Summary of the Financial Statements

Jaguar Land Rover

IntroductionCurrently, Jaguar Land Rover (global automobile manufacturer based in Britain) is the biggest car and engine manufacturer in UK. The business faced somechallenges, including an unfavourable financial condition and diminishing revenues. The business was purchased by Tata Motors, an Indian automaker, in 2008. Since then, sales performance has steadily improved, and in the last few years, JLR has made severalsignificant foreign investments. Before 2011, the manufacturing operations of JLR were in the native market; compared with the other major automobile manufacturers, the company had recently started expanding internationally. We have evaluated the financial statement summary for every year from 2004 to 20222023 in this study.

Financial Summary 2004

Income Statement

Year Revenue Cost of Goods Sold (COGS) Gross Profit Operating Expenses Net Income

2004 $147,128.00 $135,852.00 -$177.00 $11,453.00 $3,487.00

Statement of financial Position

Year Assets Liabilities Equity

2004 $113,051.00 $109,268.00 $16,045.00

Cash Flow Statements

Year Operating Cash flow Investing Cash Flow Financing Cash Flow Net Cash Flow

2004 $6,998.00 -$1,705.00 -$3,381.00 $3,287.00

Ratios

Years Gross Profit/Loss (a) Revenue (b) Gross Profit Margin (a / b) Net Profit (C) Net Profit Margin (c / b) Total Assets (d) ROA (C / d) Total Equity (e) ROE (c / e) Total debts (f) Debt-to-Equity(f / e)

2004 -$177.00 $147,128.00 -0.12% $3,487.00 2.37% $113,051.00 3.08% $16,045.00 21.73% $109,268.00 6.810096603

Impact Summary

Revenue and gross profit were calculated based on product and service sales in 2004, which totalled $147.128. In 2004, gross profit was minus $177.00, indicating that the costs of items supplied exceeded the income. This might suggest an issue with the pricing or cost management of the company. Net income and operational costs for 2004: 2004 net income was $3.487.00, and operating expenditures were $11.453.00, which shows that the company had no inefficiencies or excessive overhead costs (Ford Motor, 2004).

The statement of financial status reveals that total assets are $113.051, liabilities are $109.268, and equity is $16.045. This is a significantly low equity-to-liabilities ratio, which may raise concerns. The cash flow statement indicates a positive operational cash flow of $6.998.00, suggesting that cash was created from the primary business operations. However, the cash flow for investing and financing was negative at $3.287.00, indicating possible issues with the investment and financing activities of the company. The gross profit margin was -0.12%, meaning every dollar of revenue was lost. The net profit margin was -2.37%, indicating that the company retained a comparatively small amount of revenue as profit. ROA was 3.08%, indicating that the company was reasonably profitable relative to its total assets. ROE was 21.73%, indicating that the company generated an excellent return for its owners. The debt-to-equity ratio was 6.81, indicating that the company relied extensively on debt funding.

Financial Summary 2005

Income Statement

Year Revenue Cost of Goods Sold (COGS) Gross Profit Operating Expenses Net Income

2005 $153,503.00 $144,944.00 -$4,209.00 $12,768.00 $2,024.00

Statement of financial Position

Year Assets Liabilities Equity

2005 $113,829.00 $107,678.00 $12,957.00

Cash Flow Statements

Year Operating Cash flow Investing Cash Flow Financing Cash Flow Net Cash Flow

2005 $5,436.00 -$691.00 $1,078.00 $3,250.00

Ratios

2005 -$4,209.00 $153,503.00 -2.74% $2,024.00 1.32% $113,829.00 1.78% $12,957.00 15.62% $107,678.00 8.310411361

Impact Summary

In 2005, the company made $153,503 in revenue, the entire amount gained from selling goods or services. The cost of goods sold was $144,944, yielding a gross profit of -$4,209. This means the company experienced high manufacturing or service delivery costs, resulting in a negative gross profit. Operating expenditures totalled $12,768, resulting in a net loss of $2,024 (Ford Motor, 2005). This shows the operating expenses of the company outweighed its gross profit, resulting in a negative net income.

The total assets of the company for the year were $113,829, reflecting the entire worth of assets held or managed by the company. Total liabilities were $107,678, reflecting the commitments or debts of the company that must be addressed. Equity was $12,957, representing the remaining equity of the company in its assets after subtracting liabilities.

Operating cash flow for the fiscal year ending December 31, 2022, was $5.4 million. Operating cash flow refers to the cash flow generated by the primary business operations of the company. Investing cash flow had a negative impact of -$691 for the year, showing funds utilized to invest in assets. Financing cash flow positively affected $1.078 for the year, indicating cash created or utilized for financing operations. For the year, net cash flow totalled $3.250.

The ratios have varied outcomes. The gross profit margin of the company is negative, but its net profit margin and return on assets are positive. The return on equity of the company is moderate, at 15.62%, and its debt-to-equity ratio is 8.31%. The reliance of the company on debt financing raises concerns. While specific issues exist, including the negative gross profit margin (GPM) of the company and high debt-to-equity ratio, the capacity of the company to make positive NRE (net income) and CX (cash flow from operations) demonstrates some stability in its financial performance during the year.

