Comparative Analysis of Cash Flow Statements: A Study of Tata Motors Ltd and Maruti Suzuki India Ltd

Authors: Shipra Gupta, Gunjan Agrawal

Country: India

Full-text Research PDF File:   View   |   Download

Abstract: The cash flow statement displays the financial inflows and outflows, including cash equivalents, resulting from the different operations of a business during a specific timeframe. It offers insights into historical fluctuations in cash and cash equivalents by classifying cash flows into operating, investing, and financing activities. Companies are required to create a statement of cash flows and display it for each accounting period when presenting the financial statements. This article does a comparative analysis of the cash flow statements of two prominent Indian automobile firms, Tata Motors Ltd and Maruti Suzuki India Ltd, in order to examine and evaluate their progress during the previous five years. Horizontal Analysis is employed due to its ability to facilitate the identification of trends and growth patterns in financial statements. The horizontal Analysis of the cash flow statements reveals that Tata Motors Ltd exhibits superior growth rates in operating cash flows and investing cash flows compared to Maruti Suzuki India Ltd. However, when it comes to financing cash flows, Maruti Suzuki India Ltd demonstrates a more positive growth pattern in comparison to Tata Motors Ltd.

Keywords: Cash & Cash Equivalents Horizontal Analysis, Operating Cash Flows, Investing Cash Flows, Financing Cash Flows

Paper Id: 230410

Published On: 2023-02-14

Published In: Volume 11, Issue 1, January-February 2023

Cite This: Comparative Analysis of Cash Flow Statements: A Study of Tata Motors Ltd and Maruti Suzuki India Ltd - Shipra Gupta, Gunjan Agrawal - IJIRMPS Volume 11, Issue 1, January-February 2023.

Share this