INFOSYS

TCS

Ratio analysis of two IT industries

Current RatioCurrent Ratio

Current Ratio = Current Assets Current Liabilities

TCS INFOSYS

Current assets (in crores) 7876.91 5507

Current Liabilities (in crores) 3545.8 1162

Current Ratio 2.2:1 4.7:1

Liquid Ratio

TCS INFOSYS

5694.38 7799

3501.28 1162

1.62:1 6.7:1

Liquid Ratio = Quick Assets Quick Liabilities

Quick Assets

Quick Liabilities

Liquid Ratio

Proprietary Ratio

Proprietary Ratio = Proprietors funds * 100 Total assets

Proprietory Ratio Proprietory Ratio

TCS INFOSYS

Proprietory Funds 8850.10 8388

Total assets 10788.5 8496

82.8% 98.73%

Gross Profit Ratio

Gross Profit Ratio = Gross Profit * 100 Sales

TCS INFOSYS

Gross Profit(in crores) 5367.90 5871

Net Sales(in crores) 18914.26 13149

Gross Profit Ratio 28.38% 44.65%

Net Profit RatioNet Profit Ratio

TCS INFOSYS

Net Profit (In crore) 4212.63 3783

Net Sales (In crore) 18914.26 13149

Net Profit Ratio 22.27% 28.77%

Net Profit Ratio= Net Profit Ratio= Net profit

Net sales * 100

Operating Ratio Operating Ratio

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

TCS INFOSYS

Operating Expenses (in crore) 5803.03 2575

Net Sales (in crore) 18914.26 5912

Operating Ratio 30.68% 43.55%

Return On Shareholders Equity

Return On Shareholders Equity = Net Profit

Share-Holders fund

TCS INFOSYS

Net Profit

Share -Holders Funds

Return On Shareholders Equity

11162

4212.6 3783

33.89%

* 100

47.59%

8850.10

Return on Capital Employed

Return on capital employed = EBIT * 100

capital employed

TCS INFOSYS

EBIT

Capital employed

5104.38

11162

4918.28

9640.35

Ratio 45.73%51.01%

CONCLUSION

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