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ii.
iii.
iv.
Hypotheses
Ho = There is no relationship between working capital, liquidity & profitability of the company
H1 = There is a relationship between working capital, liquidity & profitability of the company
Methodology of the Study
The Study is based on a secondary data collected through the audited & published annual
reports of the company and website portal moneycontrol.com & covers the study period of 5
years from 2011 to 2015. The study consist of top two IT companies like TCS and WIPRO
selected on the basis on Net sales and availability of information during the study period. The
analyses are based on statistical tools like Mean, Standard Deviations, Coefficient of Variation
and Ratio Analysis. The relationship between the working capital, liquidity & profitability of
the companies are verified using correlation.
Data Analysis, Interpretation and Findings
Table -01 Working capital & liquidity position of TCS Company & Wipro Company
Year
TCS Company
Wipro Company
WC
CR
QR
WC
CR
QR
2011
4418.89
1.72
1.72
13717.60
2.17
2.10
2012
7700.31
1.87
1.87
12260.20
1.76
1.74
2013
13831.73
2.43
2.43
17688.60
2.19
2.17
2014
22569.11
2.84
2.84
22490.20
2.30
2.27
2015
23966.51
2.46
2.45
22490.20
2.30
2.27
Mean
14497.31
2.26
2.26
17729.36
2.14
2.11
Growth
19547.62
0.74
0.74
8772.60
0.13
0.17
442.36
42.91
42.94
63.95
5.84
7.90
SD
8703.97
0.46
0.46
4778.57
0.22
0.22
CV
60.04
20.34
20.35
26.95
10.32
10.33
Growth %
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TCS Company
Wipro Company
OPR
NPR
ROA
ROCE
OPR
NPR
ROA
ROCE
2011
29.93
25.85
29.06
44.45
21.9
18.41
14.19
22.44
2012
29.3
28.24
32.03
53.63
19.07
14.78
12.13
22.04
2013
29.54
26.4
29.72
48.07
20.86
17
13.88
26.72
2014
33.29
28.56
32.07
53.39
23.5
19.06
16.15
29.47
2015
28.57
26.17
30.53
52.77
22.32
19.88
15.34
26.85
Mean
50.46
21.53
Growth
-1.36
0.32
1.47
8.32
0.42
Growth %
-4.54
1.24
5.06
18.72
SD
1.84
1.26
1.35
4.06
1.669
CV
6.10
4.65
4.41
8.04
7.752
1.15
4.41
CR
QR
OPR
NPR
ROA
WC
CR
0.9061
QR
0.9061 1.0000
OPR
0.2937 0.5494
0.5494
NPR
0.1893 0.3372
0.3374
0.6252
ROA
0.3734 0.3882
0.3885
0.4422 0.9406
ROCE
0.6100 0.5049
0.5051
ROCE
1
1
1
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CR
QR
OPR
NPR
ROA
WC
CR
0.8142
QR
0.8529
0.996
OPR
0.7879
0.9099
0.8937
NPR
0.7838
0.9297
0.9100
0.9212
ROA
0.8905
0.9228
0.9228
0.9818
0.9214
ROCE
0.9296
0.7506
0.7281
0.7281
0.6055
0.8253
ROCE
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