Balance Sheet WIPRO

INVENTORY ANALYSIS : 

INVENTORY ANALYSIS Done jointly by: Shruti Bagaria & Kumaresh Jana IIPM/UGP/S1

Method of Valuation of Inventories : 

Method of Valuation of Inventories Finished goods are valued at cost or net realizable value, whichever is lower. Other inventories, primarily comprising material and other supplies held for use in the course of production are valued at cost less provision for obsolescence. Small value tools and consumables are charged to consumption on purchase. Cost is determined using weighted average method.

Five Yearly Inventory Analysis : 

Five Yearly Inventory Analysis March 2005: Rs.1274mn March 2006: Rs.1486mn March 2007: Rs.4150mn March 2008: Rs.6664mn March 2009: Rs.7586mn

Five yearly Inventory Analysis of Wipro, represented by a Bar graph : 

Five yearly Inventory Analysis of Wipro, represented by a Bar graph

Slide 11: 

RATIO ANALYSIS

Liquidity Ratio : 

Liquidity Ratio Current Ratio : Current Assets/ Current Liabilities Acid Test Ratio : Quick Assets/ Current Liabilities Cash Ratio :Cash+Investments/ Current Liabilities

Leverage Ratio : 

Leverage Ratio Debt Equity Ratio : Debt/Equity Debt Asset Ratio : Debt/Asset Interest Coverage Ratio : (Profit before Int.&Tax + Dep.)/ Interest Fixed Charges Coverage Ratio : (Profit before Int.&Tax + Dep.)/ [Interest + (Loan Repayment/1-Tax)]

Slide 15: 

Debt Service Coverage Ratio : (Profit before Int.&Tax + Dep. + Non Cash Exp.)/(Int. on loan + Principle Repayment)

Turnover Ratio : 

Turnover Ratio Inventory Turnover Ratio : Total Sales/Avg. Inventory Debtors Turnover Ratio : Total Sales/Avg. Debtors Creditors Turnover Ratio : Total Purchases/Avg. Creditors Average Debt Collection Period : 365days/Debtors Turnover Ratio Total Assets Turnover Ratio : Total Sales/Avg. Assets

Profitability Ratio : 

Profitability Ratio Gross Profit Margin : Gross Profit/ Sales Net Profit Margin : Net Profit/ Sales Earning Before Int.&Tax, Dep.&Amortisation : (Net Profit +Int.+Tax+Dep.+Amortisation)/ Sales Earning Power :Profit before Int.&Tax/ Avg. Assets

Slide 20: 

Return on Assets : Profit after tax/ Avg. Assets Return on Capital Employed : [Profit before Int.&Tax(1-tax rate)]/ Investment Return on Equity : Profit after tax/Avg. Equity Return on Investments : [Profit before Int.&Tax(1-tax rate)]/ Investment

Slide 23: 

THANK YOU