logging in or signing up financial ratios comparision of tcs infosys & wipro animeshsinhabvu Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 1319 Category: Business & Fin.. License: All Rights Reserved Like it (1) Dislike it (0) Added: January 13, 2011 This Presentation is Public Favorites: 0 Presentation Description inventory turn over ratio current ratio net asset turnover ratio Comments Posting comment... By: sachin910 (3 month(s) ago) Please mail me the ppt at sachin910@gmail.com. Appreciate your help. Saving..... Post Reply Close Saving..... Edit Comment Close By: prashant99s (5 month(s) ago) how can i download this ppt.can u send it to my id pksinha@iocl.co.in Saving..... Post Reply Close Saving..... Edit Comment Close By: ajay.110092 (7 month(s) ago) superbbb ppt Saving..... Post Reply Close Saving..... Edit Comment Close By: archdegz (15 month(s) ago) request doownload thanks Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Financial Ratio Analysis of IT Industry : Financial Ratio Analysis of IT Industry Submitted by Animesh Bhavesh Gaurav Parth Shashank Overview of IT Industry : Overview of IT Industry The Indian IT sector is growing rapidly and it has already made its presence felt in all parts of the world. IT has a major role in strengthening the economic and technical foundations of India. Indian professionals are setting up examples of their proficiency in IT, in India as well as abroad. The sector can be classified into 4 broad categories - IT Services, Engineering Services, ITES-BPO Services, E Business IT Services can further be categorized into Information Services (IS) outsourcing, packaged software support and installation, systems integration, processing services, hardware support and installation and IT training and education. Infosys : Infosys Infosys Technologies Ltd is a global technology services firm that defines, designs and delivers information technology (IT)-enabled business solutions to their clients. Infosys Technologies Ltd is a public limited and India's second largest software exporter company.It was incorporated in the year 1981 as Infosys Consultants Pvt Ltd by Mr.N.R.Narayana Murthy at Karnataka. The company provides end-to-end business solutions that leverage technology for their clients, including technical consulting, design, development, product engineering, maintenance, systems integration, package-enabled consulting, and implementation and infrastructure management services. Tata Consultancy Services : Tata Consultancy Services Tata Consultancy Services Ltd is an information technology (IT) company. The company offers a range of IT services, outsourcing and business solutions. They also offer IT infrastructure services, business process outsourcing services, engineering and industrial services, global consulting and asset leveraged solutions. Their segments include banking, financial services and insurance, manufacturing,retail and distribution, and telecom. Wipro : Wipro Wipro Ltd is a leading India based provider of IT Services, including Business Process Outsourcing (BPO) services, globally. The company provides comprehensive IT Solutions and Services, including Systems Integration, Information Systems Outsourcing, IT Enabled Services, Package Implementation, Software Application development and maintenance, and Research and Development Services to corporations globally. They also provide Consumer Products, Lighting, Furniture, Eco Energy, Water treatment and Hydraulic business. The company is the first PCMM Level 5 and SEI CMM Level 5 certified IT Services Company globally. Time Series Analysis : Time Series Analysis The time series analysis shows how the ratios of the firms change over a period of time . It gives an indication of whether the firm’s financial performance has improved ,deteriorated or remained constant over time. We have done the time series analysis of our primary company , Infosys . Time Series analysis : Time Series analysis The current ratio of Infosys is almost increasing over the years except for the year 2008 because Infosys’s current liabilities in 2008 grew proportionately more in comparison to its current assets in the same year. But overall its current ratio is healthy enough(approx. 4.5 in the year 2010) which shows that the company’s current assets to meet its obligations is increasing. The interval ratio of has increased over the years from 356 days to 442 days from year 2006 to 2010 which indicates that the company has sufficient liquid assets to finance its operations for 442 days. This ratio measures the firm’s potential reservoir of funds .This ratio has increased over the years except for the year 2010 because reserves has increased in greater proportions compared to current assets and liabilities. And this ratio indicates the net working capital of firm w.r.t net assets. Time Series analysis : Time Series analysis . It measures the firm debt serving capacity.This shows that how many times the earnings are w.r.t the interest to be paid by it .Infosys’s interest coverage ratio has increased from 2006-2008 and decreased in the year 2009 because interest doubled that year compared to previous year.The high interest coverage ratio of more than approx. 