'Ratio Analysis of Hcl Tech Essay\r'

'It provides softw be-led IT solutions, remote root word management and BPO services, foc habituated mainly on transformational outsourcing. The alliance leverages its extensive offshore basis and global net invent of offices in 31 countries to deliver solutions across selected verticals including pecuniary services, retail and consumer, life sciences, aerospace, automotive, semiconductors, telecom, media publishing and entertainment. HCL lends pride in its philosophy of â€Å"Employees First, Customers Second” which empowers their 84,403 employees to create a real value for the customers.\r\nHCL Technologies, along with its subsidiaries, had consolidate revenues of US$ 4. 5 billion, as on 31st March 2013. HCL Leadership police squad 2. Objectives of Study Development of industries depends on several(prenominal) factors such as monetary, personnel, technology, quality of ingathering and marketing. fiscal perspectives assume a monumental role in ascertain the yield of industries. All the comp some(prenominal)’s ope balancens virtually affect its need for cash. just about of these data covering ope symmetryns sector argon however out expression the handle responsibility of the pecuniary executives.\r\nThe firm whose fork out operations atomic number 18 inherently hard-fought should try to identifys its financial abridgment to enable its management to stay on light up of its working position. In this context I am undertaking financial ratio analysis of HCL Technologies to examine and understand financial exploit of the caller-out. Using ratio analysis this project will provide the insights of †* The yield and development of HCL Technologies for last 5 geezerhood (FY 08-12) * The behavior of liquidity and profitability of HCL Technologies * The factors de terminalining the liquidity and profitability of HCL Technologies\r\nScope The kitchen stove of the fill is limited to financial data published in the annual repor ts of the company e actually year. The analysis is done to show possible solutions for financial growth of the organization. This study is carried out for 5 years (2008-2012). besides data provided by external agencies ar practised for analysis of future(a) predication. 3. idea of Financial Statement & angstrom;amp; Ratio abridgment 2 3. 2 Financial Statement\r\nTo understand the education contained in financial statements with a take up to know the strength or weaknesses of the organization, to make forecast about future prospects and thereby enabling the management and external parties to take different decisions 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 (quantitative). This means crunching and analyzing poem from the financial statements if used in unification with other methods, quantitative analysis support produ ce excellent results.\r\nRatio Analysis Ratio analysis is the method or process by which relationship/ convocation of items in the financial statement argon computed, hold ind and presented. Ratio analysis is an prove to derive quantitative measure or guides concerning the financial health and profitability of duty enterprisingnesss. Ratio analysis can be used both in course of study and static analysis. Purpose of several ratios depends on the objective of analysis. A financial ratio measures a company’s performance in a specific ara. For example, you could use a ratio of a company’s debt to its equity to measure a company’s gearing.\r\nBy 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 thinker as to which company is better(p) investing risk. However, you must be c areful non to place too much splendour on one ratio. You obtain better indication of th e direction in which a company is moving when several ratios are taken as a group. Ratios are worked out to analyze the following aspects of an enterprise: a. Solvency: i. Long term ii. Short term iii. Immediate b. Profitability c. Operational ability d. Credit standing e.\r\nEffective consumption of resources f. Investment Analysis 3. 4 consequence of Ratio Analysis in Financial Statement Ratio analysis is very important in revealing the financial position and soundness of the business so used by various parties * vigilance: The group that has the most interest in financial statement analysis is management. solicitude needs to discover apace any area of mismanagement so that corrective action can be quickly taken. It mainly helps in: * Decision devising: Ratio analysis helps in making decision from the information provided in these financial Statements.\r\nFinancial forecasting and planning: mean is looking ahead and the ratios calculated for a number of years a work as a guide for the future. * communication: The financial strength and weakness of a firm are communicated in a more easy and understandable personal manner using ratios. * Co-ordination: Better communication of cleverness and weakness of an enterprise result in better co-ordination in the enterprise * gibe: The weaknesses are otherwise, if any, come to the knowledge of the managerial, which helps, in effective control of the business. * Investors or Shareholders\r\nInvestors are interested in financial statements to treasure current earnings and to predict future earnings. Financial statements influence greatly the determine at which stock is bought and sold. * Lenders: Bankers before granting loans unremarkably require that financial statements be submitted. Whether or not a loan is do depends heavily on a company’s 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 make by the company. * Government:\r\n'