A Comparative Study of the Financial Performance of Mahindra & Mahindra ltd and Maruti Suzuki ltd and Their Role in the Sustainability of the Automobile Sector of India

Purpose of the study: Financial performance analysis is the process of identifying a company's operational and financial features from its accounting and financial records. Determining the effectiveness and performance of the firm's management, as shown by the financial records and reports, is the aim of such an examination. In terms of creating jobs, producing goods, and selling them, the automobile industry is crucial to the Indian economy. A significant factor in macroeconomic growth is the automobile industry. The purpose of this study is to compare the financial performance of Mahindra & Mahindra Ltd. and Maruti Suzuki Ltd. using ratios and to assess both companies’ contributions to India's automobile sector. The study is based on secondary data gathered from yearly reports for the five years 2016–17 to 2020–21. Methodology: This study aims to use ratio analysis to compare and analyze the financial performance of Mahindra & Mahindra Limited and Maruti Suzuki India Ltd over the study period. Secondary data has been used. The analysis is carried out by making use of various ratios, and appropriate statistical tools like mean, standard deviation, C.V., etc. Main Findings: Maruti Suzuki Limited has a better long-term solvency position, overall efficiency, and profitability, whereas Mahindra & Mahindra Limited has a better short-term solvency position. Novelty of the study: The study will help the readers in understanding the solvency, efficiency, and profitability of selected companies.