.13% compared to
previous year.
- The business has 2.13 times more current assets than liabilities to covers its debts.(Current Ratio)
- Quick Ratio was 1.87 time, that typically means that business is healthy and can pay its liabilities.
- Dividend Payout Ratio was 80.72%; generally, a dividend payout ratio of 30-50% is considered healthy.
- Debtors Day was around 17 Days; Generally speaking, you should aim to keep your debtor days under 45.
- Total Expenses Grew by 19.32% to Rs. 29,738.57 Crores; An increase in operating expenses means less
profit for a business.