88 TRK Project

A STUDY ON
FINANCIAL PERFORMANCE OF SELECTED FMCG

COMPANIES IN INDIA
A Project Report Submitted to

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY ANANTAPUR
In partial fulfillment of the requirements
For the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
By
T. REDDI KUMAR
Regd.No.20691E00J8
Under the guidance and supervision of

Dr.N. GANGISETTY
M. Com., M.B.A., Ph.D.,
Professor
DEPARTMENT OF MANAGEMENT STUDIES
DEPARTMENT OF MANAGEMENT STUDIES

MADANAPALLE INSTITUTE OF TECHNOLOGY & SCIENCE
(UGC AUTONOMOUS)
(Affiliated to Jawaharlal Nehru Technological University Anantapur, Ananthapuramu)
MADANAPALLE – 517 325

ANNAMAYYA DISTRICT, A.P.
2020-2022
DECLARATION
I declare that this project entitled “A STUDY ON FINANCIAL PERFORMANCE OF
THREE SELCTED FMCG COMPANIES IN INDIA ” is a Bonafide work submitted to
Jawaharlal Nehru Technological University Anantapur, Ananthapuramu under the guidance
and supervision of Dr.N.GANGISETTY, Professor, Department of Management Studies,
Madanapalle Institute of Technology & Science, Madanapalle, for the award of MASTER
OF BUSINESS ADMINISTRATION is a record of original work done by me and that the
project has not previously formed the basis for the award of any degree.
Date: (T. Reddi kumar)

Place: Regd.NO.20691E00J8
CERTIFICATE
Certified that the project report entitled “ A STUDY ON FINANCIAL PERFORMANCE OF
THREE SELECTED FMCG COMPANIES IN INDIA ” submitted by Mr.T.Reddi kumar
(Reg.No.20691E00J8) for the award of Master of Business Administration of Jawaharlal Nehru
Technological University Anantapur, Ananthapuramu, is a record of independent project work
undertaken by her under y supervision and guidance and the project has not been submitted either in
part or whole for the award of any other degree or diploma of any university.
Dr. N.GANGISETTY M.Com. M.B.A., Ph.D. DR. SREMMANT BASU

Professor & Project Guide , Professor & HOD
MBA Department MBA Department
INTERNAL EXAMINER EXTERNALEXAMINER

ACKNOWLEDGEMENT
I would like to thank to all persons who have contributed towards the successful
completion of the project work, I am glad to say working on this project has been both
illuminating and enjoyed for me.
I have deep sense of gratitude to Dr. N. GANGISETTY, M.Com, MBA, Ph.D.,

Professor & Project Guide, Department of Management Studies, for his encouragement,
guidance and valuable suggestions throughout the project.
I take this opportunity to thank Dr. N. VIJAYA BHASKAR CHOUDARY GARU,

Ph.D., Secretary & Correspondent, Dr. C. YUVARAJ, Principal, and Dr. SREMMANT
BASU, Professor & Head, Department of Management Studies, for their continuous support
and encouragement.
My heartfelt Thanks to my parents & Friends for going out of their way to see that I
successfully implementing and completing this project. Their words of wisdom and patience
were much more than a blessing.
I would like to thank all the faculty members of Department of Management Studies,
MITS who directly and indirectly helped me to complete this project.
T. REDDI KUMAR
(Reg No: 20691E00J8)
CONTENTS
Chapter Page
TITTLE
No. No.
DECLARATION
CERTIFICATE
PLAGARISM REPORT
ACKNOWLEDGEMENT
LIST OF TABLES
LIST OF GRAPHS
1 INTRODUCTION
2 INDUSTRY & COMPANY PROFILE
3 RESEARCH METHODOLOGY
4 DATA ANALYSIS & INTERPRETATION
5 SUMMARY OF FINDINGS, SUGGESTIONS & CONCLUSION
BIBLIOGRAPHY
REFERENCES
LIST OF TABLES
Table Page
Title
No. No.
Table showing Current Ratio of Hindustan Unilever Limited for
4.1
the year 2017-18 to 2021-22
Table showing Quick Ratio of Hindustan Unilever Limited for the
4.2
year 2017-18 to 2021-22
Table showing Cash Ratio of Hindustan Unilever Limited for the

4.3
year 2017-18 to 2021-22
Table showing Gross Profit Ratio of Hindustan Unilever Limited
4.4
for year 2017-18 to 2021-22
Table showing Net Profit Ratio of Hindustan Unilever Limited

4.5
for the year 2017-18 to 2021-22
Table showing Operating Profit Ratio of Hindustan Unilever

4.6
Limited for the year 2017-18 to 2021-22
Table showing Return on Capital Employed Ratio of Hindustan

4.7
Unilever Limited for the year 2017-18 to 2021-22
Table showing Earning Per Share Ratio of Hindustan Unilever

4.8
Table showing Debt Ratio of Hindustan Unilever Limited for the

4.9
year 2017-18 to 2021-22
Table showing Debt- Equity Ratio of Hindustan Unilever Limited

4.10
for the year 2017-18 to 2021-22
Table showing Interest Coverage Ratio of Hindustan Unilever

4.11
Table showing Proprietary Ratio of Hindustan Unilever Limited

4.12
for the year 2017-18 to 2021-22
Table showing Working Capital Turnover Ratio of Hindustan

4.13
Table showing Total Assets Turnover Ratio of Hindustan

4.14
Table showing Debtors Turnover Ratio of Hindustan Unilever

4.15
Table showing Inventory Turnover Ratio of Hindustan Unilever
4.16
Table showing Current Ratio of ITC for the year

4.17
2017-18 to 2021-22
Table showing Quick Ratio of ITC for the year 2017-18 to 2021-
4.18
22
4.19 Table showing Cash Ratio of ITC for the year 2017-18 to 2021-22
Table showing Gross Profit Ratio of ITC for the year

4.20
2017-18 to 2021-22
Table showing Net Profit Ratio of ITC for the year

4.21
2017-18 to 2021-22
Table showing Operating Profit Ratio of ITC for the year

4.22
2017-18 to 2021-22
Table showing Return on Capital Employed Ratio of ITC for the

