Answer to Question #172148 in Management for harsh

Question

Hcl Technologies

Ratios

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  

Q2) Calculate cy+2 for all ratios

Q3) Explain the financial progress/ regress of the company, on the basis of your analysis?

Q4) Compare your results with established benchmark?

Answer 1

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

​ζ = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

• A $=\frac{Working Capital}{Total Assets}$
• B $=\frac{Retained Earningsl}{Total Assets}$
• C $=\frac{Earnings Before Interest and Tax}{Total Assets}$
• D $=\frac{Market Value of the Equity}{Total Assets}$
• E $=\frac{Total Sales}{Total Assets}$

= 1.9

Question 3: The forward-looking statements involve risks, uncertainties, like the COVID-19 pandemic, assumptions, and other factors causing actual results to differ materially.

Question 4: Financial Progress/Regress of HCL Technologies had an upward trend between 2018 and 2019, them a downward trend from 2020. Hence, the results and established benchmark insights can lead to improved performance.