This paper is regarding analysis of financial performance of Infosys Limited.Financial Statements are those statements which deliver information about profitability, efficiency, performance and financial position of the concern. Financial statements analysis is a powerful contrivance for a variety of users of financial statements. Different users have different objectives in wisdom about the financial circumstances of the concern. Financial statements deliver information to investors, debtors, creditors, stakeholder and public about the financial position, financial condition, efficiency and performance of the business. It is study about accounting ratios among various items included in balance sheet.

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A Study on Financial Performance of Infosys
Ltd using Ratio Analysis
Kubir Singh
Assistant Professor in Commerce
Guru Nanak College, Budhlada
Abstract
This paper is regarding analysis of financial performance of Infosys Limited.Financial
Statements are those statements which deliver information about profitability, efficiency,
performance and financial position of the concern. Financial statements analysis is a powerful
contrivance for a variety of users of financial statements. Different users have different
objectives in wisdom about the financial circumstances of the concern. Financial statements
deliver information to investors, debtors, creditors, stakeholder and public about the financial
position, financial condition, efficiency and performance of the business. It is study about
accounting ratios among various items included in balance sheet. The financial statements
analysis is a process of evaluating the relationship between component parts of financial
statement to obtain a better understanding of a firm’s position and performance. It includes profit
& loss account or income statement, balance sheet, fund flow statement, cash flow statement,
trend analysis and ratio analysis. Secondary data is used from published annual report of the
company for time period 2016-17 to 2020-21. Through this paper researcher want to analyze the
financial performance of the Infosys Limited.
Key Words: Accounting Ratio, financial position, liquidity position and financial performance,
Infosys ltd.
I Introduction
The financial statements analysis is a process of assessing the relationship between component
parts of financial statement to obtain a better concentrating of a firm’s position and performance.
It includes profit & loss account or income statement, balance sheet, fund flow statement, cash
flow statement, trend analysis and ratio analysis. Financial statement analysis has two key
methods first horizontal and vertical analysis and second method is ratio analysis. Ratio simply
means highlights the quantities relationship stated in mathematical term between two accounting
figures which have meaningful relation with each other. There are many ratios which reflect the
concern liquidity, profitability, solvency and turnover position. Financial Statement analysis
involves the identification of trends, tastes and proportion analysis. It is a method of reviewing
and analyzing company’s accounting reports. It is through the progression of financial analysis
that the key performance pointers, such as, liquidity, solvency and profitability. Financial

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Statements are those statements which provide information about profitability, efficiency and
financial position of the concern.
Profile of Infosys Company
Infosys Limited is an Indian multinational information technology company that
delivers business consulting, information technology and expand services. The company was
founded in 2 July 1981 (Pune) and is headquartered in Bangalore, Karnataka, India.Infosys is the
second-largest Indian IT company after Tata Consultancy Services by 2020 revenue figures and
the 602nd largest public company in the world according to Forbes Global 2000 ranking.
The credit rating of the company is CRISIL AAA / Stable / CRISIL A1+ (rating by CRISIL).
Company traded in NSE, BSE, BSE Constituent and NSE Nifty.
Its Revenue in 2021 is Rs. 1,02,823 Crore, Operating income 26,823 crore, Net Income 19,423
Crore, Total Assets 1,08,489 Crore, Total Equity 74,250 Crore and 2,59,619 employees working
in Infosys Limited.
II Literature Review
Dr. S. Vijayalakshmi.et.al. (2017), in the article titled, “A study on Financial Performance
Analysis of Bharti Airtel Limited”, took a period of 5 years from 2011-2016 for the financial
assessment of the company selected. The financial tools employed to measure the financial
position was ratio analysis. Under ratio analysis short term and long term ratios were used to see
the liquidity, profitability and stability level of the company.
J. Pavithra..et.al. (2017) in paper titled, “A study on the analysis of the Financial Performance
with Reference to Jeppiar Cements Pvt. Ltd. The period of the study was taken for 5 years from
2009-2013. Comparative financial statements, ratio and trend analysis was employed to study the
financial position over the years. It was found that the debtor’s ratio had an increasing trend
which is not considered a good sign for the company and concluded overall profitability position
to be good.
Dr P.R Brinda Kalyani, a paper titled, “A study on the financial performance of Infosys
Limited” took a period of 5 years from 2016 to 2020. It was found that Market value of the firm
were higher to cover the debts of firm. Pattern of the firm remains almost same but there were
technological changes every year. The 5 years trend value depicts the company’s development
and the financial changes of the firm.
III Objectives
• To study the financial performance of Infosys Ltd.
• To examine the solvency and liquidity position of the company

