A Comparative Study of Working Capital Management of Infosys and Tata Consultancy Services Ltd.

Abstract

Working capital management is a very important element to measure the short-term solvency position o f a firm and for profitability. Without its proper management, no corporate can run their business smoothly. The purpose of this study is to investigate the impact of working capital management on liquidity, profitability and element of risk on the Infosys and TCS Company. To achieve these objectives, data has been collected from secondary sources and for getting results various kinds of statistical tools are used like ratio, average, Spearman’s coefficient of correlation etc. The results reveal that there is a positive correlation between liquidity, profitability and risk. This study will help both the companies in management of their working capital and improving their short-term solvency position.