Description
This is a spreadsheet describes on the balance sheet analysis of TCS.
BALANCE SHEETS(TATA CONSULTANCY SERVICES) Crores SOURCES OF FUNDS : 1.SHAREHOLDERS’ FUND (a) Share Capital (b) Reserves and Surplus 2.LOAN FUNDS (a) Secured Loans (b) Unsecured Loans TOTAL Loans 3.DEFERRED TAX LIABILITY (NET) 4.TOTAL FUNDS EMPLOYED APPLICATION OF FUNDS : 5.FIXED ASSETS (a) Gross Block (b) Less :- Accumulated Depreciation (c) Net Block (d) Capital Work-in-Progress Total 6.INVESTMENTS 7.CURRENT ASSETS, LOANS AND ADVANCES (a) Unbilled Revenues (b) Sundry Debtors (c) Cash and Bank Balances (d) Loans and Advances 8.CURRENT LIABILITIES AND PROVISIONS (a) Current Liabilities (b) Provisions 9.NET CURRENT ASSETS [ (7) less (8) ] 10.TOTAL ASSETS (NET)
As at March 31, 2004
36.44 10.64 Nil 375 375 0.98 423.06
226.5 0.95 225.55 Nil 225.55 417.39
Nil 0.25 2.25 9.77 12.27 227.22 4.93 232.15 -219.88 423.06
As at March 31, 2005
As at March 2006
As at March 2007
48.01 3273.04 111.01 9.73 120.74 64.32 3506.11
48.93 5949.88 26.52 8.98 35.5 38.88 5683.71
97.86 7961.13 41.76 8.98 50.74 60.61 8170.34
1041.09 132.93 908.16 120.28 1028.44 1404.42
1695.13 525.35 1169.78 280 1449.78 1963.52
2315.36 854.75 1460.61 757.85 2218.46 3252.04
130.09 1463.45 120.74 600.83 2315.11 714.28 527.58 1241.86 1073.25 3506.11
353.91 2326.63 171.17 1107.87 3982.85 1171.9 540.54 1712.44 2270.41 5683.71
523.88 2799.8 557.14 1313.39 5206.78 1639.5 905.05 2544.55 2662.23 8170.34
As at March 2008
As at March 2009
197.86 10806.95 9.27 8.98 18.25 121.38 11144.44
197.86 13248.39 32.63 7.74 40 103.05 13589.67
3240.64 1300.11 1940.53 889.74 2830.27 4509.33
4359.24 1690.16 2669.08 685.13 3354.21 5936.03
870.18 3747.01 527.52 2166.6 7329.57 2404.18 1187.44 3591.62 3737.95 11144.44
817.06 3717.73 1605.26 3089.85 9247.14 3501.13 1450.23 4951.36 4295.78 13589.67
Profit & Loss Accounts(TATA CONSULTANCY SERVICES) INCOME : 1. Consultancy services 2. Software licences 3. Other income
2004
Nil Nil 4.29
EXPENDITURE : 4. Employee costs 5. Operation and Other expenses
Nil 0.03
PROFIT BEFORE ADDITIONAL INCENTIVE, INTEREST, DEPRECIATION, TAXES AND EXCEPTIONAL ITEMS 6. Additional Performance Incentive 7. Interest 8. Depreciation PROFIT BEFORE TAXES AND EXCEPTIONAL ITEMS 9. PROVISION FOR TAXES (a) Current tax (b) Deferred tax (c) Fringe benefit tax (d) MAT credit entitlement PROFIT BEFORE EXCEPTIONAL ITEMS 10. Profit on sale of long-term investment 11. Tax on transfer of overseas branches 12. Charge on account of Employee Stock Purchase Scheme NET PROFIT FOR THE YEAR
4.26 Nil 0.2 0.84 3.22 -1.11 -0.38 Nil
1.73 13.45 Nil Nil 15.18
2005
2006
2007
2008
7854.48 173.1 75
10673.22 541.64 67.95
14407.95 532.02 216.55
17690.38 843.34 445.95
1763.83 3784.48
4000.6 3945.99
6446.37 4192.63
6015.19 7498.42
2554.27 102 10.4 133.22 2308.65 -241 -39.76 Nil Nil 2027.89 Nil -9.82 -186.65 1831.42
