Liqudity and Financial Health Analysis of Selected Commercial Vehicle Manufacturing Firms in India

Resumen

The commercial vehicle industry is one of the core industries which determine the nation’s economic growth. This segment is the seventh largest producer of commercial vehicle in the world and anticipated to march towards fifth position by year 2022. As a result it is incredibly important to administer the funds in a competent way. It is apparent to track the growth of the industry through the lens of financial management. Since, it is important to manage the funds of the business in an effective manner.  Hence, the financial management both long term and short term comes into the picture. The financial management can be scrutinized through the sound analysis of the liquidity, solvency and financial health. Keeping this presumption in mind, the researcher is interested to undertake this study to analyse the liquidity, solvency and financial health of selected commercial vehicle manufacturing firms in India. The important statistical tool Ratio analysis and Z-Score model were employed by the researcher to analyse the ten years financial data of chosen five NSE and BSE listed commercial vehicle manufacturing firms in India. The core findings of the study comprises poor liquidity management of all firms, better solvency management in SML and EML and the financial health is poor in all firms except EML.