Published on May 3, 2012
Module 5 presentation On: Module 5 presentation On FM CONCEPT RATIO ANALYSYS OF “ INFOSYS LTD ” Guided by :- MR NILESH MOVALIYA subject :- FINANCIAL MANAGEMANT MBA SEM 2 ACADEMIC YEAR 2001-12 Prepared BY:- JIGNESH VAMJA VISHAL GEDIYA SANDIP CHITRODA HISTORY: HISTORY The idea was born on a January 1981 On July 2, 1981, Infosys Consultants Pvt. Ltd was incorporated. The starting capital was $250 which was borrowed from Mrs Sudha Murthy The 6 people who were with Narayan Murthy were: Nandan Nilekani N S Raghavan S Gopalakrishnan S D Shibulal K Dinesh Ashok Arora MISSION: MISSION To achieve their objectives in an environment of fairness, honesty, and courtesy towards their clients, employees, vendors and society at large. vision: vision To help their clients meet their goals through their people, services and solutions Product : Product Finance universal banking solution flypp - Application marketplace Infosys customer self- service energy manager Infosys health benefit exchange Infosys m conneect -multi-channel mobile middleware Infosys omni -channel personalization engine Infosys real-time expertise manager Infosys supply chain perfomance management suite Infosys trading platform Infosys transaction reconciliation platform services: services Management consulting services Business application service Business IT service Engineering service Why Financial analysis important: Why Financial analysis important Financial analysts provide guidance to businesses and individuals making investment decisions. Financial analysts assess the performance of stocks, bonds, commodities, and other types of investments. Also called securities analysts and investment analysts , they work for banks, insurance companies, mutual and pension funds, securities firms, the business media, and other businesses, making investment decisions or recommendations. They often meet with company officials to gain a better insight into the firms' prospects and management. Capital structure: Capital structure Owners fund(capital , premium, retain earnings , others) =5695 Current liabilities =6328 Loans and advance = 1106 + =13129( crore ) Dividend policy: Dividend policy As per the profit and situation company is paying dividend to their shareholders after maintaining retain earning. Year 2009 =23 Year 2010 = 25 Year 2011 =60 WHAT IS RATIO ANALYSIS ?: WHAT IS RATIO ANALYSIS ? It is NOT just comparing different numbers from the balance sheet, income statement, and cash flow statement. It is about comparing the number against previous years, other companies, the industry, or even the economy in general. Ratios look at the relationships between individual values and relate them to how a company has performed in the past, and might perform in the future. Earning per share ratio: Earning per share ratio = Net profit after Taxes/ No. of Equity Shares As above chart shows earning per share ratio is 73 in 2007.thane increase in 2008’09 thane decrease thane after increase to 124. year Eps Mar ' 07 73.63 Mar ' 08 87.61 Mar ' 09 120.19 Mar ' 10 113.52 Mar ' 11 124.43 Dividend per share ratio: Dividend per share ratio = Dividend/No of share As above chart shows dividend per share ratio is 11.5 in 2007.thane increase 33.25 thane after decrease to 23.5 thane increase year by year. year Dividend per share Mar ' 07 11.5 Mar ' 08 33.25 Mar ' 09 23.5 Mar ' 10 25 Mar ' 11 60 Book value per share: Book value per share = Market price per share/book value per share As above chart shows book value per share ratio is 195 in 2007.thane increase year by year. year Book value per share Mar ' 07 195.41 Mar ' 08 235.84 Mar ' 09 310.89 Mar ' 10 384.02 Mar ' 11 426.73 Net operating income per share: Net operating income per share = operating income * (1-tax rate) As above chart shows net operating income per share ratio is 230 in 2007.thane increase year by year. year NOI per share Mar ' 07 230.2 Mar ' 08 273.57 Mar ' 09 353.75 Mar ' 10 368.4 Mar ' 11 442.13 Operating ratio: Operating rat io =( Cost of goods sold + Operating expenses/ Net sales)*100 As above chart shows operating ratio is 32.15% in 2007.thane decrease to 31.72% thane after increase to 34.5% thane increase and decrease to 33.14% in 2011. year Operating ratio Mar ' 07 32.13 Mar ' 08 31.72 Mar ' 09 34.09 Mar ' 10 34.82 Mar ' 11 33.14 Net profit margin: Net profit margin =Net profit/Net sales As above chart shows net profit ratio is 28.05% in 2007.thane mostly decrease to year by year. year Net profit margin Mar ' 07 28.05 Mar ' 08 27.37 Mar ' 09 27.52 Mar ' 10 26.36 Mar ' 11 24.31 Fixed assets turnover ratio: Fixed assets turnover ratio =Cost of Sales/Net Fixed Assets As above chart shows fixed asset turnover ratio is 3.38 in 2007.thane increase to 3.47 thane after decrease to 3.39 thane decrease and increase to 3.67 in 2011 year Fixed assets turnover ratio Mar ' 07 3.38 Mar ' 08 3.47 Mar ' 09 3.39 Mar ' 10 3.33 Mar ' 11 3.67 Current ratio: Current ratio =Current Assets/Current Liabilities As above chart shows current ratio is 4.96 in 2007. thane after decrease thane increase thane decrease and increase to 5.11 in 2011. year Current ratio Mar ' 07 4.96 Mar ' 08 3.3 Mar ' 09 4.71 Mar ' 10 4.28 Mar ' 11 5.11 Quick ratio: Quick ratio =current asset-inventories/current liabilities As above chart shows quick ratio is 4.91 in 2007. thane after decrease thane increase thane decrease and increase to 5.02 in 2011. year Quick ratio Mar ' 07 4.91 Mar ' 08 3.28 Mar ' 09 4.67 Mar ' 10 4.2 Mar ' 11 5.02 Dividend payout ratio: Dividend payout ratio =Dividend per Equity Share/Earnings per Share As above chart shows dividend payout ratio is 19.85 in 2007. thane after increase thane decrease thane increase and increase to 62.28 in 2011 year Dividend payout ratio Mar ' 07 19.85 Mar ' 08 49.77 Mar ' 09 27.03 Mar ' 10 28.84 Mar ' 11 62.28 Financial charges coverage ratio: Financial charges coverage ratio =Profit Before Interest And Taxes/Annual Interest And Bank Charges As above chart shows financial charges coverage ratio is 4559 in 2007. thane after increase thane decrease thane increase and increase to 9523 in 2011 year Financial charges coverage ratio Mar ' 07 4,559.00 Mar ' 08 5,642.00 Mar ' 09 3,891.00 Mar ' 10 4,116.50 Mar ' 11 9,523.00 PowerPoint Presentation: Thank you….