4.23
year 2017-18 to 2021-22
Table showing Earning Per Share Ratio of ITC for the year
4.24
2017-18 to 2021-22
4.25 Table showing Debt Ratio of ITC for the year 2017-18 to 2021-22
Table showing Debt- Equity Ratio of ITC for the year

4.26
2017-18 to 2021-22
Table showing Interest Coverage Ratio of ITC for the year

4.27
2017-18 to 2021-22
Table showing Proprietary Ratio of ITC for the year

4.28
2017-18 to 2021-22
Table showing Working Capital Turnover Ratio of ITC for the

4..29
year 2017-18 to 2021-22
Table showing Total Assets Turnover Ratio of ITC for the year
4.30
2017-18 to 2021-22
Table showing Debtors Turnover Ratio of ITC for the year

4.31
2017-18 to 2021-22
Table showing Inventory Turnover Ratio of ITC for the year
4.32
2017-18 to 2021-22
Table showing Current Ratio of Britannia Industries for the year

4.33
2017- 18 to 2021-22
Table showing Quick Ratio of Britannia Industries For the year

4.34
2017-18 to 2021-22
Table showing Cash Ratio of Britannia Industries for the year

4.35
2017-18 to 2021-22
Table showing Gross Profit Ratio of Britannia Industries for the

4.36
year 2017-18 to 2021-22
Table showing Net Profit Ratio of Britannia Industries for the

4.37
year 2017-18 to 2021-22
Table showing Operating Profit Ratio of Britannia Industries for

4.38
the year 2017-18 to 2021-22
Table showing Return on Capital Employed Ratio of Britannia

4.39
Industries for the year 2017-18 to 2021-22
Table showing Earning Per Share Ratio of Britannia Industries

4.40
for the year 2017-18 to 2021-22
Table showing Debt Ratio of Britannia Industries for the year

4.41
2017-18 to 2021-22
Table showing Debt- Equity Ratio of Britannia Industries for the

4.42
year 2017-18 to 2021-22
Table showing Interest Coversge Ratio of Britannia Industries for

4.43
the year 2017-18 to 2021-22
Table showing Proprietary Ratio of Britannia Industries for the

4.44
year 2017-18 to 2021-22
Table showing Working Capital Turnover Ratio of Britannia

4.45
Table showing Total Assets Turnover Ratio of Britannia

4.46
Table showing Debtors Turnover Ratio of Britannia Industries

4.47
for the year 2017-18 to 2021-22
Table showing Inventory Turnover Ratio of Britannia Industries
4.48
for the year 2017-18 to 2021-22
LIST OF GRAPHS
Table Page
Title
No. No.
Graph showing Current Ratio of Hindustan Unilever Limited for
4.1
the year 2017-18 to 2021-22
Graph showing Quick Ratio of Hindustan Unilever Limited for
4.2
the year 2017-18 to 2021-22
Graph showing Cash Ratio of Hindustan Unilever Limited for the

4.3
year 2017-18 to 2021-22
Graph showing Gross Profit Ratio of Hindustan Unilever Limited
4.4
for year 2017-18 to 2021-22
Graph showing Net Profit Ratio of Hindustan Unilever Limited

4.5
for the year 2017-18 to 2021-22
Graph showing Operating Profit Ratio of Hindustan Unilever

4.6
Graph showing Return on Capital Employed Ratio of Hindustan

4.7
Graph showing Earning Per Share Ratio of Hindustan Unilever

4.8
Graph showing Debt Ratio of Hindustan Unilever Limited for the

4.9
year 2017-18 to 2021-22
Graph showing Debt- Equity Ratio of Hindustan Unilever

4.10
Graph showing Interest Coverage Ratio of Hindustan Unilever

4.11
Graph showing Proprietary Ratio of Hindustan Unilever Limited

4.12
for the year 2017-18 to 2021-22
Graph showing Working Capital Turnover Ratio of Hindustan

4.13
Graph showing Total Assets Turnover Ratio of Hindustan

4.14
Graph showing Debtors Turnover Ratio of Hindustan Unilever

4.15
Graph showing Inventory Turnover Ratio of Hindustan Unilever

4.16
Graph showing Current Ratio of ITC for the year 2017-18 to

4.17
2021-22
Graph showing Quick Ratio of ITC for the year 2017-18 to
4.18
2021-22
Graph showing Cash Rati o of ITC for the year 2017-18 to

4.19
2021-22
Graph showing Gross Profit Ratio of ITC for the year 2017-18 to
4.20
2021-22
Graph showing Net Profit Ratio of ITC for the year 2017-18 to
4.21
2021-22
Graph showing Operating Profit Ratio of ITC for the year 2017-
4.22
18 to 2021-22
Graph showing Return on Capital Employed Ratio of ITC for the

4.23
year 2017-18 to 2021-22
Graph showing Earning Per Share Ratio of ITC for the year
4.24
2017-18 to 2021-22
4.25 Graphshowing Debt Ratio of ITC for the year 2017-18 to 2021-22
Graph showing Debt- Equity Ratio of ITC for the year 2017-18 to
4.26
2021-22
Graph showing Interest Coverage Ratio of ITC for the year

4.27
2017-18 to 2021-22
Graph showing Proprietary Ratio of ITC for the year2017-18 to

4.28
2021-22
Graph showing Working Capital Turnover Ratio of ITC for the

4..29
year 2017-18 to 2021-22
Graph showing Total Assets Turnover Ratio of ITC for the year
4.30
2017-18 to 2021-22
Graph showing Debtors Turnover Ratio of ITC for the year

4.31
2017-18 to 2021-22
Graph showing Inventory Turnover Ratio of ITC for the year

4.32
2017-18 to 2021-22
Graph showing Current Ratio of Britannia Industries for the year

4.33
2017- 18 to 2021-22
Graph showing Quick Ratio of Britannia Industries For the year
4.34
2017-18 to 2021-22
Graph showing Cash Ratio of Britannia Industries for the year