Financial Summary 2006

Income Statement

Year Revenue Cost of Goods Sold (COGS) Gross Profit Operating Expenses Net Income

2006 $143,307.00 $148,866.00 -$17,921.00 $12,359.00 -$12,613.00

Statement of financial Position

Year Assets Liabilities Equity

2006 $122,634.00 $135,415.00 -$3,465.00

Cash Flow Statements

Year Operating Cash flow Investing Cash Flow Financing Cash Flow Net Cash Flow

2006 -$4,172.00 -$6,157.00 $11,543.00 $2,639.00

Ratios

2006 -$17,921.00 $143,307.00 -12.51% -$12,613.00 -8.80% $122,634.00 -10.29% -$3,465.00 364.01% $135,415.00 -39.08080808

Direct costs of creating the items or services you market. High COGS against low revenue suggests ineffective cost control. Negative gross profit indicates that the company spent more money than it generated in sales. These are the costs incurred throughout the day-to-day operations of the company. Negative net income indicates that the total costs of the company surpass its yearly income. "Negative equity" is the leftover stake in the assets of the company after deducting liabilities. This indicates that the liabilities over the assets (Parsons, 2022).

The Operating Cash Flow is $4,172.00. This indicates the cash created or utilized by the regular business activities of the company. A negative operational cash flow shows that the activities of the company did not produce enough cash to meet its costs. Investing cash flow is -$6,157.00. This is the money used for investment, such as buying or selling assets. A negative investment cash flow shows that the company spent more on assets than it earned from asset sales. Financing Cash Flow: $11,543.00. This indicates the cash earned or utilized by financing operations such as stock issuance or repurchase, as well as loan borrowing and repayment (Ford Motor , 2006). A positive financing cash flow means the company generated more cash from financing operations than it spent. Net Cash Flow: $2,639.00.

Gross profit margin: -12.51 percent the gross profit margin implies that costs of items sold exceed its income, resulting in a loss. The net profit margin is -8.80%. Net profit margin is the ratio of the costs to its total income. Return on assets (ROA) is -10.29 percent. The return on net income (ROA) is negative compared to total assets, indicating inefficient usage. Return on equity (ROE): 364.01%. A high return on equity is deceptive since it is predicated on a negative equity value, indicating an unsustainable imbalance in which liabilities surpass

Financial Summary 2007

Income Statement

Year Revenue Cost of Goods Sold (COGS) Gross Profit Operating Expenses Net Income

2007 $154,379.00 $142,587.00 $11,792.00 $35,164.00 -$2,723.00

Statement of financial Position

Year Assets Liabilities Equity

2007 $118,489.00 $123,535.00 $5,628.00

Cash Flow Statements

Year Operating Cash flow Investing Cash Flow Financing Cash Flow Net Cash Flow

2007 $8,725.00 -$3,865.00 -$433.00 $4,642.00

Ratios

2007 $11,792.00 $154,379.00 7.64% -$2,723.00 -1.76% $118,489.00 -2.30% $5,628.00 -48.38% $123,535.00 21.95007107

Impact Summary

The total revenue for the year was $154,379, and gross profit was $11,792,000. The COGS was $142,587, and the operating expenditure was $35,164, for a total net loss of $2,723,000.

With total assets of $118.489, total liabilities of $123.535, and total equity of $5.628.00, the operational cash flow of $8.725.00 was positive, showing that cash was created from core company operations. However, the investing and financing cash flows were negative. The net cash flow of $4.642.00 was positive (Ford Motor , 2007). The gross profit margin of 7.64% demonstrated that the company could benefit from its sales. The net profit margin was negative at -1.76%, showing that costs outpaced income. ROA and ROE were negative, showing low profitability relative to assets and equity. A high debt-to-equity ratio suggests a company reliance on debt to finance operations.

The company struggled to generate profits, as seen by its negative net income and poor profit margins. Negative equity reflects a lack of stability since debts outweigh assets. Although operating cash flow is a positive indicator, unfavourable investments and financial cash flows create doubts regarding the investment and financing strategies of the company. A high debt-to-equity ratio indicates potential financial problems and the need for debt management strategies.

Financial Summary 2008

Income Statement

Year Revenue Cost of Goods Sold (COGS) Gross Profit Operating Expenses Net Income

2008 $129,166.00 $127,103.00 $2,063.00 $32,986.00 -$14,672.00

Statement of financial Position

Year Assets Liabilities Equity

2008 $73,845.00 $99,262.00 -$17,311.00

Cash Flow Statements

Year Operating Cash flow Investing Cash Flow Financing Cash Flow Net Cash Flow

2008 -$12,440.00 -$929.00 $217.00 -$14,301.00

Ratios

2008 $2,063.00 $129,166.00 1.60% -$14,672.00 -11.36% $73,845.00 -19.87% -$17,311.00 84.76% $99,262.00 -5.734041939

Impact Summary

The company failed to create profit, reflected by its low net income and profit margins. A negative equity position shows instability in finances since debts outweigh assets. Positive operational cash flow is a good indicator. However, negative funding and investing cash flows raise questions about the funding and investment practices of the company. The high debt-to-equity ratio indicates financial risk and the need for a debt management strategy.

