DEGREE OF FINANCIAL LEVERAGE DFL = EBIT/EBIT-INTEREST-PREFERANCE DIVIDEND/1-CORPRATE TAX YEAR 2006 2005 2004 DFL 0.50 0.51 0.52
CURRENT RATIOCurrent Ratio = Current Assets / Current Liabilities • Current Liability coverage: Higher the current ratio, greater is the assurance we have that current liabilities will be paid. • Buffer against losses: Current Ratio shows the margin of safety available to cover shrinkage in non cash current asset values when ultimately disposing off or liquidating them • Reserve of liquid funds: It is the measure of margin of safety against uncertainties and random shocks to the company’s cash flows.
ABOUT TCS TCS is one of the top software companies in the world Tata Consultancy Services started in 1968. The first Indian company to make forays into the US market with clients ranging from IBM, American Express, Sega etc. TCS is presently the top software services firm in Asia. About 90 percent of TCS' revenue comes from consulting. TCS has already patented 12 E-Commerce solution product packages and has filed six more applications for patent licences. The present CEO of the company isMr.S.Ramadorai. The companies strength is about 14,000. The company TCS is listed in National Stock Exchange and Bombay Stock Exchange in India. TCS HAS 50 SUBSIDIARIES ACROSS THE GLOBE.
AREA OF BUSINESS IT SERVICE BUSINESS SOLUTION OUT SOURCING BUSINESS PROCESS OUT SOURCING CONSULTING ENTERPRIZE SOLUTION IT MANUFACTURING SERVICE ENGINEERING AN D INDUSTRIAL SERVICE INTER NATIONAL MARKET AFRICA ASIA PACIFIC CHINA EUROPE MIDDLE EAST NORTH AND SOUTH AMERICA
3 MAIN STRENGTHS OF TCS APPLY TECHNOLOGY WITH FINANCIAL CONSTRAIN THEY PROVIDE EXPERIENCE IN ADVANCE AND COMPLEX TECHNOLOGY PROJECTS. THEY HAVE EXTENSIVE EXPERIENCE IN MULTI VENDOR INTEROPERABILITY
SOLVENCY RATIO DEBT EQUITY RATIO It is a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what proportion of equity and debt the company is using to finance its assets. DER = LTL / Shareholder's Equity