4.35
2017-18 to 2021-22
Graph showing Gross Profit Ratio of Britannia Industries for the

4.36
year 2017-18 to 2021-22
Graph showing Net Profit Ratio of Britannia Industries for the

4.37
year 2017-18 to 2021-22
Graph showing Operating Profit Ratio of Britannia Industries for

4.38
the year 2017-18 to 2021-22
Graph showing Return on Capital Employed Ratio of Britannia

4.39
Graph showing Earning Per Share Ratio of Britannia Industries

4.40
for the year 2017-18 to 2021-22
Graph showing Debt Ratio of Britannia Industries for the year

4.41
2017-18 to 2021-22
Graph showing Debt- Equity Ratio of Britannia Industries for the

4.42
year 2017-18 to 2021-22
Graph showing Interest Coversge Ratio of Britannia Industries

4.43
for the year 2017-18 to 2021-22
Graph showing Proprietary Ratio of Britannia Industries for the

4.44
year 2017-18 to 2021-22
Graph showing Working Capital Turnover Ratio of Britannia

4.45
Graph showing Total Assets Turnover Ratio of Britannia

4.46
Graphshowing Debtors Turnover Ratio of Britannia Industries

4.47
for the year 2017-18 to 2021-22
Graph showing Inventory Turnover Ratio of Britannia Industries

4.48
for the year 2017-18 to 2021-22
ABSTRACT
Financial performance of selected Fast Moving Consumer Goods (FMCG)
companies in India. A Fast Moving Consumer Goods (FMCG) sector is an escalating sector
among all other growing sectors in India. It is the fourth largest sector in India. Changing life
styles growing awareness and easier access are the major drives for the growth of the FMCG
sector. The Fast Moving Consumer Goods sector consists of a huge number of companies
servicing the society by proving various kinds of goods and services which fulfill the growing
needs of the society. The FMCG sector in the last few years has shown more growth in rural
areas as compared to urban areas. It is projected that the FMCG sector will continue to
growing. Among the various companies the mostly rapidly growing selected FMCG
companies like Hindustan Unilever Limited, ITC, Britannia Industries. Have been studied for
getting an idea about their performance. For the period of year 2018 to 2022. The study is
based on the secondary data collected from journals, articals, company websites and annual
reports of the companies etc. The company analysis is calculating the current ratio, quick
ratio, cash ratio, gross profit ratio, net profit ratio, operating profit ratio, return on capital
employed, earning per share, debt to equity ratio, debt ratio, proprietary ratio, interest
coverage ratio, working capital turnover ratio, inventory turnover ratio, assets turnover ratio,
debtors turnover ratio. In these ratios we have to calculating the selcted FMCG companies in
India. The Fast Moving Consumer Goods (FMCG)
companies financial position is satisfactory. The analysis of the company was made using
various tools of financial analysis like financial ratios of the FMCG companies of the
company analysis.
1. INTRODUCTION
1.1 FINANCIAL PERFORMANCE
Financial perfoemance is a subjective measure of how well a firm can use assets from its
primary mode of business and generate revenues.The term is also used as a general measure
of a firms overall financial health over a given period. Analysts and investors use financial
performance to compare similar firms across the same industry or to compare industries or
sectors in aggregate.The financial performance tells investors about the general well being of
a firm.Its a snapshot of its economic health and the job its management is doing. A key
document in reporting corporate financial performance is form 10-k, which all public
companies are required to publish annually.
Financial statement used in evaluating overall financial paerformance include the balance
sheet, the income statement, and the statement of cash flows. Financial performance
indicators are ouantifiable metrics used to measure how well a company is doing. No single
measure should be used to define the financial performance of a firm. There are many
stakeholders in a company, including trade creditors, bondholders, investors, employees, and
management. Each group has an interest in tracking the financial performance of a
company.The financial performance identifies how well a company generates revenues and
manages its assets, liabilities, and the financial interests of its stakeholders and stockholders.
A key document in reporting corporate financial performance, one heavily relied on by

research analysts, is form 10-k. The securities and exchange commission requires all public
companies to file and publish this annual document. Its purpose is to provide stakeholders
with accurate and reliable data and information that provide an overview of the companys
financial health. Independent accounts audit the information in a 10-k, and company
management signs it and other disclosure documents. As a result, the 10k represents the most
comprehensive source of information on financial performance made available to investors
annually. Althrough the terms are sometimes used interchangeably, a comapanys orm 10-k is
not the same as its annual report. Both include information about the company and its
financial performance over the last year. But the annual report is more of a polished
publiction, lavishly illustrated and initiatives the comapany undertakes. The 10-k lacks such
photos and graphics but gnerally goes into more financial details and calculations.
Financial performance matters to investors,who make decisions about whether to buy or
sell a companys stocks and bonds based on this information. But investors arent the only
ones who care about financial performance. Managers use this information to determine
howto allocate ompany resources. Analysts use financial performance data to make forecasts
about future earnings and growth. Lenders use this information to assess whether a company
is credit worthy. Monetary execution is a theoretical extent of how well a firm can use assets
from its fundamenral strategy for business and make earnings.The term is furthermore used
as a general extent of an organizations as a rule monetary prosperity over a given period.
What is Monetary execution.
Monetary execution is a passionate extent of how well a firm can use assets from its
fundamental technique for business and produce earnings.The term is in like manner used as
a general extent of relationships all around monetary prosperity over a given
period.Examiners and monetary benefactors use nonetary execution to break down near firms
across a comparative industry or to check out organizations or regions in total.Monetary
execution illuminates monetary patrons concerning the general thriving of a firm. It’s a
review of its financial prosperity and the work its organization is doing. A critical file in
enumerating corporate monetary execution s sructure 10-k, which all open associations
areexpected to convey every year. Monetary declarations used in surveying overall monetary
execution join the resource report, the compensation clarification, and the statement of cash
streams. Monetary execution pointers are quantifiable estimations used to evaluate how well
an association is getting along. No single mesure should be used to describe the monetary
exhibition of a firm. Recording monetary execution a critical recording announcing corporate
monetary execution, one intensely depended on by research experts, is structure 10-k. The
potections and trade commission requires all open organizations to record and distribute this
yearly achieve.
Its motivation is to give partners exact and solid information and data that give an
outline of the organizations monetary wellbeing. Free book keepers review the data in a 10-k,
and friends the executives sign it and other divulgence reports. Thus, the 10-k addresses the
most complete wellspring of data on monetary execution made ccessible to financial backers
annually. Observing your monetary presentation in like manner makesmore conviction and
confidence in choosi both short and long stretch decisions. This consequently prompts a
superior business and speedier improvement rate. Its similarly allows you to outmaneuver
and outbox competitors who flop in such way.
1.2 IMPORTANCE OF FINANCIAL PERFORMANCE