The gross profit margin was 1.60%, showing poor efficiency relative to sales. The net profit margin is poor (-11.36%), suggesting operational flaws and a shortage of profit potential. The return on assets is negative, at -19.87%, indicating that assets are underutilized to generate income (Ford Motor, 2008). The return on equity is low (-5.73%), suggesting a reduction of shareholder equity. The elevated debt-to-equity ratio (84.76%) raises concerns about use and financial risks.

The fiscal year 2008 financial summary exposes several concerns, such as revenue losses, equity deficits, a shortage of cash, and poor operations. Urgent corrective actions and significant rearrangement could be necessary to recover the financial status and sustainability of the company.

Overall Performanceuntil JLR was taken over in 2008, Jan.

Revenue varies yearly, with high years in 2005 and 2007, followed by a decline in subsequent years. Gross profit varies, with peaks in 2004, 2005, and 2006, followed by drops in the following years, and peaks in 2007 and 2008, followed by a rebound in the following years. JLRs net income fluctuates throughout time, with peaks occurring every few years and troughs occurring during periods of financial hardship. Operating cash flow varies but is often positive. This suggests that JLR company has been able to produce cash through its primary business operations over the years.

The companys total assets have changed over time, with a significant fall in 2008 and a minor recovery in 2009 due economic crisis. Liabilities also fluctuated, hurting equity. Equity exhibited volatility, with negative numbers reported in 2006, 2008, an showing the companys difficulties in meeting commitments with assets. The debt-to-equity ratio measures financial leverage, with more excellent ratios seen in 2006, 2007, and 2008, indicating a growing reliance on debt funding.

Operating cash flow has remained favourable in most years, proving the ability to earn cash from core company operations. Variations in investing and financing cash flow reflect different amounts of expenditure on capital and financing operations throughout time.

The gross profit margin measures how much the income is retained after all expenditures have been accounted for, with some years displaying negative results. Net profit margin is the proportion of income kept as profit after all expenditures have been accounted for, and it varies over time. ROA (Return on Assets) and ROE (Return on Equity) measure the capacity to create profit from its assets and equity.

The overall financial performance of JLR has been variable and imbalanced, with periods of both growth and loss. The changes in sales, gross margin, net profit, and balance sheet indicators demonstrate the company has been facing challenges in maintaining financial stability over the years. The company needs to stabilize the operations and increase profitability in order to boost shareholder value and long-term viability.

Tata took over JLR in Jan 2008 and the Financial Summary is accordingly below.

Financial Summary 2009Income Statement

Year Revenue Cost of Goods Sold (COGS) Gross Profit Operating Expenses Net Income

2009 4949.5 3375 1,574 1,508.6 (402.4)

Statement of financial Position

Year Assets Liabilities Equity

2009 4,283.9 5,210.7 (926.8)

Cash Flow Statements

Year Operating Cash flow Investing Cash Flow Financing Cash Flow Net Cash Flow

2009 (81.1) (1,901.6) 1,961.5 (21.2)

2009 -$83.90 $4,949.50 -1.70% -$402.40 -8.13% $4,283.90 -9.39% -$926.80 43.42% $5,210.70 -5.62

Impact Summary:

The revenue of JLR was $4,949.5 million in 2009, with a gross profit of $1,574 million, resulting in a negative gross profit margin of -1.70%. The negative net income of ($402.4) million indicates operational challenges.

The total assets of the company were $4,283.9 million, and liabilities were significantly higher at $5,210.7 million and the negative equity of ($926.8) million. It raises concerns about the financial health.

Operating cash flow was negative at $81.1 million, majorly in operating losses. The positive financing cash flow of $1,961.5 million might suggest external investment or effective capital utilization.

Both gross profit margin (-1.70%) and net profit margin (-8.13%) are negative, and the company faced difficulties producing money from sales. The negative ROA (-9.39%) and ROE (-43.42%) indicate that the company is not properly using its assets and equity to produce profits. The debt-to-equity ratio is -5.62, which may warrant more research.

Financial Summary 2010Year Revenue Cost of Goods Sold (COGS) Gross Profit Operating Expenses Net Income

2010 6527.2 4437 2,090.2 1,479.4 23

Statement of financial Position

Year Assets Liabilities Equity

2010 5,624.3 6,087.1 (462.8)

Cash Flows

Year Operating Cash flow Investing Cash Flow Financing Cash Flow Net Cash Flow

2010 662.1 (763.1) 652.4 551.4

2010 $349.10 $6,527.20 5.35% $23.00 0.35% $5,624.30 0.41% -$462.80 -4.97% $6,087.10 -13.15

Impact Summary:

The financial statements of JLR for 2010 show mixed financial results. Although the company made a big gross profit and had a positive net income, its negative equity and huge debt raiseconcerns regarding its financial stability and leverage. Operating and net profit margins are low, indicating that cost management and profitability may be challenging to improve.

The cash flow of JLR from operational activities was positive, showing that the company can produce cash from its primary business operations. However, the negative equity and high debt-to-equity ratio highlight the need to manage financial leverage and capital structure properly.