11000 shows that the company has sufficient earnings w.r.t interest that it has to be paid. . It tells the firms ability to generate sales from all financial resources committed to total assets.it is decreasing from 2006-10. . It tells how fast are the current assets being converted into sales. So over the period from 2006-10 the current asset turnover ratio is decreasing because sales is increasing at slower rate compared to the current assets. Time Series analysis : Time Series analysis . It tells that for every one rupee of sales, the company needs that much amount of net current assets. In case of Infosys the working capital turnover ratio is decreasing over the period of 2006-2010 because net current assets are increasing from 2006-2010 . It tells how much times of sales is a company producing for one rupees of capital employed in net assets.In case of Infosys it is decreasing over a period of time taken.ie 2006-2010.The reason being the net assets which are growing at a faster rate compared to the sales being generated. It measures the company’s efficiency in manufacturing , administering and selling the products i.e. how successful the company is in converting its sales into net profit. It has decreased over the period from 2007-2010 because sales has been increasing but profit after tax (PAT) is increasing at a much slower rate. Whereas in 2006-2007 pat increased at a substantial rate compared to sales. Cross Sectional Analysis : Cross Sectional Analysis In this analysis we compare the ratio of one firm with respect to those of its competitors in the same industry. This kind of comparison indicates the relative financial position and performance of a firm. In our case we have taken have compared the ratios of Infosys with those of its main competitors TCS and Wipro. Slide 11: Current ratio amongst all three is highest for infosys i.e 4.45 that depicts that it is able to meet its current obligations in most efficient way amongst all three firms. Interest coverage ratio is highest for infosys as its earnings is highest amongst all 3 firms taken and its interest is lowest amongst all the firms. Working capital turnover ratio is least for infosys due to sales being lowest amonsgt all 3 firms chosen and moreover net current assets of infosys is highest amongst all 3 firms as its Current assets is highest and current liability is lowest comaparatively. Cross Sectional Analysis Cross Sectional Analysis : Cross Sectional Analysis The net working capital ratio of Infosys is the highest among the three firms . It indicates that Infosys has sufficient net working to meet its current obligations. It indicates the the firm ability to generate sales from all its assets .It is highest for TCS indicating that it is most efficient in using its total assets to generate sales. It indicates the the firm ability to generate sales from all its current assets .It is highest for TCS indicating that it is most efficient in using its current assets to generate sales. Cross Sectional Analysis : Cross Sectional Analysis It indicates the firms efficiency in converting its sales into profit.It is highest for Infosys indicating that it is most efficient in in converting its sales into profits. The indicates the ratio of operating expenses with respect to sales. It is highest for Infosys . It indicates the earnings obtained on the total assets of the firm. It is highest in case of Infosys indicating that it has the greatest return on its total assets. Slide 14: THANK YOU Slide 17: You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
financial ratios comparision of tcs infosys & wipro animeshsinhabvu Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 1319 Category: Business & Fin.. License: All Rights Reserved Like it (1) Dislike it (0) Added: January 13, 2011 This Presentation is Public Favorites: 0 Presentation Description inventory turn over ratio current ratio net asset turnover ratio Comments Posting comment... By: sachin910 (3 month(s) ago) Please mail me the ppt at sachin910@gmail.com. Appreciate your help. Saving..... Post Reply Close Saving..... Edit Comment Close By: prashant99s (5 month(s) ago) how can i download this ppt.can u send it to my id pksinha@iocl.co.in Saving..... Post Reply Close Saving..... Edit Comment Close By: ajay.110092 (7 month(s) ago) superbbb ppt Saving..... Post Reply Close Saving..... Edit Comment Close By: archdegz (15 month(s) ago) request doownload thanks Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Financial Ratio Analysis of IT Industry : Financial Ratio Analysis of IT Industry Submitted by Animesh Bhavesh Gaurav Parth Shashank Overview of IT Industry : Overview of IT Industry The Indian IT sector is growing rapidly and it has already made its presence felt in all parts of the world. IT has a major role in strengthening the economic and technical foundations of India. Indian professionals are setting up examples of their proficiency in IT, in India as well as abroad. The sector can be classified into 4 broad categories - IT Services, Engineering Services, ITES-BPO Services, E Business IT Services can further be categorized into Information Services (IS) outsourcing, packaged software support and installation, systems integration, processing services, hardware support and installation and IT training and education. Infosys : Infosys Infosys Technologies Ltd is a global technology services firm that defines, designs and delivers information technology (IT)-enabled business solutions to their clients. Infosys Technologies Ltd is a public limited and India's second largest software exporter company.It was incorporated in the year 1981 as Infosys Consultants Pvt Ltd by Mr.N.R.Narayana Murthy at Karnataka. The company provides end-to-end business solutions that leverage technology for their clients, including technical consulting, design, development, product engineering, maintenance, systems integration, package-enabled consulting, and implementation and infrastructure management services. Tata Consultancy Services : Tata Consultancy Services Tata Consultancy Services Ltd is an information technology (IT) company. The company offers a range of IT services, outsourcing and business solutions. They also offer IT infrastructure services, business process outsourcing services, engineering and industrial services, global consulting and asset leveraged solutions. Their segments include banking, financial services and