 A companys financial performance is crucial for the interests of a varied group of
people related to the company.
 For instance, investors, with the help of financial performance, take an insight about
whether the scope of earnings is there or not whether the company will grow andso
on.
 For management, the appraisal gives insight into internal control, future
opportunities, higher returns and so on.
 Trade creditors are interested in getting insight into the liquidity of firms to ensure
less financial risk.
 Bond holders and share holders, interested in te projection of future profitability.
1.3 FINANCIAL PERFORMANCE MEASURES TO MONITOR

The measurements beneath are commonly found in the financial articulations
recorded above and among the mostsignificant for supervisors and other key partners inside
an association to comprehend.
A. Liquidity Ratios
1. Current Ratio
The current ratio is an acceptable measure of the firms short term solvency. Current
assets include cash within a year, such as marketable securities, debtors and inventories.
Prepaid expenses are also included in the current assets as they represent the payments that
will not be made by the firm in the future.
The current ratio is a measure of the firms short term solvency. It indicates the
availability of current assets in rupees for every one rupee of current liabilities. A current
ratio of 2:1 is considered satisfactory. The higher current ratio, the greater the margin of
safety, the large the amount of current assets in relation to current liabilities, the more the
firms ability to meet its obligations. It is a crude and quick measure of the firms liquidit
Current Assets
Current Assets=
Current Liabilities
2. Quick Ratio
Quick Ratio establishes a relationship between quick or liquid assets and current
liabilities. An asset is liquid if it can be converted into cash immediately or reasonable soon
without a loss of value. Cash is the most liquid asset, other assets that are considered to be
relatively liquid asset and included in quick assets are debtors, bills receivables and
marketable securities. Inventories are considered to be less liquid. Inventories normally
require some time for realizing into cash. The quick ratio is found out by dividing quick
assets by current liabilities. Generally a quick ratio of 1:1 is considered adequate.
Quick Assets
Quick Ratio=
Current Liabilities
3. Cash Ratio
Cash is the most liquid asset, a financial analyst may examine Cash Ratio and its
equivalent current liabilities. Cash and Bank balances and short term marketable securities
are the most liquid assets of a firm. Trade investment or marketable securities is equivalent of
cash. Therefore, they may be included in the computation of cash ratio.
If the company carries a small amount of cash, there is nothing to be worried about
the lack of cash it the company has reserves borrowing power. Cash ratio is perhaps the most
stringent measure of liquidity. Cash Ratio is calculated as cash and marketable securities by
current liabilities.
Cash+ Marketable Securities
Cash Ratio=
Current Liabilities
B. Profitability Ratios
1. Gross Profit Ratio
Gross profit ratio establishes the relationship between Gross profit and sales. It
indicates the efficiency of production or trading operation. A high gross profit ratio is a good
management as it implies that cost of production is relatively low.
Gross Profit
Gross Profit Ratio= ×100
Sales
2. Net Profit Ratio

Net profit ratio establishes the relationship between net profit and sales. It is
determined by dividing the net profit (after taxes) by net sales. It indicates the efficiency of
the management in manufacturing, selling, administrative and other activities of the firm.
Profit After Tax

Net Profit Ratio= × 100
Sales
3. Operating Profit Ratio

Operating profit ratio is referred to as the ratio that is used to define a relationship
between the operating profit and the net sales. Operating profit is also known as earnings
before interest and taxes and net sales can also be defined as the revenue that is earned from
the operations. Operating profit ratio is one type of profitability ratio and is therefore
expressed in the form of a percentage.
Operating Profit
Operating Profit Ratio= ×100
Net Sales
4. Return on Capital Employed Ratio

Return on capital employed (ROCE) is a financial ratio that can be used to assess a
companies profitability and capital efficiency. In other words, this ratio can help to
understand how well a company is generating profits from its capital as it is put to use. The
ROCE ratio is one of several profitability ratios financial managers, stakeholders, and
potential investors may use when analyzing a company for investment.
Profits Before Interest ∧Taxes

ROCE= ×100
Capital Employed
5. Earning Per Share Ratio

Earning per share indicates whether the firms earning power on per has increased or
not. Earning per share simply show the profitability of the firm on a per share basis. It does
not reflect how much is paid as dividend and how much is retained in the business. But, a
profitability index, it is valuable and widely used ratio. It also helps in estimating the
companies capacity to pay dividend to its equity shareholders. It is calculated by dividing the
profits after taxes by the total number of equity shares.
Profit After Tax
Earning Per Share Ratio=
Number of Equity Shares
C. Leverage Ratios
1. Debt Ratio
Several debt ratios may be used to analyze the long term solvency of a firm. The firm
may be interested in knowing the proportion of the interest bearing debt in the capital
structure. It may, therefore, compute debt ratio by dividing total debt by capital employed on
net assets. Total debt will include short term and long term borrowings from financial
institutions, debentures and bonds, deferred payment arrangements for buying equipments,
bank borrowings, public deposits and any other interest bearing loan. Capital employed will
include
total debt and net worth.
Total Debt
Debt Ratio=
Total Debt + Net Worth
Total Debt = Secured + Unsecured Loans

