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CONSULTANCY
SERVICE(TCS)
PRESENTED BY,
KARISHMA JAIN
INTRODUCTION
1. Tata Consultancy Services Limited (TCS) is an Indian multinational information
technology (IT) service, consulting and business solutions company.
2. If the current ratio of the company is on the higher side, this may imply that the
resources are not being fully utilized.
2. If quick ratio is higher, company may keep too much cash on hand or have a
problem collecting its accounts receivable.
3. It measures the ability to use its quick assets (cash and cash equivalents,
MARKETABLE securities and accounts receivable) to pay its current liabilities.
Debt-worth ratio = Total liabilities
Net worth
2. Decreasing the gross profit margin temporarily may be beneficial in the long run.
3. A business may decrease its gross profit margin by lowering the cost of the goods
it sells or by using higher quality, and thus more expensive, materials to make the
goods.
Net Margin = Net profit after tax
Net sales
2. The higher the margin is, the more effective the company is in converting revenue
into actual profit.
3. Here, it is decreasing. It shows that company is not that effective to earn a good
profit.
Asset turnover = Net sales
Average total assets
Measures the efficiency of Total Assets in generating Net Assets Total Assets Profit
Return on investment = Net profit after tax
Net worth
Measures the efficiency of Net Worth in generating Net Investment Net Worth Profit
Account receivable turnover = Sales
Account receivable
Measures the rate at which Accounts Receivable are being Receivable Accounts
Receivable collected on an annual basis.
Sales to asset ratio = Sales
Total assets