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IV Research Methodology
❖ Sample Selection: For the purpose of the study Infosys Limited has been selected
❖ Period of Study: The study is conducted for a period of five financial years i.e. from 2017 to
2021.
❖ Data Collection: The relevant data are collected from secondary resources. Data has been
collected for five years from the various sources:
• Published Annual Reports of the Infosys Limited for the financial year 2017 to 2021.
• Websites of Infosys Limited
• Other related websites like:
• http://profit.ndtv.com/stock/state-bank-of-india_sbin/financials-historical-cash-flow
• Dion Global Solutions Limited.
V Data Analysis
Current Ratio
Current ratio is calculated by dividing current assets by current liabilities:
Current assets include cash and those assets that can be converted into cash within a year, such as
marketable securities, debtors, inventories, Short-term loans and advances. All the obligations
maturing within a year are included in current liabilities.
Current Ratio = Current Assets / Current Liabilities
Current liabilities include creditors, bills payable, accrued expenses, short term bank loan,
income tax liability and long-term debt maturing in the current year.
Significance
• It indicates the availability of current assets in rupees for every one rupee of current liability.
A ratio of greater than one means that the firm has more current assets than current claims
against them. In India, the conventional rule is to have a ratio of 1.33(internationally it is 2).
• The current ratio represents the margin of safety for the creditors. The higher the current
ratio, the greater the margin of safety; the larger the amount of current assets in relation to
current liabilities, the more the firm’s ability to meet its current obligations.
Table- 1
Year Current Assets Current Liabilities Current Ratio
2016-17 47,682 11,786 4.045647
2017-18 44,090 11,662 3.780655

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2018-19 46,223 15,430 2.995658
2019-20 43,820 15,220 2.879106
2020-21 48,282 17,622 2.739871
Working Capital Ratio
The difference between current assets and current liabilities excluding short term bank borrowing
is called net working capital (NWC). Net Working Capital is sometimes used as a measure of a
firm’s liquidity.
Net Working Capital=Current Assets-Current Liabilities
Net Working Capital Ratio= Net Working Capital / Net Assets
Table-2
Year Current Assets
Current
Liabilities
Working
Capital Total Assets
Net Working
Capital
Ratio
2016-17 47,682 11,786 35,896 79,885 0.45
2017-18 44,090 11,662 32,428 75,877 0.43
2018-19 46,223 15,430 30,793 78,930 0.39
2019-20 43,820 15,220 28,600 81,041 0.35
2020-21 48,282 17,622 30,660 93,939 0.33
Acid Ratio Test (Liquid/Quick Ratio)
This ratio establishes the relationship between quick or liquid assets and current liabilities.
0.00
1.00
2.00
3.00
4.00
5.00
2016-17 2017-18 2018-19 2019-20 2020-21
Current Ratio
Current Ratio

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Quick Ratio =Liquid Assets / Current Liabilities
Liquid Assets= Current Assets-Inventory-Prepaid Exp.
An asset is liquid if it can be converted into cash immediately without a loss of value. e.g. Cash,
Debtors, Bills receivable and marketable securities. Inventories are considered to be less liquid
as it requires time for realizing into cash, their value also has tendency to fluctuate.
Significance
Generally a quick ratio of 1:1 is considered to represent a satisfactory current financial condition.
This test is more significant as compare to current ratio to fulfil the firm’s obligations.
Table-3
Year Current Assets
Current
Liabilities Inventory Liquid Ratio
2016-17 47,682 11,786 0 4.05
2017-18 44,090 11,662 0 3.78
2018-19 46,223 15,430 0 2.99
2019-20 43,820 15,220 0 2.87
2020-21 48,282 17,622 0 2.73
NetWorth Ratio / Proprietary Ratio
This Ratio signifies the relationship between Net Worth and Total Assets.
NetWorth Ratio / Proprietary Ratio= Net Worth / Total Assets
0.00
1.00
2.00
3.00
4.00
5.00
2016-17 2017-18 2018-19 2019-20 2020-21
liquid Ratio
liquid Ratio

