Chapter 9

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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