THE FMCG FACE OFF: COMPARING PROFITABILITY AND LIQUIDITY OF INIDA’S LEADING COMPANIES

Abstract

This study examines the profitability and liquidity dynamics of five significant Indian FMCG companies: Britannia Industries, Nestle India, Varun Beverages, ITC, and Hindustan Unilever Ltd. It tests for variances in financial performance using a one-way ANOVA. Quick Ratio, Current Ratio, Net Profit Ratio, Gross Profit Ratio, and Return on Capital Employed (ROCE) are used for the analysis of profitability and liquidity. Since the results demonstrated statistically significant variations in the current ratio and profitability indicators among the selected businesses, the null hypothesis for these variables is rejected. However, there was no appreciable change in the quick ratio. The findings show that short-term liquidity management (aside from inventory) is largely the same across organisations, despite differences in working capital management, pricing strategies, and operational efficiency.