Financial Ratio Analysis of Selected IT Compa...

Financial Ratio Analysis of Selected IT Companies in India

Author Name : Mr. P Praveen, Dr. E Muthukumar

DOI: https://doi.org/10.56025/IJARESM.2025.130225976

ABSTRACT Since IT sector contribute tremendously to the GDP of the country, it is inevitable to scrutinize, how these enterprises resuscitate, thrive, and boost their operations. The progression of Sonata Software Ltd, Accenture, IBM India Private Limited, Capgemini&Redington India was investigated for the period 2020-2024 in view of fact that they exhibit significant market capitalization. Spotting one of the top IT giants in this industry is aided by inspecting their key performance indicators. In order to assess business undertaking as a whole, ratio analysis is used together with statistical tools like one-way ANOVA and CAGR. It was discovered that IT companies were not adversely affected by economic fluctuations, and it appears that these businesses have been flourishing over the past few years. Overall, Wipro's performance with respect to generatingnet profit, capital employed and payout ratio over the long run is brilliant. In terms of Valuation ratio, Accentureis the pioneer. With reference to earnings per share, return on invested capital and debt-to-equity ratio, Accenture is the standout player. Although all businesses continue to operate at the identical level in terms of short-term liquidity ratios, IBM India Private Limited takes the lead due to its steady performance over the years. Despite the fact that IBM India Private Limited and Redington Indiahave high market cap, Accenture earns the top spot by performing exceptionally well over the past 5 years showing rising trend in multiple analysis