1. Profitability Ratio Analysis

2. Profit Margin Assets Turnover
The profit margin of Maruti Suzuki in 2022 is 4.39%. The assets turnover of Maruti Suzuki in 2022 is 1.56
Average 2021-2018 is 8.50% Average 2021-2018 is 1.64
Here, we can see that the profit margin of Maruti Suzuki is Here we can see that Company is able to Maintain assets turnover
declining year by year from 9% to 4.39%. ratio >1 which is good for the company.
But their competitor Tata Motors’ average of 5 years is Where Tata Motors’ assets turnover ratio in 2022 is 0.8.
-4.12%.
2022 2021 2020 2019 2018
Net Profit 3,879.50 4,389.10 5,677.60 7,650.60 7,880.70
Sales 88,329.80 70,372.00 75,660.00 86,068.50 82,041.10
3,879.50 4,389.10 5,677.60 7,650.60 7,880.70
88,329.80
70,372.00
75,660.00
86,068.50
82,041.10
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Net Profit Sales
2022 2021 2020 2019 2018
Sales 88,329.80 70,372.00 75,660.00 86,068.50 79,809.40
Average assets 79,350.90 73016 80,864.25 82938.95 39,904.70
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Asssets Turnover
Sales Average assets

3. Returns On Assets Return On Equity
The return on assets ratio of Maruti Suzuki in 2022 is 0.068 The return on assets ratio of Maruti Suzuki in 2022 is 7.01%
Average 2021-2018 is 0.3175 Average 2021-2018 is 13.56%
Here we can analyze that their return on assets is decreasing Here we can analyze that their return on Equity is decreasing
ROA tells us that the company is efficient at generating profit from 18.5% to 7.01% in the last 5 years this tells us that the ability
from assets. of management to generate income from equity available is declining.
Where Tata motors’ ROA is -3.48
2022 2021 2020 2019 2018
Net profit 3,879.50 4,389.10 5,677.60 7,650.60 7,880.70
Average assets 4,134.30 5033.35 6,664.10 7765.65 3,940.35
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ROA
Net profit Average assets
2022 2021 2020 2019 2018
Net profit 3,879.50 4,389.10 5,677.60 7,650.60 7,880.70
Total Eqiuty 55,333.50 52,500.60 49,413.00 47,092.10 42,559.40
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ROE
Net profit Total Eqiuty

4. Earning Per Share
A high EPS means that the company performed well during the earnings period, and investors are willing to pay more for its
shares, making them more valuable to existing investors ones. Lower or decreasing EPS gives a poor indication of the health
of the company and gives a lower return to the shareholders.
• A decrease in EPS can occur due to a decrease in income.
• It is also possible that the cause of the decline is not due to a decline in earnings but rather an increase in shares, when the
company issue more shares e.g, public issue, or right issue.
By these ratios, we can conclude that the company’s profitability is decreasing year by year.
They should focus on –
• Reducing cost
• Increasing turnover
• Increasing productivity
• Increasing efficiency
128.46 in 2022
211.87 in 2021-2018