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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