Two Tier Analysis of TVS Motor Company Limited in India

The two-tier analysis or Du-Pont Chart is an important tool for internal and external improvement in the operations of business activities. This has two tier i.e. assets turnover and profit margin. The DuPont Model is a technique that can be used to analyze the profitability of a company using traditional performance management tools. To enable this, the Du Pont model integrates elements of the financial statements (that are Income Statement) with those of the Balance Sheet. A Du-Pont Chart is the inter relationship between various ratios in the form of charts for better managerial control. The standard ratios of the company are compared to present ratios and changes in performance are judged. This paper tries to find out whether the assets are properly utilized or not, and whether the company has the earnings which are sufficient or not as per their investment in comparison to the normal profit in TVS Motor Company Ltd.