Financial Analysis of Tcs and Tech Mahindra

Topics: Balance sheet, Financial ratio, Financial ratios Pages: 24 (6305 words) Published: November 29, 2012
ACCOUNTS PROJECT
Submitted By: Kriti Singh
Roll No: 236
Section-D, LBSIM, Delhi

1.) Calculation of Ratios:
(All figures used For calculation are in Rs crores)

Liquidity Ratios:

1. Current Ratio
Formula:

Current Ratio=Current Assets /Current Liability

Current Ratio of TCS : For 2012: 23275.09/10465.01 = 2.224
For 2011: 17036.41/7246.03 = 2.3511| |

Current Ratio of Tech Mahindra: For 2012: 19809/17007 = 1.16475 For 2011: 18412/15295 = 1.20379

2. Quick Ratio
Formula:

Quick Ratio= Quick Current Assets/Current Liability

Quick Ratio of TCS:For 2012: 23257.32/10465.01 = 2.2223
For 2011: 17013.59/7246.03 = 2.347

Quick Ratio of Tech Mahindra: For 2012: 19807/17007 = 1.16463 For 2011: 18406/15295 = 1.20339

3. Cash ratio:

Formula:

|

Cash Ratio of TCS: For 2012: 6003.37/10465.01 =0.5736
For 2011: 4700.85/7246.03 =0.648

Cash Ratio of Tech Mahindra: For 2012: 1389/17007 = 0.081
For 2011: 1938/15295 = 0.126

Leverage Ratios:

1. Debt-Assets Ratio:
Formula:
Debt to Assets = total debt / total assets

Debt-Assets Ratio of TCS: For 2012: 116.26/41394.49 =0.0028 For 2011: 69.27/32681.04 =0.0021

Debt-Assets Ratio of Tech Mahindra: For 2012: 11266/63454 = 0.177 For 2011: 11827/60804 =0.194

2. Debt Equity Ratio:
Formula:
Debt to Equity Ratio = (Short Term Debt + Long Term Debt)/Tangible N. W.
Debt to Equity Ratio of TCS:For 2012: 116.26/29840.13 =0.003 For 2011: 69.27/24651.22 =0.002

Debt to Equity Ratio of Tech Mahindra: For 2012: 11266/34369 = 0.327 For 2011: 11827/33810 =0.349

3. Interest coverage Ratio

Formula:

Interest Coverage Ratio = (EBIT) / interest.

Interest coverage Ratio of TCS: For 2012: 13945.54/22.23 =627.32 For 2011: 11047.1/26.48 =417.18

Interest coverage Ratio of Tech Mahindra: For 2012: 7494/1025 =7.3112 For 2011: 9173/1113 =8.2416

4. Total Debt Ratio:
Formula:
Total Debt Ratio = Total Debt / Capital Employed

Total Debt Ratio of TCS: For 2012: 116.26/30929.48 =0.00375 For 2011: 69.27/25435.01 =0.0027

Total Debt Ratio of Tech Mahindra: For 2012: 11266/46447 = 0.2425 For 2011: 11827/45509 =0.259

Activity Ratios:

1. Inventory turnover Ratio:

Formula:
Inventory Turnover Ratio = Cost of Goods Sold/Inventory Cost

Inventory turnover Ratio of TCS:For 2012: 35398.69/ 17.77 =1992.04 For 2011: 26907.89/22.82 =1179.132

Inventory turnover Ratio of Tech Mahindra:For 2012: 46638/2 =23319 For 2011: 42861/6 =7143.5

2. Receivable’s turnover Ratios:

Formula:

Receivable Turnover Ratio = Sales/ Accounts Receivable

Receivable’s turnover Ratio of TCS:For 2012: 48893.83/11520.35 =4.244 For 2011: 37324.51/8194.97 =4.554

Receivable’s turnover Ratio of Tech Mahindra:For 2012: 52430/12431 =4.217 For 2011: 49655/9643 =5.149

3. Payable turnover Ratios:

Formula:

Payable Turnover Ratio = Cost/ Average Payables

Payable turnover Ratio of TCS:For 2012: 35398.69/ 3247.87 =10.89 For 2011: 26907.89/2572.33 =10.46

Payable turnover Ratio of Tech Mahindra:For 2012: 46638/4684 =9.956 For 2011:...