Net Worth = Share holders Funds
2. Debt - Equity Ratio

Debt- equity ratio indicates the relationship describing the lenders contribution for
each rupee of the owners contribution iscalled debt equity ratio. Debt-equity ratio is directly
computed by dividing total debt by net worth. Lower debt - equity ratio, higher the degree of
protection. A debt-equity ratio of 2:1 is considered ideal.
Total Debt
Debt− Equity Ratio=
Net Worth
Total Debt = Secured + Unsecured Loans

Net Worth = Share holders Funds
3. Interest Coverage Ratio

The interest coverage ratio or the times- interest - earned is used to test the firms debt
servicing capacity. The interest coverage ratio is computed by dividing earnings before
interest and taxes (EBIT) by interest charges. In this the lender will be interested in finding
out whether the business would earn sufficient profits to pay the interest charges.
EBIT
Interest Coverage Ratio=
Interest
EBIT = Earnings Before Interest and Tax
4. Proprietary Ratio
The total shareholders’s fund is compared with the total tangible assets of the
company. This ratio indicates the general financial strength of concern. It is a test of the
soundness of financial structure of the concern. The ratio is great significance to creditors
since it enables them to find out the proportion of shareholders funds in the total investment
of business.
'
Sharehold e s Funds
Proprietary Ratio=
Total Assets
Shareholder’s Funds = Share Capital + Reserves and Surplus
D. Activity or Efficiency Ratios

1. Working Capital Turnover Ratio
This ratio measures the relationship between working capital and sales. The ratio
shows the number of times the working capital results in sales. Working capital as usual is
the excess of current assets over current liabilities. The following formula is used to measure
the ratio.
Net sales
Working capital turnover ratio=
Working capital
Working Capital = Current Assets – Current Liabilities
2. Total Assets Turnover Ratio

This ratio expresses relationship between the amounts invested in the assets and
resulting in terms of sales. This is calculated by dividing the net sales by total sales. The
higher ratio means better utilization and vice - versa. This ratio shows the firm’s ability in
generating sales from all financial resources committed to total assets.
Net Sales
Total Assets Turnover Ratio=
Total Assets
3. Debtors Turnover Ratio

Debtors turnover ratio indicates the relationship between sales and average debtors. It
is calculated by dividing sales by average debtors. Higher turn over ratio indicated better
performance and lower turn over ratio indicated inefficiency. It includes debtors as well as
the bills receivables.
Net Sales
Debtors Turnover Ratio=
Average Debtors
4. Inventory Turnover Ratio
Inventory turnover ratio indicated the efficiency of firm in producing and selling its
products. It is calculated by dividing the cost of goods sold by average inventory. It measures
how fast the inventory is moving through the firm and generating sales. The Inventory
turnover ratio reflects the efficiency of inventory management.
Cost of Goods Sold
Inventory Turnover Ratio=
Average Inventory
Opening Stock +Closing Stock

Average Inventory=
2
1.4 RATIONAL ANALYSIS

Ratio Analysis is done to dissect the companys financial and pattern of the
organizations outcomes over a time of years where there are for the most part five general
classifications of ratios like liquidity ratios, dissolvability ratios, benefit ratios, effectiveness
ratio, inclusion ratio which demonstrates the organizations performance and different.
Financial ratio analysis helps a business in various manners. The significance and benefits of
financial ratios are given bellow.
 Ratios help in dissecting the performance patterns through a significant stretch of

time.
 They likewise assist a business with constrasting the financial out comes with those
of contenders.
 Ratios helps the administration in dynamic.
 They likewise bring up issue and powerless regions alongside the strength regions.
 Ratios to assist with creating connections between various financial articulation
things.
 Ratios enjoy the benefit of controlling for contrasts in size. For instance two
organizations might be very divergent in estimate however can measure up as far as
beneft, liquidity, and so on, by the utilization of ratios.
1.5 CLIENTS OF FINANCIAL RATIOS

Financial ratio analysis is expected to survey the financial performance and decide the
financial situation of an association through its productivity, liquidity, movement,influence
and other significant pointers. There are numerous gatherings and people with different and
clashing interests however need to think about the business performance or position. In the
accompanying table significant clients of financial articulations with their spaces of interest
are portrayed
1. Bankers and lenders

Use productivity, liquidity and speculation since they need to know the capacity of the
acquiring industry in standard booked revenue installments and reimbursements of chief
advance sum.
2. Investors
Use productivity and venture since they are more keen on benefit performance of business
and wellbeing and security of their speculation and development capability of their
speculation.
3. Government
Use productivity since government may utilize benefit as a reason for tax collection,
awards and endowments.
4 .Employees
Use productivity, liquidity and action since representatives will be worried about
employer stability, reward and continuation of business and pay dealing.
5. Customers
Use liquidity since clients will look for consolation that the business can get by
trmporarily and keep on providing.
6.Suppliers
Use liquidity since providers are more keen on knowing the capacity of the business to
settle its momentary commitments as and when they are expected.
7. Management
Use all ratios since the executives is keen on all angles that is both financial performance
financial state of the business.
1.6 RESTRICTIONS OF FINANCIAL RATIOS
While ratios are vital instruments of financial analysis, they had a few constraints, for
example.
 The firm can make some year end changes to their financial assertions, to work on
their ratios. Then, at that point the ratios wind up being only window dressing.
 Ratios disregard the value level change because of expansio. Numerous ratios are
determined utilizing verifiable expenses, and they disregard the progressions in value
level between the periods. This doesn’t mirror the right financial circumstances.
 Accounting ratios totally overlook the subjective parts of the firm. They just think
about the money related angles.
 There are no standard meanings of the ratios. A few firms might be utilizing various
equations for the ratios. One such model is current Ratio,where a few firms take into
consideration every current responsibility however others disregard bank overdrafts
from current liabilities while ascertaining current ratio and at long last,book keeping
ratios doest resolve any financial issues of the organization. They are a way to end,
not the genuine arrangement.
2. INDUSTRY AND COMPANY ROFILE

