A Study on Working Capital Strategies of Indian ITes Industry

Shroff, Sumita, (2018), A STUDY ON WORKING CAPITAL STRATEGIES OF INDIAN ITes INDUSTRY, Indian Accounting Review, 22 (2), pp. 55-75

21 Pages Posted: 10 Jun 2020

See all articles by Sumita J Shroff

Sumita J Shroff

Institute of Commerce, Nirma University

Date Written: December 31, 2018

Abstract

Working capital strategies are amongst the significant ones for every business enterprise. In this context, the current study examined the working capital strategy in terms of current asset structure, current liability structure, working capital policy comprising current asset investment, financing, inventory policy, and credit policy of the Indian ITes industry over a period of 15 years. The analysis revealed that the asset structure of ITes industry is liquid with a higher proportion of current assets. Receivables comprised the major component in the current asset structure and Trade Credit dominated the current liability structure. The industry pursued an aggressive working capital financing strategy.

Keywords: Working Capital Strategy, Working Capital Policy, ITes Industry, Net Trade Cycle, Liquidity, Current Liability Structure.

JEL Classification: G31, G32

Suggested Citation

Shroff, Sumita J, A Study on Working Capital Strategies of Indian ITes Industry (December 31, 2018). Shroff, Sumita, (2018), A STUDY ON WORKING CAPITAL STRATEGIES OF INDIAN ITes INDUSTRY, Indian Accounting Review, 22 (2), pp. 55-75, Available at SSRN: https://ssrn.com/abstract=3601706

Sumita J Shroff (Contact Author)

Institute of Commerce, Nirma University ( email )

Ahmedabad, IN 382481
India

HOME PAGE: http://https://commerce.nirmauni.ac.in/author/sumita/

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