Abstract

Hero Motor Corporation Limited (Hero) is a leading India-based two-wheeler manufacturer with operations across different countries. Despite having a market share of above 50% in the motorcycle segment, the company was facing a challenge in the scooter segment and the premium motorcycle segment. The management of Hero has been cautious and has made plans according to the changing market requirements to sustain its market share and improve the overall profitability of the company. The present case study provides scope to analyze the trend in overall profitability of Hero using profitability ratios, and can be used to to determine the growth rate of Hero for the fiscal year 2018-19.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The process of analyzing and interpreting the profitability position of a company.
• The difference between various profitability ratios.
• The profitability position of Hero Motor Corporation Limited.

Keywords

Profitability of Hero Motor Corporation Limited; Current Ratio; Quick Ratio; Cash Ratio; Overall Liquidity; Current Assets; Current Liabilities; Quick Assets; Profitability Analysis