Tata Motors Cash Flow Statement

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Abstract: Cash flow statement is an important document that gives quick and ready information regarding the cash flow analysis of a company. It is a statement depicting change in cash and cash equivalents position during a period. TATA Motors is an Indian Multinational automotive company. It is the world’s fifth largest motor vehicle manufacturing company, fourth largest truck manufacturing company and also the second largest bus manufacturing company by volume. Recently, the concern has reported fluctuating turnover for last five years in its annual reports. Hence, it is necessary to judge the sufficiency of the cash position to support the success story of the company. This study is based on financial figures disclosed by company in five…show more content…
a) Cash Flow Statement Analysis
Cash Flow Statement provides information about the cash receipts and payments of an enterprise for a given period. It provides significant information that compliments the profit and loss account and balance sheet. A Cash Flow Statement is a statement which provides a detailed explanation for the change in a firm’s cash during a particular period by indicating the firm’s sources and uses of cash during that period. Cash Flow Statement classifies cash flow during the period from operating, investing and financing activities.
b) Cash Flow from Operating Activities:
Cash Flows from operating activities are primarily derived from the principal revenue producing activities of the enterprise. Therefore, they generally result from the transactions and other events into the determination of net profit or loss.
c) Cash Flow from Investing
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• To measure the weight of such sources and uses of cash against cash profit position of the firm.
• To identify the strength and weakness in cash flow position of the firm.
• Research Type: It is an analytical research based on the secondary data. It investigates the financial figures of the concern using theoretical framework of cash flow statement analysis. Figures of cash flow statement of 5 years i.e. 2011-12, 2012-13, 2013-14, 2014-15 and 2015-16 is analyzed to identify strength and weakness in cash flow of the business.
• Type of Data: Secondary Data
Secondary data involves figures denoted regarding cash inflow and cash outflow in cash flow statement reported in annual reports of Tata Motors for five years. Also some important information is collected by various sources of secondary data such as books, websites and official release of business firm.
• Analysis tools and techniques:
Figures are analyzed using basic mathematical tools like average and percentage etc. and it is interpreted using various kinds of charts and graphs.
1. Analysis of Revenue:
Table 1: Net Revenue in
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