insurance, manufacturing,retail and distribution, and telecom. Wipro : Wipro Wipro Ltd is a leading India based provider of IT Services, including Business Process Outsourcing (BPO) services, globally. The company provides comprehensive IT Solutions and Services, including Systems Integration, Information Systems Outsourcing, IT Enabled Services, Package Implementation, Software Application development and maintenance, and Research and Development Services to corporations globally. They also provide Consumer Products, Lighting, Furniture, Eco Energy, Water treatment and Hydraulic business. The company is the first PCMM Level 5 and SEI CMM Level 5 certified IT Services Company globally. Time Series Analysis : Time Series Analysis The time series analysis shows how the ratios of the firms change over a period of time . It gives an indication of whether the firm’s financial performance has improved ,deteriorated or remained constant over time. We have done the time series analysis of our primary company , Infosys . Time Series analysis : Time Series analysis The current ratio of Infosys is almost increasing over the years except for the year 2008 because Infosys’s current liabilities in 2008 grew proportionately more in comparison to its current assets in the same year. But overall its current ratio is healthy enough(approx. 4.5 in the year 2010) which shows that the company’s current assets to meet its obligations is increasing. The interval ratio of has increased over the years from 356 days to 442 days from year 2006 to 2010 which indicates that the company has sufficient liquid assets to finance its operations for 442 days. This ratio measures the firm’s potential reservoir of funds .This ratio has increased over the years except for the year 2010 because reserves has increased in greater proportions compared to current assets and liabilities. And this ratio indicates the net working capital of firm w.r.t net assets. Time Series analysis : Time Series analysis . It measures the firm debt serving capacity.This shows that how many times the earnings are w.r.t the interest to be paid by it .Infosys’s interest coverage ratio has increased from 2006-2008 and decreased in the year 2009 because interest doubled that year compared to previous year.The high interest coverage ratio of more than approx. 11000 shows that the company has sufficient earnings w.r.t interest that it has to be paid. . It tells the firms ability to generate sales from all financial resources committed to total assets.it is decreasing from 2006-10. . It tells how fast are the current assets being converted into sales. So over the period from 2006-10 the current asset turnover ratio is decreasing because sales is increasing at slower rate compared to the current assets. Time Series analysis : Time Series analysis . It tells that for every one rupee of sales, the company needs that much amount of net current assets. In case of Infosys the working capital turnover ratio is decreasing over the period of 2006-2010 because net current assets are increasing from 2006-2010 . It tells how much times of sales is a company producing for one rupees of capital employed in net assets.In case of Infosys it is decreasing over a period of time taken.ie 2006-2010.The reason being the net assets which are growing at a faster rate compared to the sales being generated. It measures the company’s efficiency in manufacturing , administering and selling the products i.e. how successful the company is in converting its sales into net profit. It has decreased over the period from 2007-2010 because sales has been increasing but profit after tax (PAT) is increasing at a much slower rate. Whereas in 2006-2007 pat increased at a substantial rate compared to sales. Cross Sectional Analysis : Cross Sectional Analysis In this analysis we compare the ratio of one firm with respect to those of its competitors in the same industry. This kind of comparison indicates the relative financial position and performance of a firm. In our case we have taken have compared the ratios of Infosys with those of its main competitors TCS and Wipro. Slide 11: Current ratio amongst all three is highest for infosys i.e 4.45 that depicts that it is able to meet its current obligations in most efficient way amongst all three firms. Interest coverage ratio is highest for infosys as its earnings is highest amongst all 3 firms taken and its interest is lowest amongst all the firms. Working capital turnover ratio is least for infosys due to sales being lowest amonsgt all 3 firms chosen and moreover net current assets of infosys is highest amongst all 3 firms as its Current assets is highest and current liability is lowest comaparatively. Cross Sectional Analysis Cross Sectional Analysis : Cross Sectional Analysis The net working capital ratio of Infosys is the highest among the three firms . It indicates that Infosys has sufficient net working to meet its current obligations. It indicates the the firm ability to generate sales from all its assets .It is highest for TCS indicating that it is most efficient in using its total assets to generate sales. It indicates the the firm ability to generate sales from all its current assets .It is highest for TCS indicating that it is most efficient in using its current assets to generate sales. Cross Sectional Analysis : Cross Sectional Analysis It indicates the firms efficiency in converting its sales into profit.It is highest for Infosys indicating that it is most efficient in in converting its sales into profits. The indicates the ratio of operating expenses with respect to sales. It is highest for Infosys . It indicates the earnings obtained on the total assets of the firm. It is highest in case of Infosys indicating that it has the greatest return on its total assets. Slide 14: THANK YOU Slide 17: