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AN EMPIRICAL STUDY ON THE IMPACT OF FINANCIAL MANAGEMENT PRACTICES ON PROFITABILITY AT TATA CONSULTANCY SERVICES

AUTHORS:
K. Sathish
Mentor
Uddamari Naveena
Affiliation
Department of Master of Business Administration, CMR Institute of Technology, Medchal, India
DOI: 10.55041/ijsmt.v2i6.172
CC BY 4.0 License:
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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Abstract
This study analyzes the impact of financial management practices on the profitability of Tata Consultancy Services (TCS) from FY2020 to FY2025. Using financial ratio analysis, correlation, and regression techniques, the research examines the relationship between capital structure, asset management, liquidity, and profitability indicators such as ROE, ROI, and Net Profit Margin. The findings show that TCS achieved strong revenue and profit growth while maintaining a very low debt level. The Debt-Equity Ratio had little effect on profitability, whereas the Current Ratio and Asset Turnover Ratio showed a strong positive relationship with performance. The study concludes that efficient asset utilization, strong liquidity management, and financial discipline are the key factors driving TCS's profitability and long-term success.
Keywords
Capital Structure Financial Ratios Profitability Return on Equity
Article Information
PUBLICATION DETAILS
Review Type:
Double-Blind Peer Review
License:
CC BY-NC 4.0
Volume/Issue:
Volume 02, Issue 6
Review Rounds:
2
Article Type:
Research Article
Publication Date:
Jun 22 2026
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Sathish, K. (2026). An Empirical Study on the Impact of Financial Management Practices on Profitability At Tata Consultancy Services. International Journal of Science, Strategic Management and Technology, 02(6). https://doi.org/10.55041/ijsmt.v2i6.172

Sathish, K.. "An Empirical Study on the Impact of Financial Management Practices on Profitability At Tata Consultancy Services." International Journal of Science, Strategic Management and Technology, vol. 02, no. 6, 2026, pp. . doi:https://doi.org/10.55041/ijsmt.v2i6.172.

Sathish, K.. "An Empirical Study on the Impact of Financial Management Practices on Profitability At Tata Consultancy Services." International Journal of Science, Strategic Management and Technology 02, no. 6 (2026). https://doi.org/https://doi.org/10.55041/ijsmt.v2i6.172.

References

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  15. Sharma, S., & Krishnamurthy, G. (2020). Profitability as a primary internal determinant of leverage configurations in high-tech environments. Journal of Business Research India, 34(1), 45–60.

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Ethics and Compliance
✓ All ethical standards met
This article has undergone plagiarism screening and double-blind peer review. Editorial policies have been followed. Authors retain copyright under CC BY-NC 4.0 license. The research complies with ethical standards and institutional guidelines.
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