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Net Worth is the value of all assets minus the total of all liabilities. Net worth provides the
picture of an entity’s current financial position.
Table-4
0 Total Assets Total Liabilities Net Worth
Net Worth
Ratio (%)
2016-17 79,885 11,868.00 68017 85.14
2017-18 75,877 12,375.00 63502 83.69
2018-19 78,930 16,219.00 62711 79.45
2019-20 81,041 18,807.00 62234 76.79
2020-21 93,939 22,408.00 71531 76.15
Debtor Turnover Ratio
This ratio is calculated by dividing Net credit sales by debtors. This ratio is used to measure how
effective a company is in outspreading credit as well as collecting debts.
Debtor Turnover Ratio= Net Sales / Debtors
Table-5
Year Sales Debtors Debtors Turnover Ratio
2016-17 68,484 10960 6.24
2017-18 70,522 12151 5.8
2018-19 82,675 13370 6.18
2019-20 90,791 15459 5.87
2020-21 100,472 16394 6.12
70.00
75.00
80.00
85.00
90.00
2016-17 2017-18 2018-19 2019-20 2020-21
Net Worth Ratio
Net Worth Ratio

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Net Profit Ratio
It’s a relationship between net profit and sales. It is the best way to measure the overall
performance of a company.
Net Profit Ratio= Net Profit / Net Sales
Table-6
Year Sales Net Profit Net profit Ratio (%)
2016-17 68,484 14383 21
2017-18 70,522 16100 22.83
2018-19 82,675 15410 18.64
2019-20 90,791 16639 18.33
2020-21 100,472 19423 19.33
5.4
5.6
5.8
6
6.2
6.4
2016-17 2017-18 2018-19 2019-20 2020-21
Debtors Turnover Ratio
Debtors Turnover Ratio
0
5
10
15
20
25
2016-17 2017-18 2018-19 2019-20 2020-21
Net profit Ratio
Net profit Ratio

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VI Interpretation
❖ From Table-1, it is observed that the current Ratio of the company is higher in 2016-17
(4.05) and lower in 2020-21 (2.73).
❖ From Table-2, it is observed that the calculated value of Net Working Capital Ratio of the
company is higher 2016-17 (.45) and lower in 2020-21 (.33).
❖ From Table-3, calculated value of LiquidRatio of the company is higher in 2016-17 (4.05)
and lower in 2020-21 (2.73).
❖ Table-4, calculated value of the Net Worth Ratio of the Company is higher in 2016-
17(85.14%) and lower in 2020-21(76.15%).
❖ Table-5, Debtor Turnover Ratio of the Company is higher in 2016-17(6.24 times) and lowers
in 2017-18 (5.8 times).
❖ Table-6, Net Profit of the Company is higher in 2017-18(22.83%) and Lower in 2019-20
(18.33%).
VII Conclusion
On the basis of the study the performance of the Infosys Company is comparatively reduced. It is
study about accounting ratios among various items included in balance sheet. A single ratio in
itself does not convey any sense unless it is interpreted and conclusion is drawn from it regarding
the financial position of the firm as to whether it is strong, average and good. The financial
statements analysis is a technique of measuring the relationship between component parts of
financial statement to obtain a better understanding of a firm’s overall position and performance.
On the behalf of the ratio it is concluded that Infosys company liquidity position reduced, profit
of the company is also fluctuating.
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special reference to non performing assets’, WutanHuatanJisuanJishu, ISSN no 1001-1749,
Vol no XVI issue XI pp 585-591.

