Abstract

In March 2018, the Chairman of Hero Motor Corporation Limited, Pawan Munjal, briefed the stakeholders of the company on the future challengs and opportunities before the company. He spoke about HMCL’s strategy to expand its market position in the scooter and premium motor vechicle segment during the fiscal year 2018-19. The investors of the company went through the financial statements with a specific focus on the short-term solvency of the firm, which would be an indicator of the efficiency of the operations during the year and which could help them in taking a suitable deision on the investment position they should take in the company for the financial year 2018-19. The case study provides information necessary to calculate and interpret the liquidity ratios of the company and derive a conclusion on the efficiency operations during the financial year 2017-18.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The process of analyzing and interpreting the liquidity position of a company.
• The difference between various liquidity ratios.
• The liquidity position of Hero MotoCorp Ltd.

Keywords

Liquidity of Hero Moto Corp Ltd; Current Ratio; Quick Ratio; Cash Ratio; Overall Liquidity; Current Assets; Current Liabilities; Quick Assets