3336.22 Nil 4.49 257.38 3074.35 -322.41 -14.82 -20.25 Nil 2716.87 Nil Nil Nil 2716.87
4517.52 Nil 3.43 343.41 4170.68 -406.84 11.2 -17.75 Nil 3757.29 Nil Nil Nil 3757.29
5466.06 Nil 3.42 458.78 5003.86 -792.05 -29.98 -24.65 351.58 4508.76 Nil Nil Nil 4508.76
2009
21535.75 868.25 -456.24
7370.09 9013.08
5564.6 Nil 7.44 417.46 5139.69 -799.15 -44.89 -23 423.56 4696.21 Nil Nil Nil 4696.21
(ALL figures in Rs. Crores) Profitability Ratios Profit Margin profit after tax Sales Ratio 2004 1.73 4.29 40.32% 2005 2027.89 8102.58 25% 2006 2716.89 2007 3757.29 2008 4508.76 2009 4696.21
11293.76 15156.52 18979.67 21947.76 24% 24.80% 23.70% 21.40%
45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2004 2005 2006 2007 2008 2009
Series1
Return on assets
2004
2005
2006
2007
2008
2009
Average Total Assets profit after tax Ratio
1964.5 1.73 0.09%
4594.91 2027.89 44.13%
6927.025 2716.89 39.22%
9657 3757.29 38.91%
12366 4508.76 36.46%
13589 4696.21 34.56%
50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2004 2005 2006 2007 2008 2009 Series1
Return on Investments
2004
2005
2006
2007
2008
2009
Average Investments profit after tax Ratio
910 1.73 0.20%
1683 2027.89 120%
2607 2716.89 104%
3880 3757.29 97%
5222 4508.76 86%
5936 4696.21 79%
140.00% 120.00% 100.00% 80.00% 60.00% Series1
40.00%
20.00% 0.00% 2004 2005 2006 2007 2008 2009
Return On Equity
2004
2005
2006
2007
2008
2009
profit after tax Average Share holder Equity Ratio
1.73 1683 0%
2027.89 4464 45%
2716.89 6833 40%
3757.29 9530 39%
4508.76 12224 37%
4696.21 13567 35%
50% 40% 30% 20% 10% 0% 2004 2005 2006 2007 2008 2009
Series1
EPS
2004
2005
2006
2007
2008
2009
EPS Calculated in Notebook
0.33
21.55
27.76
38.39
46.07
47.91
60 50 40 30 20 10 0 2004 2005 2006 2007 2008 2009 Series1
Operating Expenses ratio
2004
2005
2006
2007
2008
2009
Sales Operating Expenses Ratio
4.29 0.03 1%
8102.58 3784 47%
11293.76 15156.52 18979.67 21947.76 3945 4192 7498 9013 35% 28% 40% 41%
50% 40% 30% 20% 10% 0% 2004 2005 2006 2007 2008 2009 Series1
Return on Capital
2004
2005
2006
2007
2008
2009
Profit before Interest, Tax Total Capital Ratio
3.4
2318
3079
4517
4174
5146
423 3506 5709 8170 11124 13589 0.008038 0.661152 0.539324 0.552876 0.375225 0.378689
0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2004 2005 2006 2007 2008 2009 Series1
Liquidity Ratios
Current Ratio Current Assets Current Liabilities Ratio
2004 12.27 227.22 0.054001
2005 2315.11 714.28 3.24118
2006 3982.85 1171.9
2007 5206.78 1639.5
2008 7329.57 2404.18
2009 9247.14 3501.13
3.398626 3.175834 3.048678 2.641187
4 3.5 3 2.5 2 1.5 1 Series1
0.5
0 2004 2005 2006 2007 2008 2009
Quick Ratio
2004
2005
2006
2007
2008
2009
Quick Assets Current Liabilities Ratio
2.5 227 0.011013
1589 714 2.22549
2498 1180
3359 1689
4276 2404
5323 3501
2.116949 1.988751 1.778702 1.520423
2.5 2 1.5 1 0.5 0 2004 2005 2006 2007 2008 2009 Series1
ALR
2004
2005
2006
2007
2008
2009
