A STUDY OF WORKING CAPITAL AND LIQUIDITY MANAGEMENT IN SELECTED IT SECTOR COMPANIES
Abstract
Purpose: The paper is an attempt to appraise working capital and liquidity management of the selected IT companies, Infosys Ltd. and Wipro Ltd. resorting meticulous statistical tools. With glowing global competition in the market, crowning achievement has been key mission to management. Moreover, docility of IT industry has assumed primeval essence in a developing country like India due to its major-domos towards the growth of economy. IT companies, therefore, mundanely explore means to redo the biz to ameliorate performance. This paper epitomizes a study of short-term financial performance of the selected giant IT companies in India from diverse perspectives for melioration of potency in the industry.
Method: Secondary data collection strategy accessed through Internet and academic databases viz. literature reviews, website, books, journals, annual reports, etc. from 2017-2018 to 2021-2022. Statistical techniques like mean, Motaal’s Comprehensive Test, Spearman’s Rank Correlation, “t-test” etc. have been employed.
Results: The paper embosoms that the selected companies have sufficient working capital and have met copiously payment of high liquidity commitments with premier in financial performance. The study developed on idiolect of disparate indices reveals that the selected companies matter-of-factly eye simpatico healthy financial triumph apropos working capital and liquidity management in the years under reference. Liquidity and profitability are inversely related to each other in both companies.
Implications: The paper provides important spring of dexterity and is cogent to managers, stakeholders and groundwork in elevating their knowledge mattering working capital and liquidity position of IT industry in India to meet their own pursuits. Management necessitates appraisal to assay its cogency to flower economic ventures and also to percolate poetic mediation to embellish scalability of corporate. Stakeholders can exert the mechanisms to assess impact against other establishments or connive for venture in the company.
