A COMPARATIVE STUDY OF FINANCIAL LIQUIDITY AND SOLVENCY ANALYSIS OF SELECTED INDIAN INFORMATION TECHNOLOGY COMPANIES IN INDIA

The Indian IT sector has been vital to India's progress during the past ten decades. Financial Liquidity and Solvency Analysis offer ways to assess a company's capacity, stability, and profitability using its financial statements. In this research paper, the financial Liquidity and Solvency of selected Indian IT companies during 11 years (2011-12 to 2021-22) are analysed and examined. A linear link between Liquidity and Solvency is established. With the aid of numerous accounting ratios and statistical tools like Mean, SD, CV & CAGR, an effort is made in this to do financial Liquidity and Solvency analysis that demonstrates variations in the profitability of selected IT Companies. According to the data, Infosys and Wipro had the best performances among the businesses that were chosen for the 2011-12-to-2021-22-time frame. In terms of the current ratio, Infosys performs well, whereas Wipro excels in terms of Debt Equity Ratio, Interest Coverage Ratio, Proprietary Ratio, and financial leverage ratio. HCL and TCS, on the other hand, move up to the third and fourth positions in terms of performance. HCL comes in second in terms of performance for both the current ratio and debt-equity ratio. Regarding performance in terms of Financial Liquidity and Solvency, Infosys is ranked first and TCS second Position.

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Keywords: Information Technology, Financial Strength, Financial Ratios, Liquidity, Solvency Analysis, CAGR, CV.


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