2.1 INDUSTRY PROFILE
2.1.1 Fast moving consumer goods (FMCG)
Fast Moving Consumer Goods (FMCG), also know as consumer packaged goods
(CPG) are products that are sold quickly and at a relatively low cost. Examples include non
durable household goods such as packaged foods, beverages, toiletries, candies, cosmetics,
over the counter drugs, dry goods, and other consumables. Fast moving consumer goodshave
a high inventory turnover and are constrasted with specialty items which have lower sales and
higher carrying charges. Many retailers carry only FMCGs, particularly hypermarkets, big
box stores and warehouse club stores. Small convenience stores also stock fast moving
goods. The limited shelf space is filled with higher turnover items.
Quicker buyer merchandise (FMCG) or shopper bundled products are items that are sold
rapidly and for moderately minimal price. Models incorporate non tough products like
bundled food sources, refreshments, toiletries, over the counter medications and numerous
other consumables. Interestingly, strong merchandise or significant apparatuses, for example
kitchen machines are for the most part supplanted over a time of a while. Many quick buyer
merchandise have a time frame of realistic usability, either because of high shopper interest
or in light of the fact that the item falls a part quickly. Some FMCGs, like meat, leafy foods,
dairy items, and heated merchandise, are profoundly transient. Different merchandise, like
pre bundled food varieties,sodas, chocolate,confections, toiletries ,and cleaning items, has
high turnover rates. The deals are in some cases affected by occasions and seasons.
Bundling is basic for FMCGs. The coordinations and dispersion frame works regularly
require auxiliary and tertiary bundeling to augment productivity. The unit pack or essential
bundle is basic for item security and time span of usability and futher more gives data and
deals motivators to buyers. Despite the fact that overall revenue made on FMCG items is
moderately little they are for the most part sold in enormous amounts hence, the aggregate
benefit on such items can be generous. FMCG is an exemplary instance of low edge and high
volume business. The Indian FMCG area is the fourth biggest area in the economy with an
absolute market size of US$ more than 13 billion. This area has developed at a peace of
11% some what recently and is required to proceed with the pattern upwards with a projected
14.5 percent up to 2022.
India has an impressively solid MNC presence, which is supported by a grounded dispersion
network set up, contests among the coordinated and sloppy sections and low operational
expense.
2.1.2 Characteristics of Fast Moving Consumer Goods (FMCG)

Coming up next are the principle attributes of FMCGs
From the buyer’s viewpoint
1. Frequent buy
2. Low association (practically zero exertion to pick the thing)
3 . Low cost
4. Short time span of usability
5. Rapid utilization
From the advertiser’s viewpoint
1. High volumes
2. Low commitment edges
3. Extensive circulation organizations
4. High stock turnover
Government Initiatives
 In the Union Budget 2017-2018, the Government of India has proposed to spend more
on the country side with an intend to two fold the ranchers pay in five years just as the
quit raising in personal duty rate focusing on predominantly the little citizens, center
around reasonable lodging and frame work improvement will give various
development drivers to the buyer market industry.
 The government of India’s choice to permit 100% Foreign Direct Investment (FDI)
in online retail of labour and products through the programmed course has given
clearness on the current organizations working in India.
 With the interest for gifted work developing among Indian enterprises, the public
authority intends to prepare 500 million individuals by 2022 and is likewise
reassuring private players and business people to put resources into the endeavor.
Numerous legislatures, corporate and instructive associations are pursuing giving
preparing and training to make a talented labour force.
 The Government of India has drafted another Consumer protection Bill with unique
accentuation on setting up a broad component to guarantee straight forword, fast,
open, moderate and convenient conveyance of equity to purchasers.
2.1.3 Types of Fast Moving Consumer Goods
Fast Moving Consumer Goods products are usually broken up into different types
depending on the industry they are sold in these include.
1. Food and Beverages
2. Personal Care Products
3. Health Care Products
4. Home Care Products
1. Food and Beverages
Food and beverage products usually fall into the FMCG category due to their short life
span and high turnover rates. Types of food and beverage products that are usually classified
as FMCGs include but are not limited to. Processed food, such as bread, pasta and potato
chips. Ready to eat food, such as packets of nuts or crisps. Beverages, such as bottled water,
coffee cups and cans of soda.
2. Personal Care Products
Personal care products, such as shampoo and toothpaste, can also be classed as FMCGs
because they are needed frequently by most consumers, usually bought at a low cost and not
built to last. These include lotions, hair dyes, lipsticks, cosmetics, deodorants, bath soap,
dental care products, etc.
3. Health Care Products
Health care products are also classed as FMCGs because they are usually highly
demanded, not built to last and very distributed. These include products like plasters,
bandages, syringes, etc.
4. Home Care Products
Products that are used for household purposes also fall into this category because they are
usually standardised, low durability goods that are highly distributed and sold at a usually
low unit price. They include cleaning products, kitchen towels, toilet rolls, bleach, dusters,
etc.
2.2 COMPANY PROFILE

