BT-India's Best CFO'S

The BT500, which ranks companies based on their average market capitalisation, was considered as the base set to kick off the quantitative part of the exercise of selecting India’s best CFOs.

Additional Information

The companies were segregated into large ones (those with sales of over Rs 2,000 crore for 2008-09) and mid-sized ones (those with net sales of less than Rs 2,000 crore). Two-year financials (for 2007-08 and 2008-09) of these companies were analysed across three crucial categories: Wealth creation (or creation of shareholder value), leverage management and working capital management. Under wealth creation, parameters like market value to book value, return on equity and return on capital employed were considered. For leverage management, we looked at the companies’ net debt, total debt/total net worth and total debt/earnings before interest, tax, depreciation and amortisation. And the working capital cycle was considered for liquidity management. Based on the numbers, some 60-odd companies were selected for the next phase of evaluation, across the 12 different award categories.