INVESTIGATING PROFITABILITY RATIOS OF S&P BSE AUTO INDEX COMPANIES: AN EMPIRICAL PERSPECTIVE

Abstract

Creating a profit is the main objective of any company endeavor. Long-term survival of the business is contingent upon profitability. Therefore, calculating profitability both now and in the past is crucial. Ratios of profitability quantify how well a company manages its assets. Numerous stakeholders, including creditors, investors, staff members, management, and others, are curious about the company's economic status. Reduced cash flow and liquidity issues will result from the company's inability to report a sufficient rate of profit. This essay uses profitability ratios to examine the financial performance of a few Indian automakers. One Way ANOVA was also employed in the study. According to the survey, when compared to similar companies, Cummins India and Bajaj Auto had the highest GPM, OPM, and NPM scores. MRF displayed the highest EPS. Motherson Sumi shown an increasing tendency in return on long- term investments. Additionally, it is discovered that Ashok Leyland and Tata Motors have demonstrated declining trend performance in terms of reporting net profit.