Subject category:
Finance, Accounting and Control
Published by:
IBS Case Development Center
Length: 17 pages
Data source: Generalised experience
Topics:
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
Abstract
This case study 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 utilisation 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 analyse the advantages and disadvantages of keeping huge amounts of assets in cash. It also provides an in depth discussion on the actual value added by the liquid assets of Infosys and its alternative uses. The case will help students: 1. To understand the economic value added (EVA) by the liquid assets of Infosys; 2. To understand the advantages and disadvantages of keeping huge amounts of cash; 3. To understand how shareholder value can be enhanced through proper utilisation of idle cash. The case is meant for MBA/MS level students as part of a corporate finance / business strategy curriculum.
Location:
Industry:
Size:
Medium
Other setting(s):
2004-2009
Subject category:
Finance, Accounting and Control
Published by:
IBS Case Development Center
Length: 7 pages
Data source: Generalised experience
About
Abstract
This case study 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 utilisation 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 analyse the advantages and disadvantages of keeping huge amounts of assets in cash. It also provides an in depth discussion on the actual value added by the liquid assets of Infosys and its alternative uses. The case will help students: 1. To understand the economic value added (EVA) by the liquid assets of Infosys; 2. To understand the advantages and disadvantages of keeping huge amounts of cash; 3. To understand how shareholder value can be enhanced through proper utilisation of idle cash. The case is meant for MBA/MS level students as part of a corporate finance / business strategy curriculum.
Settings
Location:
Industry:
Size:
Medium
Other setting(s):
2004-2009
Related
Subject category:
Finance, Accounting and Control
Published by:
IBS Case Development Center
Length: 7 pages
Data source: Generalised experience