Ratio analysis of two IT industries

INFOSYS

TCS

Current Ratio
Current Ratio = Current Assets Current Liabilities

TCS Current assets (in crores) Current Liabilities (in crores) Current Ratio 7876.91 3545.8 2.2:1

INFOSYS 5507 1162 4.7:1

Liquid Ratio
Liquid Ratio = Quick Assets Quick Liabilities

TCS
Quick Assets

INFOSYS 7799 1162 6.7:1

5694.38 3501.28 1.62:1

Quick Liabilities

Liquid Ratio

Proprietory Ratio
Proprietary Ratio = Proprietors funds * 100 Total assets TCS
Proprietory Funds Total assets

INFOSYS 8388 8496 98.73%

8850.10 10788.5 82.8%

Proprietar y Ratio

Gross Profit Ratio
Gross Profit Ratio = Gross Profit * 100 Sales TCS INFOSYS

Gross Profit(in crores) Net Sales(in crores) Gross Profit Ratio

5367.90 18914.26 28.38%

5871 13149 44.65%

Net Profit Ratio
Net Profit Ratio= Net profit 100 Net sales *

TCS Net Profit (In crore) Net Sales (In crore) Net Profit Ratio 4212.63 18914.26 22.27%

INFOSYS 3783 13149 28.77%

Operating Ratio
Operating Ratio = * 100 COGS + Operating Expenses Net Sales TCS INFOSYS

Operating Expenses (in crore) Net Sales (in crore) Operating Ratio

5803.03 18914.26 30.68%

2575 5912 43.55%

Return On Shareholders Equity
Return On Shareholders Equity = Net Profit Share-Holders fund
* 100

TCS Net Profit Share -Holders Funds
Return On Shareholders Equity
4212.6 8850.10 47.59%

INFOSYS
3783 11162 33.89%

Return on Capital Employed
Return on capital employed =

EBIT capital

* 100 employed
EBIT Capital employed
Ratio

TCS
4918.28 9640.35 51.01%

INFOSYS
5104.38 11162 45.73%

CONCLUSION

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