Product details

The fiscal years 2016-17 and 2017-18 were challenging ones for Tata Motors Limited. The transistion to BSIV emission standards, coupled by the impact of various external factors during the fiscal year 2016-17 had had its effects on the company's profitabililty during the first quarter of the fiscal year 2017-18. Following this, the management of the company initiated a turnaround during the year 2017-18 to improve Tata Motors' business performance, and this yielded positive results by the year end. However, considering the prevailing market conditions and other factors, the management of the company needed to keep a close look on the operations and focus on improving its performance during the year. TML operates in a highly dynamic and uncertain business environment. At this point, it is crucial for the creditors of a company to look at the possibility of improving business performance in the coming fiscal year 2018-19 and consider the short-term solvency of the firm. The present case study provides information regarding the composition of various current assets and current liabilities and the various financial options available for the company to meet any unexpected requirements and continue its business operations without any hurdles. The calculation of current ratio, quick ratio, and cash ratio provides insights into the liquidity position of the company.