The gross profit margin of 5.35% shows the profitability of JLR processes. Despite a positive net income, the net profit margin is still relatively low at 0.35%, indicating cut profit margins or high operational costs. The low ROE and high Debt-to-Equity ratio raises questions about the financial stability and leverage.Financial Summary 2011Year Revenue Cost of Goods Sold (COGS) Gross Profit Operating Expenses Net Income

2011 9870.7 6178.1 3,692.6 1,969.4 1035.9

Statement of financial Position

Year Assets Liabilities Equity

2011 6,675.6 5,200.2 1,475.4

Cash Flow

Year Operating Cash flow Investing Cash Flow Financing Cash Flow Net Cash Flow

2011 1,645.2 (769.4) 1,961.5 348.4

Key ratios:

2011 $1,501.70 $9,870.70 15.21% $1,035.90 10.49% $6,675.60 15.52% $1,475.40 70.21% $5,200.20 3.52

Impact Summary:

JLR recorded a revenue of $9,870.7 million and a gross profit of $3,692.6 million for an adequate gross profit margin of 15.21 per cent. The net income of $1,035.9 million represents a net profit margin of 10.49%. The total assets amount to $6,675.6 million, showing good asset management. The equity of $1,475.4 million shows a solid financial structure.

The positive operational cash flow of $1,645.2 million indicates its capacity to produce cash from its main businesses. A positive financing cash flow of $1,961.5 million indicates effective financial management.

The ROA of 15.52% shows the effective use of assets to create profit. A ROE of 70.21% indicates solid returns for shareholders. The debt-to-equity ratio is a reasonable 3.52%, indicating a healthy capital structure. The financial results of 2011 show sound financial stability. The ability of the company to generate good returns for shareholders while maintaining a sustainable liability well for its future.

Financial Summary 2012Year Revenue Cost of Goods Sold (COGS) Gross Profit Operating Expenses Net Income

2012 13,511.7 8,732.7 4779 2529.3 1,481.1

Statement of financial Position

Year Assets Liabilities Equity

2012 10,217.1 7,292.9 2,924.2

Cash Flow

Year Operating Cash flow Investing Cash Flow Financing Cash Flow Net Cash Flow

2012 2,500.1 (1,541.8) 443.8 1,402.1

Financial Ratios:

2012 $4,779.00 $13,511.70 35.37% $1,481.10 10.96% $10,217.10 14.50% $2,924.20 50.65% $7,292.90 2.49

Impact Summary:

In 2012, JLR recorded total sales of $13,511.7 million and gross profit of $4,779 million. The gross profit margin was 35.37 per cent, which indicates effective cost management. Operating costs were $2,529.3 million, generating a net income of $1,481.1 million or a net profit margin of 10.96%. The income statement shows the capacity of JLR to create profit while properly reducing operational expenses.

According to the 2012 statement of financial position, the total assets of JLR were $10,217.1 million, with liabilities of $7,292.9 million and equity of $2,924.2 million). The balance sheet shows a strong equity position, protecting against financial risks.

JLR maintainedexcellent cash flow management in 2012. Operating cash flow was $2,500.1 million, while investment activities generateda cash outflow of $1,541.8 million. Financing activities produced a positive cash flow of $443.8 million, resulting in a net cash flow of $1,402.1 million. This shows the capacity of JLR to produce positive cash flows from its primary activities.

The gross margin of 35.37% shows its capacity to produce profit after settling the cost of goods sold. The net profit margin of 10.96% shows the ability to manage operational expenditures and convert revenue into net profits. With a ROA of 14.50%, JLR displays efficient asset use to create profit. The ROE of 50.65% indicates solid returns for shareholders. The debt-to-equity ratio 2.49 shows modest financial leverage, with a good balance between debt and equity.

Financial Summary 2013Year Revenue Cost of Goods Sold (COGS) Gross Profit Operating Expenses Net Income

2013 15,783.7 9,904.4 5889.3 3074.9 1,215.0

Statement of financial Position

Year Assets Liabilities Equity

2013 12,836.9 9,298.1 3,538.8

Cash Flow

Year Operating Cash flow Investing Cash Flow Financing Cash Flow Net Cash Flow

2013 2,429.0 (2,609.0) (178.2) (358.2)

Financial Ratios

2013 $5,889.30 $15,783.70 37.31% $1,215.00 7.70% $12,836.90 9.46% $3,538.80 34.33% $9,298.10 2.63

Impact Summary:

The 2013 financial performance of JLR showed strengths in revenue growth, operational efficiency, and profitability. However, special care should be taken to manage operational expenditures and the impact of debt on the capital structure.

JLR had a solid gross profit margin of 37.31%, showing effective cost control in manufacturing. However, operational expenditures were severely affected, resulting in a net profit margin of 7.70%. The balance sheet shows a strong equity position, accounting for 27.6% of total assets. The company has a solid equity ratio to total liabilities, indicating a secure financial structure.

JLR had positive operating cash flow, which indicates operational efficiency. However, the negative net cash flow shows significant investments in investing and financing operations, which might be for expansion or debt repayment.

