Comparative Financial Analysis Of Fmcg Companies

Abstract

In today's world, the FMCG industry is regarded as one of the most significant areas of concern. The majority of financial statement evaluations concentrate on companies that are either large contributors to economic figures or operate in a highly competitive business environment. The purpose of this study is to compare the financial performance of HUL and ITC, two Indian FMCG firms, from 2017 to 2021. The financial performance of chosen FMCG firms was measured using various factors such as liquidity ratios, profitability ratios, leverage ratios, turnover ratios, and capital market ratios also analyse by the DuPont equation. The current ratio for HUL is the highest, indicating that the company has good short-term financial strength. HUL has a higher return on assets and shareholder equity than the competition, although it is depreciating in 2021. In comparison to HUL, ITC delivered greater earnings per share to their shareholders' investment in 2021. However, HUL's profitability was significantly higher than ITC's from 2017 to 2020, while ITC outperformed HUL in 2021