EXAMINING THE FINANCIAL PERFORMANCE OF TYRE MANUFACTURING COMPANIES IN INDIA: A CASE STUDY
EXAMINING THE FINANCIAL PERFORMANCE OF TYRE MANUFACTURING COMPANIES IN INDIA: A CASE STUDY

Summary/Abstract: INDIA IS THE FOURTH BIGGEST TYRE MAKER GLOBALLY AFTER CHINA, EUROPE AND THE UNITED STATES. GROWING DEMAND FOR AUTOMOBILES HAS MADE THE INDIAN TYRE INDUSTRY FUNDAMENTALLY STRONG. EQUITY INVESTORS ARE ALSO INVESTING THEIR MONEY IN THE TYRE SECTOR STOCKS. HOWEVER, MANY SECTORS ARE UNDERPERFORMING DUE TO THE GLOBAL PANDEMIC AND ECONOMIC SLOWDOWN. THIS STUDY USES RATIO ANALYSIS TO EXAMINE THE PERFORMANCE OF TYRE SECTOR COMPANIES IN INDIA. FROM THE ANALYSIS, WE FOUND THAT IN THE YEAR 2020, BECAUSE OF COVID-19 PANDEMIC, THE PERFORMANCE OF MANY COMPANIES HAS AFFECTED, AND THE INDUSTRY'S DEBT INCREASED. DEBT EQUITY RATIOS OF ALL COMPANIES EXCEPT BALAKRISHNA ARE LESS THAN ONE, WHICH IS A GOOD SIGN. THE NET PROFIT AND OPERATING PROFIT RATIO OF BALAKRISHNA COMPANY ARE VERY HIGH COMPARED TO OTHER SELECTED COMPANIES. HOWEVER, THE ASSET TURNOVER AND FIXED ASSET TURNOVER RATIOS OF GOODYEAR COMPANY ARE BETTER THAN ALL OTHER SELECTED COMPANIES. REGARDING WORKING CAPITAL, THE INVENTORY TURNOVER OF RUBFILA AND THE DEBTOR TURNOVER RATIO OF APOLLO COMPANY ARE BETTER THAN OTHER COMPANIES.

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