Corporate Examples of Solvency Ratios
The Present Chapter
The analysis of the solvency of the IT sector in India has been approached here. A comparative study of the ratios of the two key players in the sector, namely TCS and Infosys, has been done. The IT sector overview and the companies’ profiles have been discussed in the previous chapter.
Analysis
TCS
The solvency ratios of TCS are summarized as follows.
As can be seen from Table 9.1, the leverage ratios for TCS have been very low (almost negligible) for the past three annual periods. Each ratio can be analyzed as follows:
Table 9.1 Solvency ratios of TCS
|
2011–12 |
2012–13 |
2013–14 |
|
|
Debt ratio |
0.27 |
0.24 |
0.23 |
|
Debt–equity ratio |
0.004 |
0.005 |
0.003 |
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