Financial Summary 2014Year Revenue Cost of Goods Sold (COGS) Gross Profit Operating Expenses Net Income

2014 19,386 11,904 7,482 3,717 1,879

Statement of financial Position

Year Assets Liabilities Equity

2014 15,589 9,725 5,864

Cash Flow

Year Operating Cash flow Investing Cash Flow Financing Cash Flow Net Cash Flow

2014 3,422 (2,736) (498) (358.2)

Key financial Ratios:

2014 $7,482.00 $19,386.00 38.59% $1,879.00 9.69% $15,589.00 12.05% $5,864.00 32.04% $9,725.00 1.66

Impact Summary:

In 2014, JLR recorded $19.39 billion in revenue and a gross profit of $7.48 billion, for a gross profit margin of 38.59%. The net profit margin was 9.69%, showing that about 9.69% of revenue changed into net income.

The total assets were $15.59 billion, showing a solid asset base. Liabilities were $9.72 billion, while equity was $5.86 billion, showing a relatively strong financial situation.

Operating cash flow was $3.42 billion, showing the capacity to produce cash from its primary operations. The negative investing cash flow of ($2.74) billion reflects significant asset investments, but the negative financing cash flow of ($498) million may indicate debt or capital expenditures repayments.

ROA of 12.05% implies effective asset use for making a profit. ROE of 32.04% indicates good returns to shareholders on equity. The debt-to-equity ratio of 1.66 shows that the company has a moderate level of debt relative to its equity.

Financial Summary 2015Year Revenue Cost of Goods Sold (COGS) Gross Profit Operating Expenses Net Income

2015 21,866 12,523 8,681 4,109 2,038

Statement of financial Position

Year Assets Liabilities Equity

2015 18,563 9,298.1 6,040

Cash Flow

Year Operating Cash flow Investing Cash Flow Financing Cash Flow Net Cash Flow

2015 3,627 (2,641) (38) (358.2)

Key financial Ratios:

2015 $8,681.00 $21,866.00 39.70% $2,038.00 9.32% $18,563.00 10.98% $6,040.00 33.74% $9,298.10 1.54

Impact Summary:

The revenue in 2015 was $21,866 million. The gross profit of $8,681 million showsa profit margin of 39.70%. It also suggests that JLR retained around 39.70% of its income after excluding the cost of goods sold (COGS). The gross profit margin is an essential measure of the capacity to profit from its primary business operations. Operating costs for the year were $4,109 million. This comprises someexpenditures such as selling, general, and administrative fees. Despite these costs, JLR had a net profit of $2,038 million. The net profit margin, determined as net income divided by revenue, is 9.32%. This value shows the amount of income that changes into profit after all expenditures are excluded.

In 2015, JLR had total assets of $18,563 million. This shows the assets overall worth, including current and non-current ones. Total liabilities were $9,298.1 million, leaving a total equity of $6,040 million.

In 2015, operational cash flow JLR was $3,627 million, which shows cash received from its primary business operations. Investing operations, comprising capital expenditures and investments, resulted in a $2,641 million outflow. Financing operations, including debt repayment and dividend payments, resulted in a net outflow of $358.2 million. The total net cash flow for the year was minus $358.2 million.Financial Summary 2016Year Revenue Cost of Goods Sold (COGS) Gross Profit Operating Expenses Net Income

2016 22,286 13,405 8,881 4,674 1,312

Statement of financial Position

Year Assets Liabilities Equity

2016 20,567 12,953 7,614

Cash Flow

Year Operating Cash flow Investing Cash Flow Financing Cash Flow Net Cash Flow

2016 3,556 (2,966) (403) 187

2016 $8,881.00 $22,286.00 39.85% $1,312.00 5.89% $20,567.00 6.38% $7,614.00 17.23% $12,953.00 1.70

Key financial Ratios:

Impact Summary

In 2016, total revenue of JLR was $22.29 billion, with a gross profit of $8.88 billion. This represents a gross profit margin of 39.85%, indicating that the company adequately controlled its manufacturing costs toits sales. Operating costs were $4.67 billion, yielding a net income of $1.31 billion (JLR, 2016). The net profit margin was 5.89%, the percentage of sales maintained as profit after excluding all expenditures.

The total assets of JLR in 2016 were $20.57 billion, with liabilities of $12.95 billion. The equity amounted to $7.61 billion (JLR, 2016). This demonstrates a moderately leveraged position, with equity accounting for 37% of the total capital (Equity-to-Assets ratio).

JLR generateda positive operational cash flow of $3.56 billion, demonstrating that its core business operations were cash positive. Investing cash flow of $2.97 billion indicates significant expenditures on capital or asset investments. Financing cash flow was $0.40 billion, implying debt repayments or buybacks of shares. The net cash flow was positive, totalling $0.19 billion.

The gross profit margin of JLR 39.85% is a good sign of effective cost management. The net profit margin of 5.89% shows the capacity to turn sales into profits. The return on assets (ROA) is 6.38%, suggesting that assets are used efficiently to create profits. Return on equity (ROE) is 17.23%, suggesting strong shareholder returns. The Debt-to-Equity ratio of 1.70 indicates an acceptable level of financial leverage. The total debt is $12.95 billion, 1.7 times its equity.

