Abstract

The trainees of an investment advisory company were given the financials of Maruti Suzuki India Limited for the financial year 2017-18 and asked to analyze the financial position of the company. Before the trainer could get down to the actual analysis procedure, one of the trainees expressed concern over the composition of the company’s current assets and current liablities. The trainer then constituted the trainees into groups and assigned each group the task of observing different components of current assets and current liabilities. The case study provides the scope to analyze the company on its liquidity position, and the impact of composition of current assets and current liabilities on the liquidity position of the company.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyze and interpret the liquidity position of a company.
• Understand the difference between various liquidity ratios.
• Analyze the liquidity position of Maruti Suzuki India Limited.

Keywords

Liquidity of Maruti Suzuki India Limited; Current Ratio; Quick Ratio; Cash Ratio; Overall Liquidity; Current Assets; Current Liabilities; Quick Assets; Financial statements; Accounting policies