Cash @ Infosys: Is It Really Adding Value?
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Code : FCF0016
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Region : Netherlands, Europe
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Cash @ Infosys You know Kapil, Abhay added, seven friends started Infosys Technologies Limited on July 2, 1981 with Rs. 10,000, from a small apartment in Pune as Infosys Consultants Private Limited. However, in last 28 years, it grew tremendously and became India's second largest IT company with a total revenue of Rs. 1,66,920 million at the end of FY08. In FY08, it generated more than Rs. 16 billion cash from operating activities... Is Infosys Carrying Too Much Cash? According to Eric Wright (Wright), "Look at the various metrics of cash levels in a given industry" in order to find out which companies are carrying too much cash. He further adds that, if a company tends to carry more cash than its peers, it deserves scrutiny... Poor Returns: Result of Excess Cash Kapil opined that, "Infosys is the one of the most admired company. It tries to give always best possible returns to the shareholders." Gaurav replied, "Truth is some thing else, returns are washed out by liquidity. First proof is poor Assets Turnover Ratio (ATR). Infosys has lowest ATR among the top three industry players between March 2007 and March 2008... |
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