Absolutely Liquid Assets Current Liabilities Ratio
2.25 227
120.74 714
171 1180
557 1689
527 2404
1605 3501 0.45844
0.009912 0.169104 0.144915 0.329781 0.219218
0.5 0.4 0.3 0.2 0.1 0 2004 2005 2006 2007 2008 2009 Series1
Solvency Ratios
Debt to Equity Ratio Total Loans Shareholder's Equity Ratio
2004 375 47 >7
2005 120 3321
2006 35 5608
2007 50 8058
2008 18 11004
2009 40 13446
0.036134 0.006241 0.006205 0.001636 0.002975
0.04
0.035
0.03 0.025 0.02 0.015 0.01 0.005 0 2004 2005 2006 2007 2008 2009 Series1
Interest cover
2004
2005
2006
2007
2008
2009
Profit before Interest, Tax Interest Ratio
3.4 0.2 17
1400 1200 1000 800 600 400 200 0 2004
2318 10.4
3079 4.5
4517 3.43 1316.91
4174 3.42
5146 7.44
222.8846 684.2222
1220.468 691.6667
Series1
2005
2006
2007
2008
2009
Liabilities to Equity Ratio Liabilities Shareholder's Equity Ratio
2004 423.06 47 12.8 >10
1.2 1 0.8
2005 3506.11 3321 1.055739
2006 5683.71 5608 1.0135
2007 8170.34 8058
2008
2009
11144.44 13589.67 11004 13446
1.013941 1.012763 1.010685
0.8 0.6 0.4 0.2 0 2004 2005 2006 2007 2008 2009
Series1
Capital Market Ratios
Price-Earnings Ratio EPS Price Ratio
2004
2005
2006
2007
2008
2009
0.33 21.55 27.76 38.39 46.07 47.91 1 1 1 1 1 1 3 Very High 0.046404 0.036023 0.026048 0.021706 0.020872
0.05 0.045
0.045 0.04 0.035
0.03
0.025 0.02 0.015 0.01 0.005 0 2004 2005 2006 2007 2008 2009 Series1
Efficiency Ratios Average turnover Average 2004 1964.5 2005 4594.91 2006 6927 2007 9657 2008 12366 2009 13589
Total Assets Sales Ratio
4.29 0.22%
8102.58 176.34%
11293.76 15156.52 18979.67 21947.76 163.04% 156.95% 153.48% 161.51%
200.00% 150.00% 100.00%
Series1
50.00%
0.00% 2004 2005 2006 2007 2008 2009
For the ratio analysis of TATA CONSULTANCY SERVICES LIMITED, the following points are worth mentioning: 1.
We can see from the profitability ratios, that from 2004 to 2009, the profitability is declining steadily, this may be of competition offered by other players like Infosys, and due to the global recession.
2.
TATA CONSULTANCY SERVICES LIMITED was listed publicaly in the year 2004, so we can see that the ratios for 20 abnormal in nature (vastly different than following years.) EPS (Earnings per share) has been increasing steadily, so TCS has been an investor friendly company. The good thing is that debt-equity ratio has declined over the years, lending a safer platform to TCS Interest coverage declined significantly in 2009, indicating after-shocks of the global meltdown.
3. 4. 5. 6.
Not many efficiency ratios can be calculated for TCS as it is a service company, and the inventories are very insig
orth mentioning:
ty is declining steadily, this may be because
o we can see that the ratios for 2004 are
tor friendly company.
safer platform to TCS
lobal meltdown. and the inventories are very insignificant.
doc_834937301.xlsx
This is a spreadsheet describes on the balance sheet analysis of TCS.
