Published Online:January 2025
Product Name:The IUP Journal of Management Research
Product Type:Article
Product Code:IJMR030125
DOI:10.71329/IUPJMR/2025.24.1.50-69
Author Name:Ruby Mittal and Netra Pal Singh
Availability:YES
Subject/Domain:Management
Download Format:PDF
Pages:50-69
The paper presents a comparative analysis of the liquidity management of five prominent Indian software companies: Infosys, Tech Mahindra, Wipro, HCL, and TCS. The study used secondary data from 2011 to 2020. Financial ratios and Motaal’s Ultimate Rank Test were employed to assess and compare the liquidity positions of the selected software companies. The findings revealed a significant correlation between the working capital and the profitability of the firms. According to the Motaal test, Infosys’ liquidity position was the best among the five selected companies, demonstrating superior financial health. Infosys’ liquidity ratios, including current ratio, quick ratio, and working capital to current assets, showed the highest growth compared to those of other companies, positioning Infosys as the top performer in terms of liquidity management. Overall, while all five companies exhibited strong liquidity position, Infosys stood out with the most favorable financial ratios during the study period.
A firm’s value, profitability, and risk are all significantly affected by its financial liquidity management (Smith, 1980). The liquidity of a commercial firm is critical to its ability to operate. An enterprise has to make sure that it maintains sufficient liquidity to cover its urgent requirements.