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    Accounts (Wipro)

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    Pranav Kumar
    Wipro is a leading global IT consulting and services company. This document analyzes Wipro's financial ratios over three years to evaluate its profitability, liquidity, operational efficiency, and solvency. Key ratios like gross profit margin, return on assets, current ratio, and debt-to-equity are calculated from Wipro's financial statements. The analysis finds that Wipro is profitable with increasing revenues, but net profits have not risen as much due to higher expenses. Liquidity is low to boost profitability, but current and quick ratios are declining. The conclusion recommends Wipro focus on increasing sales, profits, and meeting current obligations while controlling expenses.

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    © All Rights Reserved
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    Accounts (Wipro)

    Uploaded by

    Pranav Kumar
    28 views8 pages
    Wipro is a leading global IT consulting and services company. This document analyzes Wipro's financial ratios over three years to evaluate its profitability, liquidity, operational efficiency, and solvency. Key ratios like gross profit margin, return on assets, current ratio, and debt-to-equity are calculated from Wipro's financial statements. The analysis finds that Wipro is profitable with increasing revenues, but net profits have not risen as much due to higher expenses. Liquidity is low to boost profitability, but current and quick ratios are declining. The conclusion recommends Wipro focus on increasing sales, profits, and meeting current obligations while controlling expenses.

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    Wipro is a leading global IT consulting and services company. This document analyzes Wipro's financial ratios over three years to evaluate its profitability, liquidity, operational efficiency, and solvency. Key ratios like gross profit margin, return on assets, current ratio, and debt-to-equity are calculated from Wipro's financial statements. The analysis finds that Wipro is profitable with increasing revenues, but net profits have not risen as much due to higher expenses. Liquidity is low to boost profitability, but current and quick ratios are declining. The conclusion recommends Wipro focus on increasing sales, profits, and meeting current obligations while controlling expenses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    28 views8 pages

    Accounts (Wipro)

    Uploaded by

    Pranav Kumar
    Wipro is a leading global IT consulting and services company. This document analyzes Wipro's financial ratios over three years to evaluate its profitability, liquidity, operational efficiency, and solvency. Key ratios like gross profit margin, return on assets, current ratio, and debt-to-equity are calculated from Wipro's financial statements. The analysis finds that Wipro is profitable with increasing revenues, but net profits have not risen as much due to higher expenses. Liquidity is low to boost profitability, but current and quick ratios are declining. The conclusion recommends Wipro focus on increasing sales, profits, and meeting current obligations while controlling expenses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 8

    Ratio Analysis of Wipro

    New Delhi Institute Of Management


    Submitted to:-

    Submitted By:- Vishal V Nair(22192)

    Abhishek Jain (22133)

    Disha Tyagi (22146)

    Pankaj Bhatt (22167)

    Rituparna Borah (22176)

    Hema Das (22151)

    Rohit Sharma (22177)


    CONTENT
    1. About Company
    2. How Wipro Is Affecting the market
    3. Financial Highlights
    4. Key Ratios
    5. What is Ratio Analysis and Ratios used
    in Wipro
    6. Ratio Analysis Of Wipro (Excel Sheet
    Hyperlink)
    7. Conclusion
    8. Recommendation
    ABOUT COMPANY
    Wipro Limited is a leading global information technology, consulting and
    business process services company. We harness the power of cognitive
    computing, hyper-automation, robotics, cloud, analytics and emerging
    technologies to help our clients adapt to the digital world and make them
    successful. A company recognized globally for its comprehensive portfolio of
    services, strong commitment to sustainability and good corporate citizenship,
    we have over 200,000 dedicated employees serving clients across six
    continents. Together, we discover ideas and connect the dots to build a better
    and a bold new future.

    How Wipro is affecting the market ?