BALANCE SHEETS(TATA CONSULTANCY SERVICES) Crores SOURCES OF FUNDS : 1.SHAREHOLDERS’ FUND (a) Share Capital (b) Reserves and Surplus 2.LOAN FUNDS (a) Secured Loans (b) Unsecured Loans TOTAL Loans 3.DEFERRED TAX LIABILITY (NET) 4.TOTAL FUNDS EMPLOYED APPLICATION OF FUNDS : 5.FIXED ASSETS (a) Gross Block (b) Less :- Accumulated Depreciation (c) Net Block (d) Capital Work-in-Progress Total 6.INVESTMENTS 7.CURRENT ASSETS, LOANS AND ADVANCES (a) Unbilled Revenues (b) Sundry Debtors (c) Cash and Bank Balances (d) Loans and Advances 8.CURRENT LIABILITIES AND PROVISIONS (a) Current Liabilities (b) Provisions 9.NET CURRENT ASSETS [ (7) less (8) ] 10.TOTAL ASSETS (NET)
As at March 31, 2004
36.44 10.64 Nil 375 375 0.98 423.06
226.5 0.95 225.55 Nil 225.55 417.39
Nil 0.25 2.25 9.77 12.27 227.22 4.93 232.15 -219.88 423.06
As at March 31, 2005
As at March 2006
As at March 2007
48.01 3273.04 111.01 9.73 120.74 64.32 3506.11
48.93 5949.88 26.52 8.98 35.5 38.88 5683.71
97.86 7961.13 41.76 8.98 50.74 60.61 8170.34
1041.09 132.93 908.16 120.28 1028.44 1404.42
1695.13 525.35 1169.78 280 1449.78 1963.52
2315.36 854.75 1460.61 757.85 2218.46 3252.04
130.09 1463.45 120.74 600.83 2315.11 714.28 527.58 1241.86 1073.25 3506.11
353.91 2326.63 171.17 1107.87 3982.85 1171.9 540.54 1712.44 2270.41 5683.71
523.88 2799.8 557.14 1313.39 5206.78 1639.5 905.05 2544.55 2662.23 8170.34
As at March 2008
As at March 2009
197.86 10806.95 9.27 8.98 18.25 121.38 11144.44
197.86 13248.39 32.63 7.74 40 103.05 13589.67
3240.64 1300.11 1940.53 889.74 2830.27 4509.33
4359.24 1690.16 2669.08 685.13 3354.21 5936.03
870.18 3747.01 527.52 2166.6 7329.57 2404.18 1187.44 3591.62 3737.95 11144.44
817.06 3717.73 1605.26 3089.85 9247.14 3501.13 1450.23 4951.36 4295.78 13589.67
Profit & Loss Accounts(TATA CONSULTANCY SERVICES) INCOME : 1. Consultancy services 2. Software licences 3. Other income
2004
Nil Nil 4.29
EXPENDITURE : 4. Employee costs 5. Operation and Other expenses
Nil 0.03
PROFIT BEFORE ADDITIONAL INCENTIVE, INTEREST, DEPRECIATION, TAXES AND EXCEPTIONAL ITEMS 6. Additional Performance Incentive 7. Interest 8. Depreciation PROFIT BEFORE TAXES AND EXCEPTIONAL ITEMS 9. PROVISION FOR TAXES (a) Current tax (b) Deferred tax (c) Fringe benefit tax (d) MAT credit entitlement PROFIT BEFORE EXCEPTIONAL ITEMS 10. Profit on sale of long-term investment 11. Tax on transfer of overseas branches 12. Charge on account of Employee Stock Purchase Scheme NET PROFIT FOR THE YEAR
4.26 Nil 0.2 0.84 3.22 -1.11 -0.38 Nil
1.73 13.45 Nil Nil 15.18
2005
2006
2007
2008
7854.48 173.1 75
10673.22 541.64 67.95
14407.95 532.02 216.55
17690.38 843.34 445.95
1763.83 3784.48
4000.6 3945.99
6446.37 4192.63
6015.19 7498.42
2554.27 102 10.4 133.22 2308.65 -241 -39.76 Nil Nil 2027.89 Nil -9.82 -186.65 1831.42
3336.22 Nil 4.49 257.38 3074.35 -322.41 -14.82 -20.25 Nil 2716.87 Nil Nil Nil 2716.87
