PERFORMANCE EVALUATION OF LEADING FMCG FIRMSs
Abstract
Performance of a company is evaluated with respect to its use of assets, shareholder equity and liability, revenue and expenses. Financial ratio analysis plays a significant role in evaluating the performance of a Company and comparison with peer group. A ratio is defined as “the indicated quotient of two mathematical expressions” and “the relationship between two or more things”. In financial analysis, a ratio is used as a benchmark for evaluation the financial position and performance of a firm. The absolute accounting figures reported in the financial statements do not provide a meaningful understanding of the performance and financial position of a firm. An accounting figure conveys meaning when it is related to some other relevant information. In this paper, an attempt has been made to analyse the performance of 5 leading Indian FMCG companies in terms of various Financial Ratios and ANOVA. Profitability in long run contributes to sustained growth of the company. Therefore the Companies must focus on productivity and optimal resources utilization. The evaluation depicts that ITC Limited position is better in comparison to other FMCG Firms.

Authors
Sri Ayan Chakraborty
Nopany Institute of Management Studies, India

Keywords
Indian FMCG Sector, Gross Profit Margin, Operating Profit Margin, Net Profit Margin, Return on Equity, Return on Capital Employed, Dividend Per Share
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Published By :
ICTACT
Published In :
ICTACT Journal on Management Studies
( Volume: 3 , Issue: 3 , Pages: 587 - 596 )
Date of Publication :
August 2017
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110
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