Answer to Question #170710 in Management for harsh

Question

Q 1. Explain the Financial Progress / Regress of the hcl technologies (in Rs. Cr) 2018, 2019, 2020, 2021 ,on the basis your analysis.

Q 2 .Compare your results with established bench marks.

Particulars Year before previous Year Previous Year Current Year Year after Current Year Profitability Ratios           Gross Margin 28.81% 32.15% 30.12% 30.20%   Net Margin 15.09% 15.74% 13.55% 13.61%   ROCE % 25% 26% 27.44% 22%   ROE 21% 23% 19.50% 19%   EPS (Rs.) 62.55 74.29 76.63 84.92   Dividend Per Share 16.65 10.32 24.52 32.76               Liquidity Ratios           Current Ratio 2.46 2.60 1.98 2.66   Acid Test Ratio 2.48 2.59 1.98 2.66   Cash Ratio 0.40 0.68 0.27 0.68               Turnover Ratios           CA T/o Ratio 2.04 2.01 2.19 2.07   Inventory T/O Ratio 209.30 450.55 462.26 461.54   Drs. T/O Ratio 19.06% 19.37% 19.37% 19.37%   ACP ( Days)                       Capital Structure Ratios           Debt to Equity Ratio 0.28 0.28 0.33 0.25   Debt to T A Ratio 0.01 0.07 0.07 0.06   TL to NW 5.72 5.67 5.60 6.28   Int. Coverage Ratio 80.91 105.76 98.91 111               Valuation Ratios           Book Value 120.72 144.55 127.69 187.41   Earnings Yield 6.17% 5.36% 8.86% 8.96%   Dividend Yield 23.17% 38.61% 27.69% 23.24%   P / E 0.06 0.05 0.09 0.09   P / B 0.03 0.03 0.05 0.04               Du Pont Ratios           RoE 0.21 0.23 0.20 0.19   Operating Profit 15.09% 15.74% 13.55% 13.61%   Opr. Efficiencty 0.30 0.26 0.28 0.24   Financial Leverage  0.01 0.09 0.08 0.07   cy+2

calculate cy+2 (altman's z score)

Answer 1

Question 1: Financial Progress/Regress of HCL Technologies had an upward trend between 2018 and 2019, them a downward trends from 2020 due to e forward-looking statements that involve risks, uncertainties, like COVID-19 pandemic, assumptions and other factors causing actual results to differ materially.

Question 2: The values of 'altman's z score' is given by;

​ζ = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

• A is the Working Capital/Total Assets ratio
• B is the Retained Earnings/Total Assets ratio
• C is the Earnings Before Interest and Tax/Total Assets ratio
• D is the Market Value of Equity/Total Liabilities ratio
• E is the Total Sales/Total Assets ratio

= 1.9