CAPITAL STRUCTURE ANALYSIS OF TATA MOTORS LTD IN HYDERABAD

Abstract

This study on the capital structure analysis of Tata Motors Ltd aims to evaluate the company's financing mix and how it impacts its overall financial stability and performance. Capital structure refers to the proportion of debt and equity used by the firm to finance its operations and growth. Tata Motors, being one of India’s leading automobile manufacturers, has undergone significant expansion and diversification, making it crucial to analyze its funding strategy. The study examines the company’s long-term debt, equity share capital, reserves, and other financial instruments over recent financial years. Key financial ratios such as Debt to Equity Ratio, Debt to Total Capital, and Interest Coverage Ratio are analyzed to assess the risk and solvency position of the company. The findings provide insights into Tata Motors’ reliance on debt versus equity financing, the cost implications, and the company’s ability to meet its financial obligations.