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SERVICES OFFERED
Engineering and R&D quality Services(ERS)
INDUSTRIES SERVED
FINANCIAL SERVICES EDUCATION TELECOM RETAIL TRAVEL MANUFACTURING MEDIA & ENTERTAINMENT TRANSPORTATION & LOGISTICS ENERGY & UTILITIES
WHY ANALYZE?
The goal of Financial Analysis is to provide Economic Decision makers with useful information.
RATIO ANALYSIS
Calculations between different sets of data on the Annual report to determine the short-term Financial health and longterm Financial health of the firm.
LIQUIDITY RATIOS
A class of financial metrics that is used to determine a company's ability to pay off its short-terms debts obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts.
CURRENT RATIO
YEAR CURRENT RATIO 2005 .81 2006 .99 2007 1.41 2008 1.12 2009 1.59
CASH RATIO
YEAR CASH RATIO 2005 0.12 2006 0.09 2007 0.27 2008 0.26 2009 0.52
LEVERAGE RATIOS
Leverage ratios provide an indication of the long term solvency of the firm. Leverage ratios measure the extent to which the firm is using long term debt .
TURNOVER RATIOS
A measure of the number of times a company's inventory is replaced during a given time period. Turnover ratio is calculated as cost of goods sold divided by average inventory during the time period. A high turnover ratio is a sign that the company is producing and selling its goods or services very quickly.
TURNOVER RATIOS
TOTAL ASSESTS TURNOVER RATIO:-The total asset turnover represents the amount of revenue generated by a company as a result of its assets on hand. SHORT TERM ASSETS TURNOVER RATIO: represents the amount of revenue generated by a company as a result of its short term assets on hand. WORKING CAPITAL TURNOVER RATIO:-A measurement comparing the depletion of working capital to the generation of sales over a given period. This provides some useful information as to how effectively a company is using its working capital to generate sales DEBTORS TURNOVER RATIO:-in simple words its the average time which debtors take to pay .
PROFITABILITY RATIOS
A class of financial metrics that are used to assess a business's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time. For most of these ratios, having a higher value relative to a competitor's ratio or the same ratio from a previous period is indicative that the company is doing well.
Market Value Ratios relate an observable market value, the stock price, to book values obtained from the firm's financial statements.
RECOMMENDATION
After examining the annual reports of HCLT of previous five years, we can say that HCLT has grown year by year and has improved it business. Even qualitative analysis suggests that HCLT has bagged several new projects viz in New Zealand and in Europe and also bagged some domestic projects and they are planning to expand their business. So it will be a wise decision to invest in HCLT. As HCLT is looking good in its IT business and it also looked strong in recession so it is advisable to invest in HCLT to get good returns and safety in investments.
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