Effectiveness of Financial Diagnostics of Ashok Leyland Ltd: A Ratio-Based Evaluation
Mr. Adith Raj. M1, Dr. J. Rani2
MBA Student, School of Management, Sathyabama Institute of Science and technology, Chennai, Tamil Nadu, India600119
MBA., MPhil., PhD, Assistant Professor, Sathyabama Institute of Science and technology, Chennai, Tamil Nadu, India600119
ABSTRACT
This study aims to evaluate the financial strength of Ashok Leyland Ltd. through a comprehensive ratio analysis approach. By examining key financial ratios—such as profitability, liquidity, solvency, and efficiency—this research provides a data-driven insight into the company’s performance over recent fiscal years. The findings reveal trends in operational efficiency, short-term financial health, and long-term sustainability, allowing stakeholders to assess the company's overall financial stability and strategic positioning in the Indian automotive industry. The ratio-based analysis proves effective in unveiling the strengths and potential areas for improvement, offering a valuable tool for investors, analysts, and management decision-making.
This research paper critically examines the financial strength of Ashok Leyland Ltd. through a ratio-based analytical framework. Utilizing key financial indicators—namely liquidity, profitability, solvency, and efficiency ratios—the study offers an in-depth evaluation of the company’s financial performance over a defined period. The analysis aims to unveil underlying trends and patterns that reflect the company's operational and fiscal health, enabling a holistic understanding of its financial robustness. The results demonstrate the effectiveness of ratio analysis as a diagnostic tool, aiding stakeholders in making informed decisions regarding investment, strategic planning, and performance benchmarking within the competitive landscape of the Indian commercial vehicle sector.
Keywords: Ashok Leyland Ltd, Financial Ratio Analysis, Liquidity Ratios, Financial Strength, Investment Analysis,
Indian Commercial Vehicle Sector