2.2.1 Hindustan Unilever Limited (HUL)
Hindustan Unilever Limited (HUL) is an Indian shopper merchandise organization

settled in Mumbai, India. It is an auxiliary of Uniliver, an English organization. Its items
incorporate food varieties, refreshments, cleaning specialists, individuals consideration items
water purifiers and other quick purchaser products. Hindustan Unilever Limited was
established in 1931 as Hindustan Vanaspati Assembling co, furthemore, following a
consolidation of constituent gatherings in 1956, it was renamed Hindustan Switch Restricted.
starting at 2019 Hindustan Unilever’s portfolio had 35 item markets in 20 classifications. The
organization has 18,000 workers and timed deals 34,619 crores in FY2017-18. In December
at 2018, HUL declared its procurement of Glaxo Smith Klines India’s shopper business for
$3.8 billion in an all value consolidation manage a 1:4.39 proportion. Anyway the
coordination of GSK’s 3,800 workers stayed questionable as HUL finished its consolidation
with Glaxo Smith Kline Buyer Medical care (GSKCH India) in the wake of finishing every
legitimate system.
Hindustan Unilever Limited is the market chief in Indian purchaser items with presence
in more than 20 shopper classes like cleansers, tea, cleansers and shampoos among others
with more than 700 million Indian buyers utilizing its items. Sixteen of HUL’s brands
included in the ACNielsen Brand Value rundown of 100 Most confined in Brands Yearly
Overview (2014), completed by Brand Value, an enhancement of the Financial Occasions.
The Establishment of Intensity, India, has perceived Hindustan Uniliver Restrictors Task
Shakti for ‘Making Shared Worth’ and offered to the organization the Watchman Prize for
2014. It positioned number one on the Forbes rundown of ‘Most Inventive Organizations’
across the globe for 2014 and was positioned number three on fortune Indias rundown of
India’s most appreciated organizations in a rundown accumulated with the assistance of a
world wide administration consultancy Roughage Group. It got an honor from Dum and
Brandstreet Corporate Honors in 2014 and was Customer of the Year at Effie’s 2013- 14. It
additionally got an honor as an ‘Cognizant Entrepreneur of the Year’ at the 2013 Forbes India
Initiative Honors. HUL won 12 honors in general with 4 Golds, 4 Silvers and 4 Bronzes at
the 2013 Begrudges Honors. The organization with its through item range and wide
conveyance network intends to give items satisfying the necessities and requests of the
relative multitude of sections of the general public the nation over. The organization has
consistently centered around inventive item contributions and adjusting to the market
changes, which has assisted it with keeping up its market administration. For fiscal year
ended March 2022, HUL consilidated net profit was up 11.16 percent Rs 8,892 crore. It had
reported a net profit of Rs 7,999 crore in the previous year. Revenue from operations was at
Rs 51,472 crore in 2021- 22. This is 11.24 percent higher than Rs 46,269 crore in the
previous year.
2.2.2 ITC
ITC Restricted is an Indian organization settled in Kolkata, West Bengal ITC has a
broadened presence across ventures such as cigarettes, FMCG inns, bundling, paperboards
and specialty papers and agribusiness. The organization has an aggregate of 13 organizations
in 5 portions. Likewise there are 90 nations where ITC sends out its items. Its items are
accessiblein 6 million retail outlets. ITC was established in 1910 as the Royal Tobacco
Organization of India Restricted, the organization was renamed as the Indian Tobacco
Organization Restricted in 1970 and later to I.T.C. Restricted in 1974. The organization
presently stands renamed to ITC Restricted, where ITC today is at this point not an
abbreviation or an initialised structure.The organization finisged 100 years in 2010 and
starting at 2019-20, had a yearly turnover of US$ 10.74 billion and a market capitalisation
of US$35 billion. It utilizes more than 36,500 individuals at in excess of 60 areas across
India and is essential for the Fores 2000 rundown, Inside a some what limited capacity to
focus time, ITC has assembled 25 mother brands, a large number of which are market
pioneers in their portions.
This lively arrangement of brands addressed a yearly customer spends of over H19,700
crore today. ITC’s elite Indian brands anchor serious and comprehensive worth chains that
make, catch and hold bigger worth inside the country. The organization was changed over in
to a public Restricted Organization on 27 October 1954. The initial move towards
Indianization was taken around the same time with 6% of the Indian shareholding of the
organization. ITC likewise turned into the main Indian organization to introduction to
purchaser research during this time. During the 1960s, innovation was given more spotlight
on setting up cigarette apparatus and channel bar fabricating offices pointed toward
accomplishing independence in cigarette production
Ajit Narain Haskar turned into the organizations first Indian executive in 1969 and this
was pivotal in developing the Indian administration for the organization. As the organizations
possession was dynamically Indianised, under Haskar’s administration, the name of the
organization was changed from “Supreme Tobacco Organization of India Restricted” to
“Indian Tobacco Organization Restricted” in 1970. ITC likewise turned into the first
organization in Quite a while to begin from the 971 Scissor’s Cup. Inventive market crusades
and electronic information preparing were begun during the 1970s. A representative
investment opportunity plot was presented interestingly and a web based interface for the
organization was dispatched.
Indias largest cigarette manufacturer ITC Ltd posted its Q4 FY22 results. The companies
profit after tax was up 11.6% year on year to Rs 4,259 crore in the quarter under review from
Rs 3,816 crore in the year ago period. On a sequential basis, the profit after tax was up 3.4%
Quarter on Quarter to Rs 4,259 crore from Rs 4,118 crore in the previous quarter. The Board
of Directors of the company has recommended a final dividend of Rs 6.25 per ordinary
share. In addition to the above, the Board on 3rd February 2022 declared an Interim Dividend
of Rs 5.25 per ordinary share, which was paid on 4rd March 2022. Together with the said
Interim Dividend, the Total Dividend for the financial year ended 31st March 2022 amounts
to Rs 11.50 per ordinary share.
2.2.3 Britannia Industries Limited
Britannia Industries Limited is an Indian company specialised in food industry, part of
the Wadia group headed by Nusli wadia. Founded in 1892 and headquartered in Kolkata, it is
one of India’s oldest existing companies and best known for its biscuit products. The
company sells its Britannia and Tiger brands of biscuits, breads and dairy products
throughout India and abroad. Beginning with the circumstances of its takeover by the Wadia
Group in the early 1990s, the company has been mired in several controversies connected to
its management. However, it still has a large market share and it is profitable.
The company was established in 1892 by a group of British businessmen with an
investment of Rs295. Initially, biscuits were manufactured in a small house in central kolkata.
Later, the enterprise was acquired by the Gupta brothers, mainly Nalin Chandra Gupta, an
attorney, and operated under the name “V.S. Brothers.” In 1918, C.H. Holmes, an English
businessman based in kolkata, was taken on as a partner and the Britannia Biscuit Company
Limited (BBCO) was launched. The Mumbai factory was set up in 1924 and Peek Freans
UK, acquired a controlling interest in BBCO. Biscuits were in high demand during World
War ll, which gave a boost to the company’s sales. The company name was changed to the
current “Britannia Industries Limited” in 1979. In 1982, the American company Nabisco
Brands, Inc. Acquired the parent pf Peek Freans and became a major foreign
shareholder.
The company’s principal activity is the manufacture and sale of biscuits, bread, rusk,
cakes and dairy products. The company’s factories have an annual capacity of 433000 tonnes.
The brand names of Britannia’s biscuits include VitaMarieGold, Tiger, Nutrichoice, Good
Day, 50 50, Treat, Pure Magic, Milk Bikis, Bourbon, Nice Time and Little Hearts among
others. In 2006, Tiger, the mass market brand, realised $150.75 million in sales, including
exports to the U.S. and Australia. This amounts to 20% of Britannia revenues for that year.
Also Britannia Industries has roped in Bollywood actor Salman Khan to endorse its range of
Tiger brand of biscuits. According to Britannia, Khan will play a role in further enhancing
Tiger’s core values through his association in presenting the brand, its products and
promotional activities. Dairy products contribute close to 10% to Britannia’s revenue. The
company not only markets dairy products to the public but also trades dairy commodities
business-to-business. Its dairy portfolio grew to 47% in 2000-01 and by 30% in 2001-02. Its
main competitors are Nestle India, the National Dairy Development Board (NDDB), and
Amul (GCMMF). Britannia holds an equity stake in Dynamix Dairy and outsources the bulk
of its dairy products from its associate.
On 27 October 2001, Britannia announced a joint venture with Fonterra Co-operative
Group of New Zealand, an integrated dairy company which handles all aspects of the value
chain from procurement of milk to making value- added products such as cheese and
buttermilk. Britannia intends to source most of the products from New Zealand, which they
would market in India. The joint venture will allow technology transfer to Britannia.
Britannia and New Zealand Dairy each hold 49% of the JV, and the remaining 2 percent will
be held by a strategic investor. Britannia has also tentatively announced that its dairy business
would be transferred to the joint venture. However, the authorities approval to the joint
venture obliged the company to start manufacturing facilities of its own. It would not be
allowed to trade, except at the wholesale level, thus pitching it in competition with Danone,
which had recently established its own dairy business.
Between 1998 and 2001, the company’s sales grew at a compound annual rate of 16%
against the market, and operating profits reached 18%. More recently, the company has been
growing at 27% a year, compared to the industries growth rate of 20%. At present, 90% of
Britannia’s annual revenue of Rs 22 billion comes from biscuits. Britannia is one of India’s
100 Most Trusted brands listed in The Brand Trust Report. Britannia has an estimated market
share of 38%. Britannia Consolidated March 2022 Net Sales at Rs 3550.45 crore, up 13.41%
year on year. Reported Consolidated quarterly number for Britannia Industries are Net Sales
at Rs 3550.45 crore in March 2022 up 13.41% from Rs. 3130.75 crore in March 2021.
3. RESEARCH METHODOLOGY
3.1 STATEMENT OF THE PROBLEM
The FMCG industry in India has gained in popularity over the last 3-4 years, mainly
because of changing lifestyles and eating habits of people. The present study focus on
financial performance of selected FMCG companies. The profitability and liquidity
associated with those companies financial performance were measured with relevent
tools.We have many no of studies in this perspective but they are in different periods and
different sectors. The present study is only considering top three FMCG companies based on
their market capitalization.
3.2 NEED FOR THE STUDY
In any of the organization financial performance plays an important role. Under or over
estimation of performance affects the profitability and liquidity of the company financial
position. For Example some Industries operating cycle will be more days, so they need to
improve financial performance and estimation is very difficult. So it is very much needed to
analyze the financial performance in those companies.
3.3 OJECTIVES OF THE STUDY
1. To measure the financial performance of selcted FMCG companies.
2. To compare the financial performance of FMCG companies.
3. To understand the concept of FMCG.
4. To assess the future earnings capacity of the companies.
3.4 SCOPE OF THE STUDY
1. This study is confined to selected FMCG companies in India
2. Total asset turnover values of the companies have been considered to compare the
Performance of the companies.
3.5 DATA COLLECTION