    In India, Wipro has taken a lead by launching its neutral B2B IT portal–01markets.com.
    Realizing a huge market potential for IT-specific products and services and
    Wipro’s own extensive domain knowledge in the segment, it is positioning
    itself as the first mover into the IT e-marketplace domain. Speaking about the
    inception of 01markets, Mythili Ramesh, GM, marketing and services, 01markets,
    says, “We got the idea in July 99 after realizing that Wipro had a high
    domain knowledge which could be explored to the fullest.” She adds,
    “We felt we were in a good position to avail of this opportunity, given our
    background of more than 20 years in the IT industry, domain expertise, technical
    knowledge, customer base, process knowledge and a strong brand name.”
    Agrees Pradeep Kapoor, CEO, Godrej Infotech, “01markets.com has started in
    a small way and is gradually strengthening its positioning over a period of
    time.”
    FINANCIAL HIGHLIGHTS

    1) IT services operating margin refers to segment results total as reflected in IFRS financials

    2) Net Income has been considered after adjusting for profit attributable to non-controlling
    interest (minority interest)

    3) Attrition rates refers to voluntary attrition computed on a trailing twelve-month basis


    excluding Digital Operations & Platform, a service line which is a part of the I CORE business

    4) For convenience, the market capitalization in Indian Rupees as per NSE have been
    translated into United States Dollars at the certified foreign exchange rate published by the
    Federal Reserve Board of Governors on the last day of the respective financial years

    5) Pay-out Ratio has been computed by dividing the payout (comprising interim and final
    dividend declared for the respective financial year and buyback, if any, considered based on the
    date of the Board’s approval) to shareholders by net income on a trailing three-year basis.
    KEY RATIOS
    RATIO ANALYSIS
    Ratio analysis is a quantitative method of gaining insight into a company's
    liquidity, operational efficiency, and profitability by studying its financial
    statements such as the balance sheet and income statement. Ratio analysis is
    a cornerstone of fundamental equity analysis.

     Ratio analysis compares line-item data from a company's financial


    statements to reveal insights regarding profitability, liquidity,
    operational efficiency, and solvency.
     Ratio analysis can mark how a company is performing over time, while
    comparing a company to another within the same industry or sector.
     Ratio analysis may also be required by external parties that set
    benchmarks often tied to risk.
     While ratios offer useful insight into a company, they should be paired
    with other metrics, to obtain a broader picture of a company's financial
    health.
     Examples of ratio analysis include current ratio, gross profit margin
    ratio, inventory turnover ratio.
    RATIOS USED IN WIPRO

    1) Profitability ratios
    These ratios convey how well a company can generate profits from its
    operations. Profit margin, return on assets, return on equity, return on capital
    employed, and gross margin ratios are all examples of profitability ratios. We
    used :-
     Gross profit ratio
     Net profit Ratio
     Return on asset Ratio

    2) Liquidity Ratios
    Liquidity ratios measure a company's ability to pay off its short-term debts as
    they become due, using the company's current or quick assets. Liquidity ratios
    include the current ratio, quick ratio, and working capital ratio. We used:-

     Current ratios
     Quick ratios
     Inventory turnover ratios

    3) Solvency Ratios
    Also called financial leverage ratios, solvency ratios compare a company's debt
    levels with its assets, equity, and earnings, to evaluate the likelihood of a
    company staying afloat over the long haul, by paying off its long-term debt as
    well as the interest on its debt. Examples of solvency ratios include: debt-
    equity ratios, debt-assets ratios, and interest coverage ratios. We used:-

     Debt to equity Ratio


     Liabilities to equity Ratios
     Interest coverage ratios
    Excel sheet link
     Wipro Ratio Analysisxlsx.xlsx

    Conclusion
    According to our research we found that the company’s overall position is
    good, the company is achieving sufficient profits since last 3 years. Fixed assets
    are efficiently utilized by the company due to which the profit of the company
    is increasing every year. The long term solvency of company is good. The
    company maintains low liquidity to achieve high profitability. Inventory
    turnover ratio is increasing as compared to last years. Asset turnover ratio has
    decreased a little bit as compared to last year. Though the company’s sale is
    increasing but the net profit has not increased so much so management should
    take some steps to decrease its expenses.

    Recommendations
     The company’s future plan for expansion seem clear due to increased
    investment in fixed assets, efficient use of these assets has enabled the
    company to observe an increased profit.
     Though the company’s sale is continuously rising the net profit has not
    much incline, so management should take some measures to decrease
    its expenses.
     Company should try it’s best to increase sales and profit.
     Current ratio and Quick ratio has a continuous decline past three years
    so, the company should try to meet its current obligations.

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