Financial Summary 2017Year Revenue Cost of Goods Sold (COGS) Gross Profit Operating Expenses Net Income

2017 24,339 14,920 9,419 5,376 1,272

Statement of financial Position

Year Assets Liabilities Equity

2017 24,350 17,769 6,581

Cash Flow

Year Operating Cash flow Investing Cash Flow Financing Cash Flow Net Cash Flow

2017 3,160 (4,317) 541 (616)

Key financial Ratios:

2017 $9,419.00 $24,339.00 38.70% $1,272.00 5.23% $24,350.00 5.22% $6,581.00 19.33% $17,769.00 2.70

Impact Summary

JLR had sales of $24.34 billion in 2017, with a gross profit of $9.42 billion. The gross profit margin of 38.70% shows that the company successfully managed its manufacturing expenses and maintained a considerable percentage of its income. Operating costs was $5.38 billion. Understanding the breakdown of these expenditures (e.g., R&D, marketing) is critical for determining operational efficiency. The net income of JLR for the year was $1.27 billion, with a profit margin of 5.23%. This means the company retained around 5.23% of its profit after excluding all expenditures.

The total assets were $24.35 billion, with total liabilities of $17.77 billion. The equity was $6.58 billion. This balance sheet structure shows a solid asset base and an adequate debt level.

JLR earned $3.16 billion in operational cash flow, showing the cash its primary business operations generated. The negative investing cash flow of $(4.32) billion shows considerable capital expenditures or asset investments. Financing operations generated a positive cash flow of $541 million and a net cash flow of $616 million. Further investigation is required to determine the reasons for these cash flow changes.

The ROA was 5.22%, meaning the company earned a 5.22% return on its assets. A higher ROA often shows effective asset utilization. The ROE was 19.33%, indicating that JLR returned 19.33% on shareholders' equity. This shows the capacity to make a profit from shareholder investments. The debt-to-equity ratio was 2.70, indicating that JLR had more debt than equity. While this ratio gives information on the leverage, a thorough examination of the type and terms of the debt is required to determine risk.

Financial Summary 2018Year Revenue Cost of Goods Sold (COGS) Gross Profit Operating Expenses Net Income

2018 25,786 16,328 9,458 5,846 1,114

Statement of financial Position

Year Assets Liabilities Equity

2018 26,775 16,791 9,984

Cash Flow

Year Operating Cash flow Investing Cash Flow Financing Cash Flow Net Cash Flow

2018 2,958 (3,222) 53 (211)

Key financial Ratios:

2018 $9,458.00 $25,786.00 36.68% $1,114.00 4.32% $26,775.00 4.16% $9,984.00 11.16% $16,791.00 1.68

Impact Summary

The revenue of JLR in 2018 was $25.79 billion, with a gross profit of $9.46 billion, providing a gross profit margin of 36.68%. It means a substantial margin, showing the capacity to generate profits after accounting for the cost of goods sold. However, while operating expenditures were $5.85 billion, it is essential to mention that the net profit margin was 4.32%. While this is positive, it shows that much of the gross profit was used to cover operating expenditures.

As of 2018, balancesheet shows total assets of $26.78 billion, liabilities of $16.79 billion, and equity of $9.98 billion. The balance sheet shows a strong equity position, which provides a solid financial framework (JLR, 2018). The equity of $9.98 billion changes into an 11.16% Return on Equity (ROE), indicating its capacity to make a return for its shareholders.

Evaluating the cash flow statement shows JLR had a positive operational cash flow of $2.96 billion, showing that the core business could generate cash. However, investing activities consumed $3.22 billion, mainly for capital expenditures or strategic investments. Financing operations produced a net inflow of $53 million, with the overall net cash flow for the year being a decrease of $211 million.

The gross profit margin of 36.68% shows good sales profitability. The return on assets (ROA) of 4.16% shows that assets are used effectively to create profits. Debt-to-Equity Ratio: 1.68 shows a sensitive capital structure that depends minimally on debt.

Financial Summary 2019Year Revenue Cost of Goods Sold (COGS) Gross Profit Operating Expenses Net Income

2019 24,214 15,670 8544 5,567 (3,321)

Statement of financial Position

Year Assets Liabilities Equity

2019 23,069 17,090 5,979

Cash Flow

Year Operating Cash flow Investing Cash Flow Financing Cash Flow Net Cash Flow

2019 2,253 (2,278) 173 148

Key financial Ratios:

2019 $8,544.00 $24,214.00 35.29% -$3,321.00 -13.72% $23,069.00 -14.40% $5,979.00 -55.54% $17,090.00 2.86

Impact Summary

JLR reported a total revenue of $24.2 billion for 2019. However, the company faced a big problem when the COGS was $15.67 billion, and gross profit of $8.54 billion. The gross profit margin was 35.29%, showing reasonable profitability. Operating expenditures $5.57 billion, further affecting the financial performance, resulting in a $3.32 billion net loss.

