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Abstract
It is almost impossible to establish and run any business in the absence of assets. From the initial stage of the business itself, the assets start building. First of all, to establish the business, space is required and from here only assets creation starts. Land is purchased and the required building structure is erected. Then there arises the need for machineries and other equipments. There is requirement of furniture. Certain kinds of fixtures are also in the list. All these form the group of fixed assets. To acquire all these fixed assets, cash is needed and also, to take advantage of these fixed assets, raw material is purchased. The transformation process requires manpower and some other overheads as well. In the process of selling the finished goods, debtors are created if the sales are on credit basis. All these assets, known as current assets are necessary for the utilization of fixed assets. Fixed assets are having longer economic life and are expected to stay forever in the business, with replacements, as and when needed. On the other side, current assets are having life of either one operating cycle or maximum of one accounting year. However, to run any business, both type of assets are needed, quantity of the assets required may, though vary according to the size and type of business. Both types of assets are supposed to be utilized efficiently in generation of sales revenue. How efficiently the assets are used, is the concern of the organization, so as to utilize the assets to their fullest potential and to generate maximum profit from the business operations. The efficiency, with which the assets have been used, is measured by calculating assets turn over ratios. These ratios depict that how many times the assets have been used in generating the sales revenue. Maruti Suzuki India Limited (formerly Maruti Udyog Limited) has been selected for the present study as it is the leader in passenger car segment in India. It generates substantial sales revenue, utilizing substantially large asset base. It would be interesting to study as to how efficiently MSIL is using its assets, in order to generate sales.