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2036537437

IMPACT OF WORKING CAPITAL IN FIRMS PROFITABILITY

An empirical study on impact of working capital management in firms profitabilityAn investigation in Infosys technologies Ltd Prasada M K Cyryx College Prasada.cyryx@gmail.com

Abstract Working capital management plays a very important role in profitability of Infosys technology. This study is an attempt to analyses the impact of working capital management efficiency on firms profitability in Infosys technologies ltd. The study is conducted on the basis of profitability and working capital ratios from 2001 to 2011. The research is conducted by analyzing current ratio, cash turnover ratio, quick ratio, net profit margin, debtor turnover ratio and return on investment. The researcher used secondary data for conducting this research. The researcher used SPSS software for applying statistical tools to ensure the reliability of the results obtained. Some of the major tools are correlation, ANOVA, rotated component matrix and leverage ratios. This study could be helpful for research scholars and the corporate world in the modern business scenario. Key words: WCM,CR,QR,NPM,ROI.

Introduction: Working capital management is one of the crucial and important part in financial management. Working capital management is a process of managing the company assets to meet day to day operational requirements. Working capital is having significant role in managing finance in business.