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LIQUIDITY AND PROFITABILITY ANALYSIS OF THE SELECTED IT COMPANIES OF INDIA

Anjali Patel,Jaydeep Ramanuj

2024 · DOI: 10.62737/mt2g3a52
0 Citations

TLDR

The liquidity ratio shows that TCS outperformed Infosys, as does the profitability ratio, while regression analysis results shows that there is no connection between the liquidity ratio and the profitability ratio.

Abstract

For any organisation ratios are extremely useful tools for understanding financial statements and making decisions. For sustainability and long-term future growth, short and long-term success are critical to every company. As IT companies are becoming the major player in not only in one county but all over world. The study's major goal is to have better understand of the relationship between the liquidity ratio and profitability ratio for two selected Indian IT companies: TCS (Tata Consultancy Services) and Infosys. For the study data is collected from the selected companies' annual reports for the duration of 10-year period, from March 2014 to March 2023. For statistical analysis purpose statistical methods, arithmetic mean and regression analysis were used. The liquidity ratio shows that TCS outperformed Infosys, as does the profitability ratio. Regression analysis results shows that there is no connection between the liquidity ratio and the profitability ratio.