Ratio Analysis of Hcl Tech Essay

It provides softw atomic number 18-led IT solutions, remote infrastructure vigilance and BPO services, foc utilise chiefly on transformational outsourcing. The caller-out leverages its extensive offshore infrastructure and global network of offices in 31 countries to deliver solutions across selected verticals including financial services, retail and consumer, life sciences, aerospace, automotive, semiconductors, telecom, media publishing and entertainment. HCL takes pride in its philosophy of Employees First, Customers Second which empowers their 84,403 employees to create a true value for the customers.HCL Technologies, along with its subsidiaries, had consolidated revenues of US$ 4. 5 billion, as on 31st March 2013. HCL Leadership team 2. Objectives of Study Development of industries depends on several factors such as financial, personnel, technology, quality of product and marketing. Financial boldnesss remove a significant role in de boundaryining the growth of industrie s. every last(predicate) the companys ope symmetryns virtually affect its need for cash. almost of these information covering operations area are however away the direct responsibility of the financial executives.The firm whose present operations are inherently difficult should try to makes its financial compendium to enable its management to stay on top of its working position. In this context I am undertaking financial ratio depth psychology of HCL Technologies to examine and show financial performance of the company. Using ratio analysis this project leave provide the insights of * The growth and development of HCL Technologies for last 5 years (FY 08-12) * The behavior of liquidity and profitability of HCL Technologies * The factors determining the liquidity and profitability of HCL TechnologiesScope The stove of the study is limited to financial data published in the one-year reports of the company every year. The analysis is done to suggest possible solutions for fi nancial growth of the organization. This study is carried out for 5 years (2008-2012). Also data provided by external agencies are used for analysis of future predication. 3. thought of Financial Statement & dimension Analysis 2 3. 2 Financial StatementTo understand the information contained in financial statements with a view to know the intensity level or weaknesses of the organization, to make forecast virtually future prospects and thereby enabling the management and external parties to take distinguishable terminations regarding the operations. Fundamental analysis has a very broad scope. One aspect looks at the general (qualitative) factors of the company. The other side considers tangible and measurable factors ( quantifiable). This content crunching and analyzing numbers from the financial statements if used in conjunction with other methods, quantitative analysis can produce excellent results.Ratio Analysis Ratio analysis is the method or process by which relation ship/ assemblage of items in the financial statement are computed, pin downd and presented. Ratio analysis is an attempt to derive quantitative measure or guides concerning the financial wellness and profitability of business openings. Ratio analysis can be used both in trend and static analysis. Purpose of several ratios depends on the objective of analysis. A financial ratio measures a companys performance in a specific area. For example, you could use a ratio of a companys debt to its equity to measure a companys gearing.By comparing the gearing ratios of two companies, you can determine which company uses greater debt per equity. You can use this information to make a judgment as to which company is better investment risk. However, you must be careful not to place too much importance on one ratio. You obtain better indication of the direction in which a company is moving when several ratios are taken as a crowd. Ratios are worked out to analyze the following aspects of an ent erprise a. Solvency i. Long term ii. Short term iii. Immediate b. Profitability c. Operational Efficiency d. credence standing e.Effective utilization of resources f. Investment Analysis 3. 4 importee of Ratio Analysis in Financial Statement Ratio analysis is very important in revealing the financial position and wiseness of the business so used by various parties * commission The group that has the most interest in financial statement analysis is management. Management needs to discover quickly any area of mismanagement so that corrective action can be quickly taken. It mainly helps in * Decision making Ratio analysis helps in making decision from the information provided in these financial Statements.Financial forecasting and planning think is looking ahead and the ratios calculated for a number of years a work as a guide for the future. * Communicating The financial strength and weakness of a firm are communicated in a to a greater extent easy and understandable manner using ratios. * Co-ordination Better communication of aptitude and weakness of an enterprise result in better co-ordination in the enterprise * Control The weaknesses are otherwise, if any, come to the knowledge of the managerial, which helps, in effective go over of the business. * Investors or ShareholdersInvestors are interested in financial statements to evaluate received earnings and to predict future earnings. Financial statements influence greatly the cost at which stock is bought and sold. * Lenders Bankers before granting loans usually require that financial statements be submitted. Whether or not a loan is make depends heavily on a companys financial condition and its prospects for the future. * Employees Employees are mainly concerned about the profitability. Their salaries and increments are dependent on the profit made by the company. * Government