4517.52 Nil 3.43 343.41 4170.68 -406.84 11.2 -17.75 Nil 3757.29 Nil Nil Nil 3757.29
5466.06 Nil 3.42 458.78 5003.86 -792.05 -29.98 -24.65 351.58 4508.76 Nil Nil Nil 4508.76
2009
21535.75 868.25 -456.24
7370.09 9013.08
5564.6 Nil 7.44 417.46 5139.69 -799.15 -44.89 -23 423.56 4696.21 Nil Nil Nil 4696.21
(ALL figures in Rs. Crores) Profitability Ratios Profit Margin profit after tax Sales Ratio 2004 1.73 4.29 40.32% 2005 2027.89 8102.58 25% 2006 2716.89 2007 3757.29 2008 4508.76 2009 4696.21
11293.76 15156.52 18979.67 21947.76 24% 24.80% 23.70% 21.40%
45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2004 2005 2006 2007 2008 2009
Series1
Return on assets
2004
2005
2006
2007
2008
2009
Average Total Assets profit after tax Ratio
1964.5 1.73 0.09%
4594.91 2027.89 44.13%
6927.025 2716.89 39.22%
9657 3757.29 38.91%
12366 4508.76 36.46%
13589 4696.21 34.56%
50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2004 2005 2006 2007 2008 2009 Series1
Return on Investments
2004
2005
2006
2007
2008
2009
Average Investments profit after tax Ratio
910 1.73 0.20%
1683 2027.89 120%
2607 2716.89 104%
3880 3757.29 97%
5222 4508.76 86%
5936 4696.21 79%
140.00% 120.00% 100.00% 80.00% 60.00% Series1
40.00%
20.00% 0.00% 2004 2005 2006 2007 2008 2009
Return On Equity
2004
2005
2006
2007
2008
2009
profit after tax Average Share holder Equity Ratio
1.73 1683 0%
2027.89 4464 45%
2716.89 6833 40%
3757.29 9530 39%
4508.76 12224 37%
4696.21 13567 35%
50% 40% 30% 20% 10% 0% 2004 2005 2006 2007 2008 2009
Series1
EPS
2004
2005
2006
2007
2008
2009
EPS Calculated in Notebook
0.33
21.55
27.76
38.39
46.07
47.91
60 50 40 30 20 10 0 2004 2005 2006 2007 2008 2009 Series1
Operating Expenses ratio
2004
2005
2006
2007
2008
2009
Sales Operating Expenses Ratio
4.29 0.03 1%
8102.58 3784 47%
11293.76 15156.52 18979.67 21947.76 3945 4192 7498 9013 35% 28% 40% 41%
50% 40% 30% 20% 10% 0% 2004 2005 2006 2007 2008 2009 Series1
Return on Capital
2004
2005
2006
2007
2008
2009
Profit before Interest, Tax Total Capital Ratio
3.4
2318
3079
4517
4174
5146
423 3506 5709 8170 11124 13589 0.008038 0.661152 0.539324 0.552876 0.375225 0.378689
0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2004 2005 2006 2007 2008 2009 Series1
Liquidity Ratios
Current Ratio Current Assets Current Liabilities Ratio
2004 12.27 227.22 0.054001
2005 2315.11 714.28 3.24118
2006 3982.85 1171.9
2007 5206.78 1639.5
2008 7329.57 2404.18
2009 9247.14 3501.13
3.398626 3.175834 3.048678 2.641187
4 3.5 3 2.5 2 1.5 1 Series1
0.5
0 2004 2005 2006 2007 2008 2009
Quick Ratio
2004
2005
2006
2007
2008
2009
Quick Assets Current Liabilities Ratio
2.5 227 0.011013
1589 714 2.22549
2498 1180
3359 1689
4276 2404
5323 3501
2.116949 1.988751 1.778702 1.520423
2.5 2 1.5 1 0.5 0 2004 2005 2006 2007 2008 2009 Series1
ALR
2004
2005
