• Rekha Pal
• Dr. R.K. Patel

India's IT sector has been a substantial earner of foreign exchange through software exports and IT services. Companies engage in outsourcing, consulting, and software development services for clients worldwide, contributing significantly to India's export revenue. Liquidity and profitability are two critical aspects of a firm's financial health, and they play distinct roles in determining the overall performance and sustainability of a business. The main objective of this paper is to analyze impact of liquidity on profitability of selected IT Companies which are TCS, Infosys, HCL, Wipro and Tech Mahindra, during 2019 to 2023. This study uses regression analysis to test 3 indicators of liquidity ratio (current ratio, liquid ratio, and cash to current liability ratio) and 4 indicators of profitability ratio (net profit ratio, return on net worth, return on capital employed and EPS). It has been proved through analysis that liquidity has positive relationship with profitability and has considerable impact on the profitability of selected IT Companies in India.

IT Company, Liquidity and Profitability, Current Ratio, Liquid Ratio, Net Profit , Return on Net worth, Return on Capital Employed, EPS and Multiple Regression

"IMPACT OF LIQUIDITY ON PROFITABILITY OF SELECTED IT COMPANIES IN INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.11, Issue 1, page no.f470-f477, January-2024, Available :http://www.jetir.org/papers/JETIR2401555.pdf

"IMPACT OF LIQUIDITY ON PROFITABILITY OF SELECTED IT COMPANIES IN INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.11, Issue 1, page no. ppf470-f477, January-2024, Available at : http://www.jetir.org/papers/JETIR2401555.pdf