Cash @ Infosys: Is It Really Adding Value?

Code : FCF0016

Year :
2011

Industry : Information Technology

Region : Netherlands, Europe

Teaching Note:Not Available

Structured Assignment :Not Available

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Abstract: The case study 'Cash @ Infosys: Is It Really Adding Value?' developed in the context of Indian Information Technology (IT) companies helps the learners to understand how the share holders value can be enhanced by proper unitization of idle cash.

The case study follows the discussion of IT experts at Max Research regarding the consequences of maintaining huge cash levels by India’s leading IT company - Infosys.

The case study further helps to analyze the advantages and disadvantages of keeping huge amount of assets in cash. It also provided an in depth discussion on the actual value added by the liquid assets of Infosys and its alternative uses.

Pedagogical Objectives:

  • Understand the economic value added (EVA) by the liquid assets of Infosys
  • Understand the advantages and disadvantages of keeping huge cash
  • Understand how share holder value can be enhanced through proper utilization of idle cash.


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    Keywords : Cash management; Rising cash balance at Infosys; Infosys; Cash and bank balance; Cash to net sales; Cash to total assets; Cash to net working capital; Days of Operating Expenditures Held In Cash (DOEHIC); Assets turnover ratio; Cash as percentage of assets and revenue; Return on Equity (ROE); Return on Capital Employed (ROCE); Economic Value Added (EVA); Cash balance of top Indian IT companies

    Contents :
    » Cash @ Infosys
    » Is Infosys Carrying Too Much Cash?
    » Poor Returns: Result of Excess Cash


    Case Introduction >>


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