Keywords
Returns
Earning Per Share
Profitability
How to Cite
Abstract
The Economic Value Added (EVA) metric, a thorough assessment of long-term value enhancement, is utilized in the study to conduct a financial performance analysis of Maruti Suzuki India Limited by measuring tax-adjusted operating profit in relation to the minimum required rate of return. The research finds trends in EVA and resource utilization by analyzing archival data from financial disclosures covering the fiscal years 2011–12 through 2021–22. The results show consistently high EVA values, which suggests that shareholders are effectively generating wealth. Strategic management success led to EVA's 2017–18 peak, however, the disruptions caused by the COVID – 19 crises caused a brief downturn in 2019–20. The company's tenacity was demonstrated by a subsequent recovery. The study finds that Maruti Suzuki Limited is a good option for long-term investment due to its sound financial management and consistent EVA performance. These findings highlight the efficacy of EVA as an indicator for gauging effectiveness and expansion potential, offering investors in the automotive industry insightful advice.
References
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