A Study on the Effect of Working Capital on the Profitability of Infosys

The fixed and the current assets play a vital role in the success of any company. Managing the working capital is mandatory because, it has a huge significance on profitability and liquidity of the business concern. The increase in working capital helps in improving its liquidity. Thus, a company needs to have a correct balance between the liquidity position and the profits of the company. The various components for measuring the working capital management include the receivable days, Inventory turnover ratio, Payable days, Cash conversion cycle, Current ratio and Quick ratio on the Net operating profitability position of the Indian companies. The various factors like fixed assets on total assets, the Debt ratio and the size of the firm have also been used for measuring of the working capital management.