Profitabilty Ratios Infosys

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It also provided a comparison of Infosys with other IT Majors

PROFITABILITY RATIOS

BusinessWeek’s Global Rankings
COMPANY OVERALL RANK REVENUE GROWTH RETURN ON EQUITY SHAREHOLDER RETURN

INFOSYS

10

49.8(20)

33.4(14)

75.2(11)

TCS

12

36.6(36)

70.5(3)

44.3(28)

WIPRO

23

39.2(31)

27.9(27)

41.4(30)

? GROSS MARGIN RATIO = GROSS PROFIT / NET SALES
= 3204.73/6859.66 =46.71%

? NET MARGIN RATIO = NET PROFIT / SALES = 1859 / 6859.66 = 27.10%

? OPERATING MARGIN RATIO = OPERATING PROFIT / SALES = 2325.11 / 6859.66 = 33.89%

? R O N A = NOPAT / NET ASSETS
= 1999.81 / 3879 = 51.55%

? R O T A = NOPAT / TOTAL ASSETS = 1999.81 / 5225.04 = 38.27% ? R O E = NET PROFIT / NET WORTH = 1859.19 / 5242 = 35.46%

INFOSYS
Gross Profit Net Profit EBIT (operating Profit) NOPAT Sales Net Assets Total Assets Net Worth

2005
3204.73 1859.19 2325.11 1999.81 6859.66 3879 5225.04 5242

2004
2265.58 1243.47 1583.65 1356.65 4760.89 2190.42 3934.04 3253

2003
1809.534 957.93 1,272.04 1,071.04 3,622.69 2,790.64 3,530.68 2860

Gross Margin Ratio(%) Net Margin Ratio(%) Operating Margin Ratio(%) RONA(%) ROTA(%) ROE(%)

46.7184963 27.1032384 33.8954117 51.5547822 38.2735826 35.4671881

47.5873 26.1184 33.2637 61.9356 34.4849 38.2253

49.95 26.4425 35.1131 38.3797 30.3352 33.4926

Lets Compare……

gross profit margin 50 45 40 35 30 25 20 15 10 5 0 46.71

30.49 23.07 gross profit margin

WIPRO

TCS

INFOSYS

net profit margin 30 25 20 15 10 5 0 WIPRO TCS INFOSYS net profit margin 24.65 20.45 27.1

operating profit margin 40 35 30 25 20 15 10 5 0 WIPRO TCS INFOSYS operating profit margin 25.64 30.18

33.89



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