WORKING CAPITAL ANALYSIS OF INFOSYS LIMITED

Abstract

Working capital is considered life line of any business; it is one of the factors that determine strength of financial position of any company. On the basis of availability of working capital, management determines or takes decision whether there is need for loan to fund the operations or they can transfer the money from working to investment as there is enough working capital available for operations. They can transfer the excess to earn higher returns. The aim of this study is to check the working capital of Infosys limited and published financials of last 5 years has been used to check the same. First working capital requirement is checked for Inventory (all types of material i.e. Raw Material, WIP and Finished), Debtors Conversion period and payable Conversion period. After checking the values for all, net operating cycle is period which is Gross operating cycle minus Payable conversion period is checked; this value determines availability of working capital in company.