Financial statement analysis of Wipro.pdf

Financial statement analysis of Wipro. Balance sheet, Statement of Cashflows and Profit & Loss. Calculated Liquidity Ratios, Activity Ratios, Leverage Ratios and Profitability Ratios.

1. FINANCIAL STATEMENT
ANALYSIS of

Manpreet Nayak
Regd. No. 200409120061
Sub - Business accounting
BBA 2
nd
sem

5. LIQUIDITY RATIO
1. Current Ratio = Current Assets = 4,57,133 = 2.77
Current Liabilities 1,64,438

2. Quick Ratio = Current Assets - Inventories
Current Liabilities
= 4,57,133 - 1,741 = 2.76
1,64,438

3. Cash Ratio = Cash + short-term investments
Current Liabilities
= 1,04,440 + 1,89,635 = 1.78
1,64,438

4. Net Working Capital ratio = Current assets - Current Liabilities
Net Current assets - Fixed assets
= Current assets - Current liabilities
(Current Assets - Current liabilities) - Fixed assets
= 4,57,133 - 1,64,438 = 2,92,695
2,92,695 - 50,473 2,42,222
= 1.2
(Fixed Assets = Property , plant & Equipment)

ACTIVITY RATIOS
1. Inventory Turnover = Cost of goods Sold
Average Inventory

6. = Total Expenses
(Beginning Inventories + Ending Inventories) / 2
= 4,18,759 = 4,18,759
(1,741 + 1,599) / 2 3,340 / 2
= 4,18,759 = 250.75 times
1,670

2. Debtors Turnover = Credit Sales
Debtors
= 5,03,877 = 4.55 times
1,10,534
(Debtors = Accounts Receivable = Trade Receivable + Unbilled Receivable)

3.Net Assets Turnover = Sales = Sales
Net Assets Total assets - Total liabilities
= 5,03,877 = 5,03,877
6,53,064 - 1,88,527 4,64,537
= 1.08 times

LEVERAGE RATIOS
1. Debt Equity Ratio = Total long term debt
Shareholder’s Fund
= Current portion of Borrowings + Non-current portion of borrowings
Total equity
= 251 + 50,019 = 50,270
4,64,537 4,64,537
= 0.1

7. 2. Total liabilities to total assets Ratio = Total Liabilities
Total Assets
= 1,88,527 = 0.28
6,53,064

3. Proprietary Ratio = Proprietor’s Fund
Total assets
= 4,64,537 = 0.71
6,53,064

PROFITABILITY RATIO

1. Gross Profit Margin = Gross profit = Revenue - Cost of goods Sold
Sales Sales
= 5,28,836 - 4,18,759 = 1,10,077 = 0.21
5,03,877 5,03,877

2. Net Profit Margin = Net Profit = 86,807 = 0.17
Sales 5,03,877

3. Return on Investment = Earnings before Interest & Taxes
Total assets
= 1,10,077 = 0.16
6,53,064

4. Return on Equity = Profit After Taxes (PAT) = Profit After Taxes
Net worth Total assets - Total liabilities

8. = 86,807 = 86,807 = 0.18
6,53,064 - 1,88,527 4,64,537

5. Earning Per Share = Profit After Tax (PAT)
No. Of shares Outstanding
= 86,807000000 = 14.84
5,847,823,239

6.Price earning Ratio = Market Price per Share
Earning per Share
= 184.15 = 12.4
14.84

7. Dividend Pay-out Ratio = Dividend per Share
Earning per Share
= Dividend Paid / No. Of Shares Outstanding
Earning Per Share
= 20,46,00,00,000 / 5,84,78,23,239
14.84
= 3.49 = 0.23
14.84