IMPACT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY: A STUDY OF SELECTED IT COMPANIES IN INDIA
DOI:
https://doi.org/10.5281/zenodo.15622181Keywords:
Working Capital, Profitability, IT Companies, Infosys Limited, Tata Consultancy Services Limited, Financial PerformanceAbstract
This research study delves into the nuanced relationship between working capital and profitability, specifically focusing on Infosys Limited and Tata Consultancy Services Limited. The strategic importance of working capital in the dynamic landscape of the Indian IT sector cannot be overstated, serving as a critical enabler for operational efficiency, timely creditor payments, and adaptability to evolving client demands. The research objectives encompass a meticulous analysis of working capital components and their correlation with overall profitability, seeking to uncover strategic insights for future financial decision-making. The sample size, comprising industry leaders Infosys and TCS, enhances the study's relevance, representing entities with significant market influence. Spanning the latest five fiscal years from 2018-19 to 2022-23, the study ensures a comprehensive understanding of the financial dynamics, working capital trends, and long-term patterns, contributing to the evolving narrative around effective financial management in the digital era.
References
I. Al-Najjar, O., & Al-Najjar, I. (2013). The impact of working capital management on the profitability of Jordanian industrial companies. International Journal of Business and Management, 8(8), 95-106.
II. Chen, Y., Wu, Y., & Lin, T. (2015). The mediating effect of financial flexibility on the relationship between working capital management and firm performance. International Journal of Managerial Finance, 11(2), 136-157.
III. Cheng, Y., Zhang, H., & Zhang, F. (2021). Working capital management efficiency and firm performance: Evidence from Czech firms. Sustainability, 13(13), 7441.
IV. Khan, R., & Ahmad, N. (2018). Working capital management and its impact on profitability of selected FMCG companies in India. Management Science & Business, 8(3), 12-21.
V. Kumar, K., Chandra, P., & Sharma, T. (2017). Inventory management and its impact on profitability of Indian trading companies. Indian Journal of Finance, 12(8), 28-42.
VI. Nwabunke, P., Obi-Okoye, C., & Okoye, I. (2019). Working capital management practices and profitability of manufacturing companies in Nigeria. International Journal of Economics and Finance, 11(4), 154-167.
VII. Singh, D., & Yadav, R. (2017). Impact of working capital management on profitability of Indian SMEs: A comparative study of service and manufacturing sectors. International Journal of Economic Research, 8(2), 37-45.
VIII. Zhang, X., Wu, Y., & Li, R. (2019). Exploring the optimal working capital levels for different industries: Evidence from China. Finance Research Letters, 32, 101041.
Additional Files
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 International Educational Applied Scientific Research Journal
This work is licensed under a Creative Commons Attribution 4.0 International License.
