Financial Analysis of Infosys Technologies Ltd.

7418 Words Oct 11th, 2010 30 Pages
Table of Contents
IT Industry at a glance – Sector Analysis 4
Rise of Services as a whole: 4
IT Services: A major part of the services sector 5
Infosys Technologies Ltd – Financial Ratio Analysis 7
Liquidity Ratio: 7
Quick Ratio: 7
Current Ratio: 8
Leverage Ratio: 9
Debt-Equity Ratio: 9
Interest Coverage Ratio: 10
Profitability Ratio: 11
Return on Equity: ROE 12
Return on Capital Employed: ROCE 12
Valuation Ratio: 13
Dividend Yield: 14
Operating Income Growth (%): 15
Summary: 17
The Competitors 18
Per Share Ratios 18
Cash Earnings Per Share - Cash EPS 18
Book Value 18
Dividend per share (DPS) 18
Operating profit per share 18
Profitability Ratios 18
Operating Profit Margin 19
Net Profit Margin 19
Liquidity ratios 19
Turn Over Ratios 19
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As the global market matures, newer locations are emerging; however India is expected to remain the undisputed leader. Going forward, for India to fully capitalize on the opportunity and sustain a disproportionate lead in the global IT-ITES space, stakeholders need to continue working towards timely and coherent execution of initiatives to address supply side concerns across the following areas:

• Augmenting Talent Supply
• Creating world-class infrastructure
• Strengthening information security
• Enhancing operational excellence
• Providing regulatory support
• Catalyzing domestic market development
• Fostering an ecosystem for innovation

Infosys Technologies Ltd – Financial Ratio Analysis

Liquidity Ratio:
It is a class of financial metrics that is used to determine a company's ability to pay off its short-terms debts obligations. Generally, higher the value of the ratio, larger the margin of safety that the company possesses to cover short-term debts.
Common liquidity ratios include the current ratio, the quick ratio and the operating cash flow ratio. Different analysts consider different assets to be relevant in calculating liquidity. Some analysts will calculate only the sum of cash and equivalents divided by current liabilities because they feel that they are the most liquid assets, and would be the most likely to be used to cover short-term debts in an emergency.
In our analysis we are considering Quick Ratio
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