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5. Singh,Kulbir and Dr Manjit singhSaggi(2017), ‘Financial Statement Analysis: A
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002
A Study on Financial Performance of Infosys Ltd using Ratio Analysis
BALANCE SHEET OF
INFOSYS (in Rs. Cr.)
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17
12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS

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Equity Share Capital 2,130.00 2,129.00 2,178.00 1,092.00 1,148.00
TOTAL SHARE CAPITAL 2,130.00 2,129.00 2,178.00 1,092.00 1,148.00
Reserves and Surplus 69,029.00 59,808.00 60,533.00 62,410.00 66,869.00
TOTAL RESERVES AND
SURPLUS
69,029.00 59,808.00 60,533.00 62,410.00 66,869.00
TOTAL SHAREHOLDERS FUNDS 71,531.00 62,234.00 62,711.00 63,502.00 68,017.00
NON-CURRENT LIABILITIES
Long Term Borrowings 0 0 0 0 0
Deferred Tax Liabilities [Net] 511 556 541 505 0
Other Long Term Liabilities 4,275.00 3,031.00 248 208 82
Long Term Provisions 0 0 0 0 0
TOTAL NON-CURRENT
LIABILITIES
4,786.00 3,587.00 789 713 82
CURRENT LIABILITIES
Short Term Borrowings 0 0 0 0 0
Trade Payables 1,562.00 1,529.00 1,604.00 738 269
Other Current Liabilities 15,399.00 13,185.00 13,321.00 10,488.00 11,167.00
Short Term Provisions 661 506 505 436 350
TOTAL CURRENT LIABILITIES 17,622.00 15,220.00 15,430.00 11,662.00 11,786.00
TOTAL CAPITAL AND
LIABILITIES
93,939.00 81,041.00 78,930.00 75,877.00 79,885.00
ASSETS
NON-CURRENT ASSETS
Tangible Assets 14,365.00 13,897.00 10,394.00 9,027.00 8,605.00
Intangible Assets 234 77 103 130 0
Capital Work-In-Progress 906 945 1,212.00 1,442.00 1,247.00
Other Assets 0 0 0 0 0
FIXED ASSETS 15,505.00 14,919.00 11,709.00 10,599.00 9,852.00
Non-Current Investments 22,118.00 13,916.00 12,062.00 11,993.00 15,334.00
Deferred Tax Assets [Net] 955 1,429.00 1,114.00 1,128.00 346
Long Term Loans And Advances 30 298 16 19 5
Other Non-Current Assets 7,049.00 6,659.00 7,806.00 8,048.00 6,666.00
TOTAL NON-CURRENT ASSETS 45,657.00 37,221.00 32,707.00 31,787.00 32,203.00
CURRENT ASSETS
Current Investments 2,037.00 4,006.00 6,077.00 5,906.00 9,643.00

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Inventories 0 0 0 0 0
Trade Receivables 16,394.00 15,459.00 13,370.00 12,151.00 10,960.00
Cash And Cash Equivalents 17,612.00 13,562.00 15,551.00 16,770.00 19,153.00
Short Term Loans And Advances 229 307 1,048.00 393 310
OtherCurrentAssets 12,010.00 10,486.00 10,177.00 8,870.00 7,616.00
TOTAL CURRENT ASSETS 48,282.00 43,820.00 46,223.00 44,090.00 47,682.00
TOTAL ASSETS 93,939.00 81,041.00 78,930.00 75,877.00 79,885.00
Sources: Dion Global Solutions Limited.
A Study on Financial Performance of Infosys Ltd using Ratio Analysis
Sources: Dion Global Solutions Limited.
Annual Mar-21 Mar-20 Mar-19 Mar-18 Mar-17
Sales 100,472 90,791 82,675 70,522 68,484
Other Income 2,201 2,803 2,882 3,193 3,080
Total Income 102,673 93,594 85,557 73,715 71,564
Total
Expenditure
75,850 71,417 64,516 53,374 51,583
EBIT 26,823 22,177 21,041 20,341 19,981
Interest 195 170 0 0 0
Tax 7,205 5,368 5,631 4,241 5,598
Net Profit 19,423 16,639 15,410 16,100 14,383