ISSN (Online): 2455-3662

EPRA International Journal of Multidisciplinary Research (IJMR) - Peer Reviewed Journal

Volume: 7 | Issue: 7 | July 2021|| Journal DOI: 10.36713/epra2013 || SJIF Impact Factor 2021: 8.047|| ISI Value: 1.188

A STUDY ON FINANCIAL PERFORMANCE OF

INFOSYS LTD

1
Mr.P. Kanagaraj, 2Ms. R. Anusha
1
Assistant Professor, Department of Commerce with Professional Accounting,
Dr. N.G.P. Arts and Science College, Coimbatore
2
Student : III B COM PA, Department of Commerce with Professional Accounting,
Dr. N.G.P. Arts and Science College, Coimbatore

ABSTRACT
Financial performance plays an important role in determining the financial strengths and weakness of a company
relative to that of the other companies in the same industry. The study used 6years of Infosys Ltd secondary data and
main objective is to find the financial performance of the industry to determine the future growth of the business. The
various tools like Current ratio, Return on Assets ratio, Total Assets turnover ratio and other performance ratio were
used for the study. The suggestions reveal that the company should try to decrease their expenses and maintain their
profitability level. Finally, the study reveals that the profitability position of the company is more during the study period
and it is satisfactory.
KEYWOEDS: Financial Analysis, Profitability, Growth rate

1. INTRODUCTION 2. STATEMENT OF THE PROBLEM

Financial performance helps investors, A financial analysis reveals strength and
creditors, stakeholders, and the shareholders of the weakness of the company by properly establishing
business enterprise to judge the company’s health the relationship between the items of balance sheet
and efficiency so that accordingly they can make and profit and loss account. The efficient
their appropriate investment decisions. Financial performance of the firm depends on the well planning
performance plays an important role in determining of the capital structure, investment and distribution.
the financial strengths and weakness of a company Since finances the life line and essential driving force
relative to that of the other companies in the same of an enterprise. This study is conducted to evaluate
industry .Financial analysis is the process of the financial performance of Infosys technologies and
identifying the financial strengths and weaknesses of to know the company’s position and performance.
the firm by properly establishing relationships
between the various items of the balance sheet and 3. OBJECTIVE OF THE STUDY
the statement of profit and loss. \  To study the financial position of Infosys
Ltd over a period of 5 year.
 The aim of the study is to analyze position
of the company.
 To determine the future growth of business.

4. RESEARCH METHODOLOGY
Source of Data Secondary Data
Period of Study 2014-2015to 2019-2020
Framework of analysis Financial statements
Tools and Techniques Ratio analysis

2021 EPRA IJMR | www.eprajournals.com | Journal DOI URL: https://doi.org/10.36713/epra2013

572
 ISSN (Online): 2455-3662
EPRA International Journal of Multidisciplinary Research (IJMR) - Peer Reviewed Journal
Volume: 7 | Issue: 7 | July 2021|| Journal DOI: 10.36713/epra2013 || SJIF Impact Factor 2021: 8.047|| ISI Value: 1.188

5. STATISTICAL TOOLS  The net profit during the year 2014-2015

The following statistical tools were applied to was 25.71% and it was highest during the
analyse the statistical data collected for the year 2017-2018was 26.08%and lowest in
calculation of financial performance analysis. the year 2019-2020 was 19.66%. The
Ratio analysis company should take necessary steps to earn
 Profitability Ratios more profit.
 Liquidity Ratios  Return on capital employed during the year
 Solvency Ratios 2014-2015 was 36.83%and it declines to
 Activity Turnover Ratios 29.76%during 2016-2017.return on capital
employed fluctuates to 34.54%during 2019-
2020.
6. REVIEW OF LITERATURE
 The Expense ratio during the year 2014-
R. Divya Bharathi and N. Ramya
2015 was 70.46% during the next five
(2020), the analysis of the financial performance of
continuous years it has slightly increases
Indian Oil Corporation limited is to determine the
and reached to 74.65% during 2016-2020.
firm’s liquidity and profitability position by using
 The return on asset was maximum in the
tools like various ratios used here to measure the
year 2017-2018 was 21.29% and the
financial performance of the company. In order to
minimum in the year 2019-2020 was
compete with global economic scenario and to
19.17%. The highest return on asset was
sustain its place in petroleum industry, it need to
found in 2017-2018.
monitor its financial performance continually and to
 Proprietary ratio was higher during the year
take financial decisions rationally.
2016 -2017 which was 0.85 and it was
Dr. Mrs. Vijayalakshmi, J.
lower during 2019-2020 was 0.76.
Nandhini, P. V. Nivashini and G. Pavithra (2019),
 Total asset turnover ratio during 2014-2015
this study is mainly done to analyze the financial
was 76.52 and it declines to 74.21 during
performance of Ashok Leyland Limited for the
2016-2017 and it slightly increases and
period of 2014 – 2018. It is based on the secondary
reached to 97.53 during 2020. It shows that
data collected from the annual report of the company.
the assets have been utilized properly.
The researchers conclude that the performance of
Ashok Leyland in the study period has been
excellent. 8. SUGGESTIONS
Dr. K. Kumar and V. Sheeba  Though the company’s sale is continuously
Mary (2018), this study is based on the Financial rising but the net profit is not so much good
Performance analysis of TVS Motor Company so the management should take some initiate
Limited this study analysing the data with the help of steps to decrease its expenses.
selected tools and based on the secondary data. The  By making efficient employment of their
necessary data were obtained from published annual available resources the Infosys Ltd can
report of the company. They concluded that the retain their profitability position.
company may maintain the ideal ratio of current asset  Efficient use of fixed assets has enabled the
and current liabilities. The company maintain the company to observe an increased profit.
performance and further improve the efficient level  The company can try to control the
and the suggestions from this study may be expenditure to maintain their financial
considered for the effective and efficient financial position.
performance of TVS Motor Company limited.
9. CONCLUSION
7. FINDINGS The analysis of the company was undertaken
 The firm’s Current ratio was higher during with the help of ratios, which are important tools of
2016-2017 with the ratio of 4.04 and it financial analysis. After the study of financial
decreased with the ratio of 2.87 during performance of Infosys Ltd from various financial
2019-2020. Current ratio of 2:1 is aspects like liquidity, profitability, solvency and
satisfactory and the current ratio is satisfied. activity ratios it can be clear that profitability position
 The liquid ratio is higher than the standard of the company is more or less depends upon the
ratio of 1:1. The liquid ratio is highest better utilization of resources. This study reveals the
during the year 2016-2017 with the ratio of findings and recommendation which would be useful
4.04 and it has decline to 2.87 during 2019- for the development and improvement to the
2020. This shows that the liquid ratio has company.
satisfied.

2021 EPRA IJMR | www.eprajournals.com | Journal DOI URL: https://doi.org/10.36713/epra2013

573
 ISSN (Online): 2455-3662
EPRA International Journal of Multidisciplinary Research (IJMR) - Peer Reviewed Journal
Volume: 7 | Issue: 7 | July 2021|| Journal DOI: 10.36713/epra2013 || SJIF Impact Factor 2021: 8.047|| ISI Value: 1.188

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2021 EPRA IJMR | www.eprajournals.com | Journal DOI URL: https://doi.org/10.36713/epra2013

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