The Statement of Financial Position shows that JLR had total assets of $23.07 billion, liabilities of $17.09 billion, and equity of $5.98 billion. The equity position suggests that JLR financed its assets using a combination of debt and equity, showing a careful balance between financial leverage and risk.

The operational cash flow of JLR was $2.25 billion, while its investment activities consumed $2.28 billion. Financing operations contributed positively, generating $173 million in cash inflows. Despite the obstacles, the net cash flow for the year was positive at $148 million, proving its capacity to manage capital resources successfully.

Gross Profit Margin: 35.29% in 2019, the gross profit margin was acceptable. Net profit margin (-13.72%): The negative net profit margin creates concerns, the JLR spent more than its income could support. Return on assets (ROA): -14.40% JLR had a negative return on assets, indicating operational issues in using its assets to create profitsreturn on Equity (ROE): -55.54%. The negative ROE shows that JLR stockholders made a loss on their investments.

Financial Summary 2020Income Statement

Year Revenue Cost of Goods Sold (COGS) Gross Profit Operating Expenses Net Income

2020 22,904 14,684 8220 5,238 (469)

Statement of financial Position

Year Assets Liabilities Equity

2020 24,104 17,548 6,556

Cash Flow

Year Operating Cash flow Investing Cash Flow Financing Cash Flow Net Cash Flow

2020 2,314 (3,177) 329 (534)

Key financial Ratios:

2020 $8,220.00 $22,904.00 35.89% -$469.00 -2.05% $24,104.00 -1.95% $6,556.00 -7.15% $17,548.00 2.68

Impact Summary

Jaguar Land Rover (JLR) had $22,904 million in revenue in 2020. The Cost of Goods Sold (COGS) was $14,684 million, with a Gross Profit of $8,220 million. Operating expenses reached $5,238 million. Unfortunately, JLR recorded a net loss of $469 million for the year. The Gross Profit Margin was 35.89%, the proportion of revenue retained after accounting for thecost of goods sold. The Net Profit Margin of JLR was -2.05%, indicating a loss compared to total revenue.

The total assets of JLR at the end of 2020 were $24,104 million. Liabilities were $17,548 million, with Equity of $6,556 million. This suggests that liabilities finance a significant amount of the assets.

The Cash Flow Statement of JLR shows an operating cash flow of $2,314 million, an investing cash flow of ($3,177) million, and a financing cash flow of $329 million. The net cash flow was negative at $534 million. This implies that the company spent more cash on operations and investments than it produced.

Return on Assets (ROA) was -1.95%, showing a negative return on total assets. Return on Equity (ROE): -7.15 per cent, showing a negative return on shareholder equity. The debt-to-equity ratio was 2.68, indicating more debt than Equity. This may offer a financial risk because a higher debt-to-equity ratio suggests more leverage.

Financial Summary 2021Income Statement

Year Revenue Cost of Goods Sold (COGS) Gross Profit Operating Expenses Net Income

2021 19,731 12,335 7396 3,589 (1,100)

Statement of financial Position

Year Assets Liabilities Equity

2021 23,171 17,908 5,263

Cash Flow

Year Operating Cash flow Investing Cash Flow Financing Cash Flow Net Cash Flow

2021 2,326 (1,469) 812 1,669

Key financial Ratios:

2021 $7,396.00 $19,731.00 37.48% -$1,100.00 -5.57% $23,171.00 -4.75% $5,263.00 -20.90% $17,908.00 3.40

Impact Summary

In 2021, JLR recorded a total revenue of $19,731 million. The cost of goods sold (COGS) was $12,335 million, with a gross profit of $7,396 million. Operating expenditures were high at $3,589 million, resulting in a net income of -$1,100 million. The negative net income indicates that JLR had losses throughout the fiscal year. The statement of financial positionshows that total assets were $23,171 million. Liabilities were $17,908 million, with equity of $5,263 million.

The cash flow statement offers insight into the cash flows in 2021. Operating cash flow was $2,326 million, which is the cash earned from crucial company activities. Investing cash flow was -$1,469 million, which reflected capital expenditures and other investments. The finance cash flow was $812 million, which included cash flows from loan issuance, repayment, and equity transactions. The net cash flow for the year was positive at $1,669 million, indicating that cash and cash equivalents increased.

The gross profit margin of JLR for 2021 was 37.48%, showing the efficiency of both manufacturing and marketing. The net profit margin was -5.57 per cent. A negative net profit margin shows a loss, and JLR struggles during the year. ROA was -4.75%, showing how well the company uses its assets to create profit. The ROE of -20.90% shows the return on equity. A negative ROE represents a loss of shareholder value. The debt-to-equity ratio was 3.40, showing its financial leverage and risk level.

Financial Summary 2022Income Statement

Year Revenue Cost of Goods Sold (COGS) Gross Profit Operating Expenses Net Income

2022 18,320 (11,239) 7081 3,701 (822)

Statement of financial Position

Year Assets Liabilities Equity

2022 21,840 17,337 4,503

Cash Flow

Year Operating Cash flow Investing Cash Flow Financing Cash Flow Net Cash Flow

2022 434 (363) 275 346

Key financial Ratios

2022 $7,081.00 $18,320.00 38.65% -$822.00 -4.49% $21,840.00 -3.76% $4,503.00 -18.25% $17,337.00 3.85

Impact Summary

The 2022 income statement of JLR shows total revenue of $18,320 million, with a cost of goods sold (COGS) of $11,239 million, for a gross profit of $7,081 million. Operating costs were $3,701 million, resulting in a net loss of $822 million. Despite the negative net income, the gross profit margin was at 38.65%, showing the performance in producing profit from its revenues.

