Quantitative analysis of Wipro

Ratio Analysis
 Introduction. Ratio analysis is a quantitative procedure of obtaining a
look into a firm’s functional efficiency, liquidity, revenues, and
profitability by analysing its financial records and statements.

Liquidity Ratio- This type of ratio helps in measuring the ability of a company
to take care of its short-term debt obligations.

7
Liquid Ratio
6
5
4
3
2
1
0
Mar-22 Mar-21 Mar-20 Mar-19 Mar-18

Current Ratio (X) Quick Ratio (X)

Profitability Ratio- This type of ratio helps in measuring the ability of a

company in earning sufficient profits.

Profitability Ratio
30
20
10
0
Mar-21 Mar-20 Mar-19 Mar-18

Profit Margin Analysis Return on assets

Return on equity
Debt Equity Ratio- The debt-equity ratio, a renowned ratio in the financial
markets, is defined as a ratio of debts to equity. It is often calculated to have an
idea about the long-term financial solvency of a business.

Debt Equity Ratio

2
1.5
1
0.5
0
Mar-22 Mar-21 Mar-20 Mar-19 Mar-18

Debt Equity Ratio Debt ratio

Capitalization Ratio

Operating Performance Ratio-Operating performance ratios are intended to

measure different aspects of an organization's core operations. The focus of
these measurements is on the efficient use of resources to generate sales, as well
as how well assets can be converted into cash.

Opearting Performance ratio

Fixed Asset Turnover
12
10
8
6
4
2
0
Mar-22 Mar-21 Mar-20 Mar-19 Mar-18
Cash Flow Indicator Ratio-The cash flow coverage ratio is an indicator of the
ability of a company to pay interest and principal amounts when they become
due. This ratio tells the number of times the financial obligations of a company
are covered by its earnings. A ratio equal to one or more than one means that
the company is in good financial health and it can meet its financial obligations
through the cash generated by operating activities. A ratio of less than one is an
indicator of bankruptcy of the company within two years if it fails to improve its
financial position.
Cash Flow Indicator Ratio
1.5

0.5

0
Mar-22 Mar-21 Mar-20 Mar-19 Mar-18

Operating Cash flow/sales ratio

Free Cash flow/Operating cash ratio
Dividend Payout ratio

Investment Valuation Ratio -An Investment Valuation Ratio or also call the
Assessment Ratio is the ratio of Investments use to top rate stocks from a
company.
Investment Valuation Ratio
25
20
15
10
5
0
Mar-22 Mar-21 Mar-20 Mar-19 Mar-18

Price Earning Ratio (PE) Price/Sales Ratio (P/S)