Abstract

Mahindra and Mahindra Limited (M&M) is the flagship and holding company of the Mahindra Group. The core business of M&M is manufacturing and sale of automobiles and farm sector equipment. M&M also provides other automobile related services. The company has been consistent in its performance. However, the fiscal year 2019-20 was a challenging one and auto sales witnessed a decline in sales volume after a period of 10 years. In view of the growing uncertainty in the Economy and in the Industry, analysts and investors have been interested in understanding the financial performance and financial position of M&M. The present case study provides information about the company’s incomes and expenses, gains and losses, and the various components of the balance sheet to assess its financial position using financial statement analysis.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Variation in the operational performance and financial position of M&M using Horizontal Analysis
• Variation in the composition of expenses, assets, liabilities of M&M using Common size analysis
• The operating performance of M&M using profitability ratios
• The efficiency of asset management of M&M using turnover ratios
• The long-term and short-term solvency of M&M using liquidity ratios

Keywords

M&M; Horizontal Analysis, Common Size Analysis, Ratio Analysis, Profitability Ratios, Turnover Ratios, Liquidity Ratios, Solvency Ratios