Revenue and operational, financial performance of the leading Indian automobile companies of India: A relational mutual analysis

The operational and financial performance of the business organization is to be measured by its revenue, profit-earning capacity, and financial soundness to pay its debts. The profit of a business organization depends on the level of activities or revenue while the earning capacity defines and accelerates the absolute profit. Also, the financial soundness facilitates the resources and working capital to run the business activities to earn the profit. The operational efficiency enhances the profit margin while financial soundness increases the absolute profit by lifting the production level. The financial resources, operational efficiency, and revenue govern the profit of a business organization. The Indian automobile industry is the most prominent and contributing sector in the Indian economy. The study considers the relationship of revenue and profitability, financial resources to determine the relationship and mutual governance of revenue and profitability and revenue and financial resources. Financial ratios and statistical tools i.e. gross profitability and mean, coefficient of variation, rank correlation, and fixed base index applied to analyze the data of leading Indian automobile companies for the period 2011 to 2020. The study finds that the profitability and growth of the smaller leading Indian automobile companies are better than the higher revenue companies. Total resources or capital employed governs the revenue of the Indian automobile companies. The study recommends the study of cost composition of products of lower revenue leading Indian automobile companies.