Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Are these three companies run similar business? There are other ratios indicating the earnings and profitability. What is EBIT? If two companies have the same

Are these three companies run similar business? There are other ratios indicating the earnings and profitability. What is EBIT? If two companies have the same EBIT, would they have the same ROA too?

image text in transcribed

The Three Companies we are choosing to make anaysis are Rate answer Infosys, HCL and TCS PArticulars Infosys TATA HCL SALES 907,910 1,569,490 706,760 OTHER INCOME 28.030 45,920 5,890 TOTAL REVENUE 935940 1615410 712650 GROSS PROFIT 222,670 421090 173160 PROFIT BEFORE TAX 220,070 422,480 139800 TAX 53,680 98,010 29,230 PROFIT AFTER TAX 166,390 324,470 110,570 GROSS PROFIT MARGIN( GP/SALES) 24.5 26.8 24.5 NET PROFIT MARGIN(NP/SALES) 18.3 20.7 15.6 RETURN ON ASSETS 18.1 27.6 13.9 RETURN ON EQUITY 25.4 38.6 21.6 PRICE OF SHARE 214 418 260 PRICE EARNING RATIO 17.3 22.6 19.2 IF WE SEE THE ABOVE DATA TCS IS BEST PERFORMING COMPANY OUT OF OTHER TWO IT HAS BETTER PRICE EARNING RATIO AS WELL ASSET SECURITY IS GOOD IN TCS. THAT IS WHY MARKET PRICE OF TCS IS MORE THAN OTHER TWO. IN PAST TWO YEARS THE REVNUE GENERATED BY TCS ARE BETTER THAN OTHER TWO COMPANIES. TCS IS BEING SUPPORTED DURING PANDEMIC TIMES BECAUSE OF ITS SOCIAL CAUSE AS WELL. THE COMPANY HAD NOT ON PROVEN ITSELF ON FINANCIAL TERMS BUT HAS ALSO SERVED ON SOCIAL CAUSE THEREBY BUILDING A POSITIVE IMAGE IN MINDS OF USERS. IF WE SEE HCL AND INFOSYS PRICE OF HCL IS MORE THOUGH PROFITS EARNED BY INFOSYS ARE MORE.. SEEING THE PROFITS AND ASSET RATIO WE CAN EXPECT PRICE RISE IN SHARES OF INFOSYS IN NEAR FUTURE

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Sterling Bonds And Fixed Income Handbook

Authors: Mark Glowrey

1st Edition

0857190423, 978-0857190420

More Books

Students also viewed these Finance questions