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The causes of profitability: a panel study of Indian IT and consulting sector

Author

Listed:
  • Rohit Bansal
  • Sanjay Kumar Kar
  • Saroj Kumar Mishra

Abstract

The paper uses several profit methods to examine the factors of profitability for the Indian IT and consulting sector. This reading aims to detect the association between the activity ratio or turnover ratio and the profitability of the Indian IT and consulting sector over the past seven years, from April 2012 to March 2018. The data were then analysed with a descriptive research technique of panel data regression and verified with Hausman's measurement, a widely used technique for selecting the panel effect. Working capital turnover was statistically significant against the profitability of the Indian IT and consulting sector. However, assets turnover and debtor turnover ratio were statistically insignificant with the profit margin. This research will support the company's internal management, auditors, policymakers, financial executives, and investors in making investment decisions.

Suggested Citation

  • Rohit Bansal & Sanjay Kumar Kar & Saroj Kumar Mishra, 2022. "The causes of profitability: a panel study of Indian IT and consulting sector," International Journal of Accounting, Auditing and Performance Evaluation, Inderscience Enterprises Ltd, vol. 18(2), pages 163-183.
    • Handle: RePEc:ids:ijaape:v:18:y:2022:i:2:p:163-183
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