Financial Analysis on Tata Consultancy Services
FINANCIAL ANALYSIS
ON
TATA CONSULTANCY SERVICES
SUBMITTED
TO
PROF . D.V.RAMANA
Debasis Sarangi(77)
Dhanya K(78)
Dinesh Kumar Mandal(80
TABLE OF CONTENTS
1. Acknowledgments……………………………………………………………….3
2. Executive Summary……………………………………………………………...4
3. Environment Analysis…………………………………………………………...5
4. IT Industry Overview……………………………………………………………6
5. Company Analysis………………………………………………………………10
6. Ratio Analysis…………………………………………………………………...15 Liquidity Ratios…………………………………………………………….15 Efficiency Ratios…………………………………………………………...19 Solvency Ratios………………………………………………………….....21 Profitability…………………………………………………………………25 Market Based Returns………………………………………………………34
7 DuPont Analysis…………………………………………………………………36
8 Economic Value Analysis……………………………………..…………………41
9 Inter Company Analysis………………………………………………………....44
10 Accounting Policies……………………………………………………………..48
11 References……………………………………………………………………….55
1. ACKNOWLEDGEMENTS
We would like to take this opportunity to express our gratitude and respect to Prof D V Ramana for all the efforts that he took to make the concepts clear to each and every one of us. Financial Accounting being a totally new subject to many of us, he made sure that we were getting the concepts right every now and then by way of repeated explanations, quizzes and so on. We would like to thank him once again for his unprecedented dedication and commitment towards the course and the students which made it quite an easy ride for us.
2.EXECUTIVE SUMMARY
The project report details the financial analysis done on India’s Largest Software Firm, Tata Consultancy Services. The environment and industry is studied and then the position and the policies of the company. The FSA is primarily done through various ratios which indicate the company’s liquidity, solvency, efficiency, profitability, market returns and the like. A DuPont Analysis is also carried out to estimate the returns on assets, capital employed etc.
An inter-company analysis has
ON
TATA CONSULTANCY SERVICES
SUBMITTED
TO
PROF . D.V.RAMANA
Debasis Sarangi(77)
Dhanya K(78)
Dinesh Kumar Mandal(80
TABLE OF CONTENTS
1. Acknowledgments……………………………………………………………….3
2. Executive Summary……………………………………………………………...4
3. Environment Analysis…………………………………………………………...5
4. IT Industry Overview……………………………………………………………6
5. Company Analysis………………………………………………………………10
6. Ratio Analysis…………………………………………………………………...15 Liquidity Ratios…………………………………………………………….15 Efficiency Ratios…………………………………………………………...19 Solvency Ratios………………………………………………………….....21 Profitability…………………………………………………………………25 Market Based Returns………………………………………………………34
7 DuPont Analysis…………………………………………………………………36
8 Economic Value Analysis……………………………………..…………………41
9 Inter Company Analysis………………………………………………………....44
10 Accounting Policies……………………………………………………………..48
11 References……………………………………………………………………….55
1. ACKNOWLEDGEMENTS
We would like to take this opportunity to express our gratitude and respect to Prof D V Ramana for all the efforts that he took to make the concepts clear to each and every one of us. Financial Accounting being a totally new subject to many of us, he made sure that we were getting the concepts right every now and then by way of repeated explanations, quizzes and so on. We would like to thank him once again for his unprecedented dedication and commitment towards the course and the students which made it quite an easy ride for us.
2.EXECUTIVE SUMMARY
The project report details the financial analysis done on India’s Largest Software Firm, Tata Consultancy Services. The environment and industry is studied and then the position and the policies of the company. The FSA is primarily done through various ratios which indicate the company’s liquidity, solvency, efficiency, profitability, market returns and the like. A DuPont Analysis is also carried out to estimate the returns on assets, capital employed etc.
An inter-company analysis has