# SHORT TERM SOLVENCY ANALYSIS OF LEAD AUTOMOBILE PLAYERS IN INDIA PART 3

2. OBJECTIVES OF STUDY
. To find out the amount of current assets and current liabilities in Maruti Suzuki from 2010-11 to 2014-15.
. To find out the amount of current assets and current liabilities in Tata Motors from 2010-11 to 2014-15.
. To calculate and compare the current ratio of Maruti Suzuki and Tata Motors during 2010-2011 to 2014-15.
. To test whether there is a significant difference between current ratio of Maruti Suzuki and Tata Motors with the help of t test during 2010-11 to 2014-15.
3. RESEARCH METHODOLOGY
The study is primarily based on secondary data. The relevant information in this regard has been collected from various sources like articles, websites, journals,textbooks, and annual reports of Maruti Suzuki and Tata Motors., The analysis is carried out through various statistical tools like percentage, average, t test etc.
4. ANALYSIS AND INTERPRETATION
In order to analyze short-term solvency of Maruti Suzuki and Tata Motors current ratio has been calculated and is explained with the help of table and graphical representation followed by a comparative analysis.The above table no. 1 and figure no. 1 exhibits that current ratio of “Maruti Suzuki” stood at an average of 1.48:1 for the study period 2010-11 to 2014-15. The current ratio of the company fluctuates from 0.93:1 to 1.76:1 during the study period. In the year 2013-14 the company is able to maintain highest current ratio of 1.76:1 and the lowest current ratio was witnessed in the year 2014-15. During the entire study period, it was in 2013-14 when the company had maximum amount of current assets i.e. Rs. 14171.7 crores, and the maximum amount of current liabilities was witnessed in the year 2014-15 i.e. Rs. 8823.00 crores. The company’s current assets and current liabilities stood at an average of Rs. 10145.94 crores and Rs. 6870.50 crores respectively. A current ratio of 2:1 is considered to be satisfactory, which means that current assets are twice the current liabilities. If current assets are less than, twice the current liabilities it reflects that a firm may find it difficult to pay its current liabilities on time. Since, the current ratio of Maruti Suzuki stood at an average of 1.48:1 it reveals that the company’s current ratio is less than standard and the company needs to improve it.