Financial Statement of Analysis of Bajaj Automobiles

Financial Statement of Analysis of Bajaj Automobiles

NEHA SINGH

SCHOOL OF BUSINESS, GALGOTIAS UNIVERSITY

ABSTRACT

This thesis conducts an in-depth financial statement analysis of Bajaj Auto Limited, a leading manufacturer of two-wheelers and three-wheelers in India and a significant exporter in the global market. The objective of the study is to assess the financial health, operational efficiency, and strategic positioning of the company over a five-year using both qualitative and quantitative analytical tools. The research methodology incorporates ratio analysis, comparative and trend analysis, and common-size financial statements to evaluate the company’s performance across four critical dimensions: profitability, liquidity, solvency, and efficiency.

The analysis utilizes key ratios such as Return on Assets (ROA), Return on Equity (ROE), Gross and Net Profit Margins, Current Ratio, Quick Ratio, Inventory Turnover, and Debt-to-Equity Ratio. The findings suggest that Bajaj Auto has maintained a robust financial structure, supported by low debt, consistent profit margins, and efficient asset utilization. Additionally, the study explores the company’s cash flow management, dividend policy, and investment strategies, reflecting its ability to generate shareholder value and sustain growth.

The thesis also contextualizes the financial performance within broader industry and economic trends, including the impact of global supply chain disruptions, technological advancements, regulatory changes, and shifts in consumer preferences. By synthesizing financial data with strategic and industry insights, the study provides a holistic understanding of Bajaj Auto’s financial viability and competitive advantage. The conclusions drawn offer meaningful implications for investors, financial analysts, policy makers, and academic researchers interested in corporate financial analysis and strategic financial management in the Indian automotive sector.