Analysis of Infosys Ltd

Liquidity Ratios
2006 2005

Current Ratio Liquid Ratio

2.699:1 2.699:1

2.73:1 2.73:1

As there is no inventory and Prepaid Expenses Current & Liquid Ratio is same. There is not much difference in liquidity position of 2005 & 2006.The companys ratio current ratio is close to ideal ratio i.e 2:1. It reflects that company can meet its current liabilities or short term debts through current assets. Liquid Ratio is also good for the company, it shows how quickly asset can be converted into cash.

Analysis of Infosys Ltd

Solvency Ratio
2006 2005

Debt/Equity Ratio Debt/Asset Ratio

0.345 0.2753

0.2992 0.226

Company D/E Ratio is less than 1 this shows that company uses more equity than debt to finance its assets. This is good for the company, as investors pay more attention to these ratios while investing. While the companys Debt Asset Ratio is quite low which shows that company's major assets are financed through equity.

Profitability Ratio
2006 Gross Profit Margin Net Profit Margin Operating Profit 46.79 26.03 29.32 2005 47.19 25.89 30.46

High Gross Profit Ratio of the Company shows that manufacturing cost of software & other products are quite high. Net Profit Margin of company is high for both the years, this shows that company has been consistently performing well.

Analysis of Infosys Ltd

Profitability Ratio
2006 Return On Equity Return on Capital Employed Return on Asset 1816% 11.39% 30.73% 2005

There is a huge earning for shareholders of the company as ROE is 1816%, the shareholders must invest this fund to have favorable debt/equity structure. The return from asset is also very high at 30.73%.

Analysis of Infosys Ltd

2006 Debtor Turnover Ratio Debtor Collection Period Inventory Turnover Ratio Creditor Turnover Ratio Creditor Collection Period 6.50 56 days 11.976% 30.5 days

The company debt collection period on average is 56 days, the company can make strict credit policy to lower the credit days to customer. The creditor collection period is less as a result the company must have some cash in hand as debtors will take around 56 days to pay the money to company.

Analysis of Raymond Ltd

Liquidity Ratio
2006 Current Ratio Liquid Ratio 2.367:1 1.28:1 0.944:1 0.514:1 2005

The current ratio improved from 2005 to 2006, mainly due to decrease in the Current Liability of the company. Company s liquidity ratio also improved from 2005.

Analysis of Raymond Ltd

Solvency Ratios
2006 Debt Equity Ratio Debt Asset Ratio 1.13 0.50 2005 0.865 0.43

Company s D/E is low in 2005, which further increased in 2006. Due to increase in the Secured & Unsecured loan in 2006 there is an increase in DE Ratio. D/E Ratio indicates that company has been using more of Debt than Equity to finance its assets. While lower DA Ratio indicates that major of the company s asset are financed through equity.

Analysis of Raymond Ltd

Profitability Ratio
2006 Gross Profit Margin Net Profit Margin Operating Profit 53.75% 8.5% 12.23% 2005 53.46% 6.20% 8.19%

Company is having huge amount of operating cost, which is resulting in low profits margin. The Gross Profit Margin of the Raymond ltd is good for both the years. As Raymond Ltd is also prevalent in Retail Sector, it can have huge Selling & Advertising Expenses.

Analysis of Raymond Ltd

Activity Ratios
2006 Debtor Turnover Ratio Debtor Collection Period Inventory Turnover Ratio Creditor Turnover Ratio Creditor Collection Period 5.955 61 days 5.01 73 days

Debtor Collection Period is less than the creditor collection Period, as a result company can receive money from their Debtors and give to the creditors.

Analysis of Raymond Ltd

Profitability Ratios
2006 Return on Equity Return on Capital Employed Return on Assets 234% 16.56% 5.872%

Shareholders are earning huge amount of income as ROE is 234%. For every one Re invested by them the company is receiving Rs. 234. Return on Capital Employed shows the efficiency & profitability of company capital investments, generally it should be higher than the rate at which company borrows. ROA shows how better the company using its assets to generate revenue. ROA for the company like Raymond is good as in textile industry generally it is low.

Analysis of Blue Dart Ltd

Liquidity Ratio
2006 Current Ratio Liquid Ratio 2.17 2.14 2005 2.29 2.25

Current Ratio for the company for both years is close to ideal ratio. It reflects the company s ability to pay short-term debts, as a result Blue Dart is in good position. The liquid ratio also don t show any major variations in 2 years. So we can say that company is in good position.

Analysis of Blue Dart Ltd

Solvency Ratios
2006 Debt/Equity Ratio Debt/Asset Ratio 0.317 1.0005 2005 0.2559 1.0012

Blue Dart has been maintaining DE Ratio to good levels, which shows they do not depend highly External Financing & uses more of Equity to finance. This is n good for company, as more of equity reduces the burden of interests. Whereas the Debt Asset Ratio of the company shows that it equally uses debt and equity o finance its assets.

Analysis of Blue Dart Ltd

Profitability Ratios
2006 Gross Profit Margin Net Profit Margin Operating Profit 36.43% 7.54% 18.60% 2005 40.44% 10.53% 22.96%

The company is maintaining high profit margins in both the years. Due to high operating cost & Taxes there is a decline company s net profits. As Blue Dart is a service industry Taxes are generally high.

Analysis of Blue Dart Ltd

Activity Ratios
2006 Debtor Turnover Ratio Debtor Collection Period Inventory Turnover Ratio Creditor Turnover Ratio Creditor Collection Period 8.605 42.5 days 12.69 29 days

Company s Credit Collection Period is less than the Debtor Collection Period, as a result company may fall short of cash in order to pay to its creditors. The company should change its credit policy in order to overcome this problem.

Analysis of Hindustan Unilever Ltd

Liquidity Ratios
2006 Current Ratio Liquid Ratio 0.68:1 0.23:1 2005 0.90:1 0.38:1

The current ratio of the company is quite low in both the years, this reflects company s difficulty in meeting its short term liabilities. From investors point of view this is not a good sign for the company. The liquid Ratio is also very low, indicating that company

Analysis of Hindustan Unilever Ltd

Solvency Ratios
2006 Debt/Equity Ratio Debt/Asset Ratio 0.4940 2.90 2005 0.3868 3.436

The Debt Equity Ratio of the company is less than 1, it shows that company uses more of equity financing than External Financing. On the other hand Debt Asset Ratio is high, it means that company use more of debt to finance its assets. Financing more from equity reduces the burden of interest, as a result enhances company s position in the market.

Analysis of Hindustan Unilever Ltd

Profitability Ratio
2006 Gross Profit Margin Net Profit Margin Operating Profit 43.47% 11.82% 14.06% 2005 44.32% 11.5% 15.21%

Low operating profit can be attributed to the higher operating costs of the company like advertising & marketing costs. Still the company which deals in so many consumer goods is able to maintain healthy profit margin in both years.

Analysis of Hindustan Unilever Ltd

Activity Ratios
2006 Debtor Turnover Ratio Debtor Collection Period Inventory Turnover Ratio Creditor Turnover Ratio Creditor Collection Period 19.94 18.30 days 3.93 92.8 days

The Debtor Collection Period is very less as compared to Creditor Collection Period, as a result company has the scope of investing money in other businesses and the pay the creditors.