International Journal For Multidisciplinary Research

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A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

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Unravelling the Key Drivers of Return on Equity: A Comparative Analysis of Infosys and TCS

Author(s) PRAFUL PATEL, SHARDA GANGWAR
Country India
Abstract The quest for higher returns on equity (ROE) has been an enduring concern for investors and stakeholders in the ever-evolving landscape of the global IT industry. Among the major players in this domain, Infosys and Tata Consultancy Services (TCS) stand out as two prominent IT giants that have consistently attracted significant attention from analysts and investors alike. This study presents a comprehensive comparative analysis of Infosys and TCS, with the primary objective of understanding and unravelling the key drivers behind their respective returns on equity. Using quantitative methodologies, this research delves into the financial and operational aspects of both companies. The information spanning throughout the years are examined to capture patterns and trends in the ROE of Infosys and TCS, aiming to recognize all the factors that contribute to the disparities in their respective ROE performance. This analysis explores profitability metrics, capital structure, asset utilization, and growth prospects, to decipher the underlying reasons for the differences in ROE between the two companies. The independent samples t-test will be employed for testing of the null hypothesis and to compare the means of the ROE for TCS and Infosys. A significance level of α = 0.05 will be used to determine statistical significance. The data for the study will be obtained from the annually published reports of Tata Consultancy Services and Infosys.
Keywords Return on Equity, Comparative Analysis, Financial Performance, IT Industry, Profitability Metrics, Capital Structure, Asset Utilization.
Field Sociology > Banking / Finance
Published In Volume 6, Issue 2, March-April 2024
Published On 2024-03-23
Cite This Unravelling the Key Drivers of Return on Equity: A Comparative Analysis of Infosys and TCS - PRAFUL PATEL, SHARDA GANGWAR - IJFMR Volume 6, Issue 2, March-April 2024. DOI 10.36948/ijfmr.2024.v06i02.15313
DOI https://doi.org/10.36948/ijfmr.2024.v06i02.15313
Short DOI https://doi.org/gtn3zw

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