As we see in the case of the ITES companies, the amount of debt taken is very less and their repayments can be easily covered by their assets as shown by their low debt to assets ratio. All the three companies have high equity ratios.
Cost is determined using the weighted average method. I think there is management failure in Infosys as a result of which the assets are poorly utilized. So, I ould suggest the management to look into the situation on immediate basis and devise a way for proper utilization of assets.
Creditors are bound to get worried if the company is exposed to a large amount of debt and may demand that the company pay some of it back. IT has a major role in strengthening the economic and technical foundations of India.
EBIT margins are also influenced by systematic changes like emergence of a new technology etc. Infosys The liquidity ratios namely-current ratio and quick ratio have declined during The operating profit margin looks at EBIT as a percentage of sales.
It is evident from the fact that in FY14, sales grew by The cash flow from operational activities has been steadily increasing by This is due to a constant stream of Profits being transferred into the Reserves and Surplus account. Companies that have ratios around or below 1 should only be those which have inventories that can immediately be converted into cash.
Whereas in pat increased at a substantial rate compared to sales. A majority of the business of Indian IT services players is transacted in foreign currencies, which makes the industry vulnerable to fluctuations in the Indian rupee against major global currencies, namely the dollar, pound, yen and euro.
The Annual report of the Company, earnings press releases, SEC filings and quarterly reports of the Company apart from the details about the Company, Board of directors and Management, are also available on the website. Whereas in pat increased at a substantial rate compared to sales.
Goodwill compromises excess of purchase consideration over the fair value of the net assets of the acquired enterprise. Although, the liquidity of Infosys is quite high as per vertical analysis, but it seems that the company is playing safe by keeping the high liquidity and not investing much, thereby reducing risk.
Depreciation on fixed assets is provided on the straight line method which is estimated by the management. An interest coverage ratio below 1.
In case of Infosys it is decreasing over a period of time taken. Intangible assets are recorded at the consideration paid for such project and are carried at cost less accumulated amortization and impairment.
Financial Position, Strength and Weakness: Infosys with no debts has an equity ratio of 1. A mechanical engineer and a management accountant, Harsha has a track record of rapidly growing businesses by providing solutions to address key customer problems, by leading large multi-functional and multi-locational teams, and by building extensive relationships with key stakeholders both internal and external.
EBIT margins also reflect the success of all managerial strategies and decisions taken during the year. Brand consultancy, planning and training are her focus areas.Ratio Analysis Of Tcs Wipro Infosys It is a liquidity ratio that measures a company's ability to pay short-term obligations.
Also known as "liquidity ratio", "cash asset ratio" and "cash ratio". Both TCS and Infosys show high ROEs of 0. 41 and 0.
3 while wipro maintains a good ROE of 0. (Comparatively low ROE of wipro can be attributed to its high equity financing). PAT Margin It shows the marginal change in the profit after taxes as compared to the same of previous financial year.
Financial Analysis On Tcs Wipro And Infosys. CURRENT RATIO It is a liquidity ratio that measures a company's ability to pay short-term obligations. Also known as "liquidity ratio", "cash asset ratio" and "cash ratio". Tata Consultancy Services Financial Statements Analysis Part A: Summary of Key Findings from Part B.
13 Pages. Tata Consultancy Services Financial Statements Analysis Part A: Summary of Key Findings from Part B the revenues of the top four players, i.e.
Tata Consultancy Services, Infosys, Wipro and HCL Technologies, grew by per. Infosys has higher liquidity in as per vertical analysis.
the profits of Infosys were huge and thus Infosys showed a significantly good performance than Wipro. The operating profits have increased by good amount indicating that company is experiencing smooth and good operations/5(3).
In our case we have taken have compared the ratios of Infosys with those of its main competitors TCS and Wipro. Slide Current ratio amongst all three is highest for infosys i.e that depicts that it is able to meet its current obligations in most efficient way amongst all three firms.Download