Professional Documents
Culture Documents
Presented By:
Saurabh Sharma
Saurav kumar
Sreelal M.S.
Sandeep Sahu
Fact File of Infosys
* Indian GAAP
Ratio Analysis
of
Financial Statements
Financial Ratios..
ØPerformance ratios
ØWorking capital ratios
ØLiquidity ratios
ØSolvency ratios
Liquidity Ratios
Inferences
Net Income
ROA :=
Total Assets
Mar-09 Mar-08 Mar-07 Mar-06 Mar-05
32.14 32.06 32.34 31.35 31.66
Return on Equity: ROE
Net Income
ROE :=
Total Common Equity
Mar-09 Mar-08 Mar-07 Mar-06 Mar-05
32.67 33.14 33.89 35.1 36.32
Return on Capital Employed (ROCE)
net profits
Return on Capital Employed =
Capital employed
Mar-09 Mar-08 Mar-07 Mar-06 Mar-05
37.71 37.81 37.05 39.51 42.54
§ The Return on Equity (ROE) &
Return on Equity (ROE) both
has .
§ It shows that the company
has utilize the shareholders
funds less efficiently.
§ This is unfavorable for
Company's image as it may
result in decrease in the
confidence in the investor’s
mind for company’s
performance.
Asset Turnover
Asset turnover is a financial ratio that measures the efficiency of a company's use
of its assets in generating sales revenue or sales income to the company.
Mar-09 Mar-08 Mar-07 Mar-06 Mar-05
•
Operational & Financial
Ratios
Earnings Per Share
• Earnings per Share are calculated to
find out overall profitability of the
organization.
•
•
• NPAT
•Earnings per share =
•
Mar-09 Mar-08 Mar-07 Mar-06 Mar-05
•
•
Mar-09 Mar-08 Mar-07 Mar-06 Mar-05
•
•
Mar-09 Mar-08 Mar-07 Mar-06 Mar-05
This is due to a
significant increase in
Cost of sales by 22%.
• Therefore we analyze that its Cost of
sales has so much material affect that it is
reducing both GP
Ratio & operating profit ratio.
•
• As we will see further there is a healthy %
increase in Net profit amount by approx
18% (as compared to
• Gross Profit Amount by approx 15% ).
This improvement in
its performance is majorly due to
improvement in Extra-ordinary items like
interest received on deposits from banks
( by 257 % ).
• Funds available with the company has
approx 21% . In 2007-08 company
has not issued any new equity or debt .
Therefore the company has raised its funds
only through its Reserves & Surplus which
is approx 21%.
•
• Now the company has employed these funds
in following ways:
• 1) Acquired new fixed assets . This has
•
SUGGESTIONS
1.
2.Company needs to reduce its cost of
sales i.e. Software Development
related expenses, to increase its
Gross Profit ratio and
Operating net ratio.
3.
4.Company needs to have stringent
credit policy, to reduce the funds
required for working capital.
•
Contd….
• Thank You.