ANALYZING IMPACT OF COVID AND FINANCIAL RATIOS ON PROFITABILITY OF INDIAN AUTOMOBILE COMPANIES

Abstract

This research paper studies about impact of COVID 19 and Financial ratios on profitability of Indian automobile companies and the study has been conducted for a time period of ten years from 2013 to 2023 with Total 110  observations. For ten automobile companies which are registered in BSE and NSE and there are four independent variables they are covid, current ratio, debt to equity ratio, interest coverage ratio, long term debt equity ratio and dependent variable is Return of capital employed And these variables has been analyzed through R software and the result suggests that COVID has negative impact on profit but it is not significant and other factors were significant. Automobile industry is a Significant contributor to India’s growth in terms of GDP and in automobile industry particularly passenger car segments and two wheelers and tractor segment has been key contributor. Data has been collected from secondary sources of various automobile companies of passenger car segments and converted the data into panel data and on collected data. I had run the data in R software to get the result and upon getting the result it was chosen that the pooled regression would be best for given data.