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Case Code: FINC150
Case Length: 8 Pages 
Period: 2016-2018   
Pub Date: 2019
Teaching Note: Available
Organization : Tata Motors Limited
Industry :Automobile
Countries : India
Themes: Liquidity Analysis
Case Studies  
Business Strategy
Human Resource Management
Leadership & Entrepreneurship

Liquidity Management at Tata Motors Limited



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.

Finance Case Studies | Case Study in Management, Operations, Strategies, Business Environment, Case Studies
Finance Case Studies | Case Study in Management, Operations, Strategies, Business Environment, Case Studies
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The case is structured to achieve the following teaching objectives:
  • The process of analyzing and interpreting the liquidity position of a company.
  • The difference between various liquidity ratios.
  • The liquidity position of Tata Motors Limited.


Liquidity of Tata Motors Limited,Tata Motors,Current Ratio,Quick Ratio,Cash Ratio,Overall Liquidity,Current Assets,Current Liabilities,Quick Assets