FINANCIAL PERFORMANCE ANALYSIS OF HERO MOTOCORP LTD

Abstract: The process of identification of financial strengths and weaknesses of the company by establishing the relationship between the items of balance sheet and profit and loss account is referred to as financial performance analysis. Analyzing financial performance has its importance in internal and external aspects. In this study we have analyzed the financial performance of Hero MotoCorp. Limited (formerly known as Hero Honda) which is an Indian multinational scooter and motorcycle manufacturer by applying trend analysis and profitability ratios. The analysis was performed for a period of five years based on the secondary data obtained from the annual report of the company. It was found that the sales trends, working capital trend and cash flow ratios are fluctuating and suggested the company to improve the ratios by maintaining stability of cash flow and regulate cash flow evenly throughout and try to improve sales to achieve maximum profitability at a minimum cost.

Keywords: Financial performance, ratio analysis, cash flow analysis, coverage ratios trend analysis, working capital analysis.