2006
2007
2008
2009
Absolutely Liquid Assets Current Liabilities Ratio
2.25 227
120.74 714
171 1180
557 1689
527 2404
1605 3501 0.45844
0.009912 0.169104 0.144915 0.329781 0.219218
0.5 0.4 0.3 0.2 0.1 0 2004 2005 2006 2007 2008 2009 Series1
Solvency Ratios
Debt to Equity Ratio Total Loans Shareholder's Equity Ratio
2004 375 47 >7
2005 120 3321
2006 35 5608
2007 50 8058
2008 18 11004
2009 40 13446
0.036134 0.006241 0.006205 0.001636 0.002975
0.04
0.035
0.03 0.025 0.02 0.015 0.01 0.005 0 2004 2005 2006 2007 2008 2009 Series1
Interest cover
2004
2005
2006
2007
2008
2009
Profit before Interest, Tax Interest Ratio
3.4 0.2 17
1400 1200 1000 800 600 400 200 0 2004
2318 10.4
3079 4.5
4517 3.43 1316.91
4174 3.42
5146 7.44
222.8846 684.2222
1220.468 691.6667
Series1
2005
2006
2007
2008
2009
Liabilities to Equity Ratio Liabilities Shareholder's Equity Ratio
2004 423.06 47 12.8 >10
1.2 1 0.8
2005 3506.11 3321 1.055739
2006 5683.71 5608 1.0135
2007 8170.34 8058
2008
2009
11144.44 13589.67 11004 13446
1.013941 1.012763 1.010685
0.8 0.6 0.4 0.2 0 2004 2005 2006 2007 2008 2009
Series1
Capital Market Ratios
Price-Earnings Ratio EPS Price Ratio
2004
2005
2006
2007
2008
2009
0.33 21.55 27.76 38.39 46.07 47.91 1 1 1 1 1 1 3 Very High 0.046404 0.036023 0.026048 0.021706 0.020872
0.05 0.045
0.045 0.04 0.035
0.03
0.025 0.02 0.015 0.01 0.005 0 2004 2005 2006 2007 2008 2009 Series1
Efficiency Ratios Average turnover Average 2004 1964.5 2005 4594.91 2006 6927 2007 9657 2008 12366 2009 13589
Total Assets Sales Ratio
4.29 0.22%
8102.58 176.34%
11293.76 15156.52 18979.67 21947.76 163.04% 156.95% 153.48% 161.51%
200.00% 150.00% 100.00%
Series1
50.00%
0.00% 2004 2005 2006 2007 2008 2009
For the ratio analysis of TATA CONSULTANCY SERVICES LIMITED, the following points are worth mentioning: 1.
We can see from the profitability ratios, that from 2004 to 2009, the profitability is declining steadily, this may be of competition offered by other players like Infosys, and due to the global recession.
2.
TATA CONSULTANCY SERVICES LIMITED was listed publicaly in the year 2004, so we can see that the ratios for 20 abnormal in nature (vastly different than following years.) EPS (Earnings per share) has been increasing steadily, so TCS has been an investor friendly company. The good thing is that debt-equity ratio has declined over the years, lending a safer platform to TCS Interest coverage declined significantly in 2009, indicating after-shocks of the global meltdown.
3. 4. 5. 6.
Not many efficiency ratios can be calculated for TCS as it is a service company, and the inventories are very insig
orth mentioning:
ty is declining steadily, this may be because
o we can see that the ratios for 2004 are
tor friendly company.
safer platform to TCS
lobal meltdown. and the inventories are very insignificant.
doc_834937301.xlsx