The total assets are $21,840 million, while its total liabilities are $17,337 million. The equity wasfor $4,503 million. The balance sheetshows a solid asset base and moderate liabilities. However, negative net income influences overall financial health.

The 2022 cash flow statement shows operational efficiency, with a $434 million positive operating cash flow. Investing activities result in a cash outflow of $363 million, which might indicate capital expenditures or investments. Financing activities provide a cash input of $275 million, resulting in a net cash flow of $346 million.

Gross Profit Margin (38.65%): JLR has a relatively high gross profit margin, showing efficient cost management and pricing methods. The Net Profit Margin (-4.49%) indicates concerns about profitability. The Return on Assets (ROA) of -3.76% indicates that assets did not provide a positive return during the period. Return on Equity (ROE -18.25%) shareholder value drop reflecting the impact of competing net income on equity. The debt-to-equity ratio (3.85%) indicates less reliance on external finance.

Financial Summary 2023Income Statement

Year Revenue Cost of Goods Sold (COGS) Gross Profit Operating Expenses Net Income

2023 22,809 (14,008) 8,801 4,777 (-60)

Statement of financial Position

Year Assets Liabilities Equity

2023 21,709 17,470 4,239

Cash Flow

Year Operating Cash flow Investing Cash Flow Financing Cash Flow Net Cash Flow

2023 2,351 (1,255) (1,732) (636)

Key financial Ratios

2023 $8,801.00 $22,809.00 38.59% -$60.00 -0.26% $21,709.00 -0.28% $4,239.00 -1.42% $17,470.00 4.12

Impact Summary

JLR recorded $22,809 million in sales for fiscal year 2023. The Cost of Goods Sold (COGS) were $14,008 million, with a Gross Profit of $8,801 million. However, the company could not reduce its operational costs, which led to a net loss of $-60 million. The gross profit margin was 38.59%, while the net profit margin was -0.26%.

The Statement of Financial Position for 2023 shows total assets of $21,709 million, with liabilities of $17,470 million. Equity, representing the stockholders' remaining equity was $4,239 million.

The cash flow statement shows an operating cash flow of $2,351 million, an investing cash flow of -$1,255 million, and a financing cash flow of -$1,732 million. The net cash flow for the year was -$636 million.

The gross profit margin was 38.59%, showing the efficient production and pricing methods operation. Unfortunately, JLR recorded a negative Net Profit Margin of -0.26%, indicating that operating costs and other expenses exceeded gross profit. The ROA was -0.28%, indicating that the company struggled to profit from its assets. The ROE was -1.42%, implying a negative shareholder return. The Debt-to-Equity Ratio was 4.12%, indicating a high amount of debt about equity.

The Impact of TATA Acquisition

The sales of JLR gradually increased after the acquisition of Tata Motors in 2008. The sales increased from $4.949.5 million in 2009 to $22.809 million in 2023, at a 7% CAGR. After the acquisition, JLR entered new markets and demographics, increasing sales because of Tata Motors.

The increase in profitability can be defined by Tata Motors' strategic management and investment in JLR, which led to a significant improvement in the gross profit margin, which increased from -1.7% in 2009 to 38.59% in 2023. Operating efficiency, cost reduction, and product innovation increased profitability.

The return on assets of Tata Motors increased from negative 9.39% to negative 0.26% between 2009 and 2023, owing to higher asset utilizationthe ROE of Tata Motors showed a similar trend, indicating more financial solid performance and enhanced shareholder value. The global presence and industry understanding of Tata Motors helped JLR to enter new markets, improving sales and brand recognition. Strategic partnerships and cooperation improved market position and consumer reach.

Tata Motors continued to spend in R&D, which resulted in new vehicle debuts to the JLR portfolio. Introducing new models and technical improvements increased the brand's appeal and competitiveness in the market. Diversification into EVs and hybrids was a long-term plan aligned with market dynamics and regulatory changes.

ConclusionJaguar Land Rover has been acquired by Tata Motors, which has had a significant and transformational effect on the companys financial performance. Strategic management, market growth and product innovation have enabled Tata Motors to drive JLR towards sustained sales and profitable growth. The financial performance reflects improved efficiency, liquidity and debt management, enabling JLR to position itself as a robust and competitive entity in the automotive market. Both internal and external variables determine long-term acquisition success. There are internal elements that the acquirer's management can control, as well as external environmental concerns that must be addressed. In most acquisitions, there is an incentive to extract synergies as soon as feasible, but Tata Motors' acquisition of JLR is an exception. Though the purchase experienced significant losses initially due to unexpected market conditions, Tata Motors handled short-term issues cautiously while continuing to invest in JLR's essential skills. This plan eventually paid off for them in the long term.

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