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Capital structure analysis


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Capital structure analysis

  1. 1. CAPITAL STRUCTURE ANALYSIS OF<br />MARUTI & INFOSYS<br />By:<br />PriyatoshPradhan(29)<br />
  2. 2. PROJECT STUDY<br />
  3. 3. Maruti Suzuki India Ltd is one of India's leading automobile manufacturers.<br />Maruti Suzuki India Limited (MUL) was established in Feb 1981.<br />Introduction <br />
  4. 4. BOARD OF DIRECTORS<br />
  5. 5.
  6. 6. Objective of “MUL”<br />• Modernization of the Indian Automobile Industry.<br />• Production of fuel-efficient vehicles to conserve scarce<br />resources.<br />• Production of large number of motor vehicles which was<br />necessary for economic growth.<br />
  8. 8.
  9. 9. MARKET SHARE<br />
  10. 10. DEBT AND EQUETY<br />
  11. 11. RATIO ANALYSIS<br />LIQUIDITY RATIO:<br />These are the indicators of the ability of the company to convert its assets into cash or to<br />obtain cash to meet short term obligations<br />WORKING CAPITAL:<br />Working capital is a widely used measure of liquidity.<br />Working Capital = Current Assets – Current Liabilities<br />
  12. 12. TREND ANALYSIS<br />
  13. 13. DER = LTL / Shareholder's Equity<br />
  14. 14. Debt Ratio<br />Debt Ratio = Total Debt / Total Assets<br />Equity Ratio<br />Equity Ratio = Net worth / Total Assets<br />
  15. 15. TREND ANALYSIS<br />A new plant opened at Manesar near Gurgaon in 2006. <br />NEW K SERIES PLANT INSTALLED IN PUNE IN 2007-08.<br />
  16. 16. FINANCIAL ANALYSIS<br /> INFOSYS <br />
  17. 17. Infosys<br />Company’s profile<br /><ul><li> Infosys a Banglore based company started in 1981 .
  18. 18. The company was the first in India to register on the American stock exchange - NASDAQ with an issue of two million American Depository Shares(ADR)that raised $70 million. </li></ul>Development centers in India –<br />Mohali, Mangalore, Mysore, Hyderabad, Pune, Chennai and Bhubhaneshwar<br /><ul><li> Pioneered in ESOP in INDIA.
  19. 19. 5thbest managed company in Asia.</li></li></ul><li>Global presence<br /><ul><li>Global development center in TORONTO.
  20. 20. Two Proximity center at 1.Freemont.</li></ul> 2.California<br /> 3.Boston<br /><ul><li>Infosys continues to expand in Europe.</li></li></ul><li>Management Profile<br />The board consists of senior officers of Infosys including all active founders, along with external members of the board who are global leaders and high achievers in business and society. <br />
  21. 21. Independent Members of Board :<br />Rama Bijapukar<br />Dr.OmkarGoswami<br />SridarIyengar<br />Deepak M satwalekar<br />Claude Smadja<br />Dr.Marti G Subrahmanyam<br />David L Boyles<br />Prof.Jaffrey Sean Lehman<br />Infosys Executives,members of the Board and CFO:<br />V.Balakrishnan,CFO<br />Srinath Batni<br />K.Dinesh<br />N.R,Narayana Murthy<br />Nandan M. Nilekani<br />
  22. 22. NEXT GENERATION BUSINESS MODEL<br />2008<br />2001<br />1996<br />1981<br />
  23. 23. COMPETITIVE SITUATION<br />High quality Delivery And offering<br /><ul><li>Established track record of Quality.</li></ul>Abundand Skilled Resources<br /><ul><li>2.5 million english speaking graduate pools.</li></ul>Established Industry<br /><ul><li>Services markets(including BPO) estumated at $50 billion in 2008 ,export to grow to $60 billion in 2010. </li></ul>Strong Govt. Support<br />Significant benefit<br /><ul><li>Large intangible benefits such as reduce time to market.</li></li></ul><li>Balance Sheet Of Infosys<br />
  24. 24. OPERATING PROFIT<br />
  25. 25. Equity Capital<br />
  26. 26. Graphical form<br />
  27. 27. Strong and Liquid Balance Sheet<br /><ul><li>Highly liquid .
  28. 28. Zero debt
  29. 29. Dividends up to 30% of annual post-tax profits
  30. 30. Superior return on invested capital & capital employed</li></li></ul><li>SOLVENCY RATIO<br />DEBT EQUITY RATIO<br />It is a measure of a company's financial leverage calculated by dividing its total liabilities<br />by stockholders' equity. It indicates what proportion of equity and debt the company is<br />using to finance its assets.<br />DER = LTL / Shareholder's Equity<br />
  31. 31. <ul><li> Higher the current ratio, greater is the assurance</li></ul> we have that current liabilities will be paid.<br /><ul><li>Total assets divided by shareholder equity. Asset/equity ratio is often used as a measure of leverage.(Equity Ratio = Net worth / Total Assets)</li></li></ul><li>COMPARITIVE ANALYSIS<br />
  32. 32. SOURCES OF FUND<br />INFOSYS<br />MARUTI<br />
  33. 33. Maruti<br />Infosys<br />
  34. 34. Maruti<br /><ul><li>Infosys has no Debt.</li></li></ul><li>Solvency Ratios<br />Debt Equity Analysis<br />Maruti<br />Infosys<br />
  35. 35. INFERENCE<br />This project helped us to know the various insights of the companies(Maruti and Infosys).We came across the various financial aspects of the companies and it is clear that the solvency of Infosys is better than that of Maruti.<br />