3.5.1 Secondary data
This study is based on secondary data. The data was collected from the websites and
journals. The study required accounting data for analysis. The data is extracted from
companie’s websites. The data is collecting from the different websites like money
control.com and company annual reports.
3.5.2 Tools used for analysis

The following statistical tools have been used to study the performance of selected
FMCG companies. Tools used for the analysis are ratios.
1. Current Ratio
2. Quick Ratio
3. Cash Ratio
4. Gross profit Ratio
5. Net profit Ratio
9. Debt Ratio
10. Debt - equity Ratio
12.Proprietary Ratio
13.Working Capital Turnover Ratio
14.Total Assets Turnover Ratio
15.Debtors Turnover Ratio
16.Inventory Turnover Ratio
3.5.3 Sampling Method
1. The sample for the study is five years of data. Dated from the year 2018 to 2022.
2. To study the performance of 5 years finally best company finding.
3.6 LIMITATIONS OF THE STUDY
This study has its limitations that limit the applicability and validity of study which
limitations are as listed below.
1. The study is purely based on secondary data obtained from the annual reports of the
Companies.
2. The study was limited to only five years financial data.
3. The study was limited to only three selected FMCG companies.
4. In this study used to analyze only limited financial ratios.
5. The study will be it is depending on the companies performance only.
4. DATA ANALYSIS AND INTERPRETATION

A. Liquidity Ratios
1. Current Ratio
Current Assets
Current Ratio=
Current Liabilities
Table No: 4.1

Table Showing Current Ratio of Hindustan Unilever Limited
from the year 2017-18 to 2021-22
Year Current Assets Current Liabilities Current Ratio
2017-18 11139.00 8636.00 1.28
2018-19 11374.00 8353.00 1.36
2019-20 11908.00 9104.00 1.30
2020-21 13640.00 10841.00 1.25
2021-22 14647.00 10944.00 1.33

Graph No: 4.1
Graph Showing Current Ratio of Hindustan Unilever Limited
Current Ratio
1.38
1.36
1.36
1.34 1.33
1.32
Current Ratio
1.3
1.3
1.28
1.28
1.26 1.25
1.24
1.22
1.2
1.18
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
The Standard norm of the current ratio is 2:1. During the period 2018-22 the current
ratio of the company is 1.28, 1.36, 1.30 and 1.25 and 1.33 In the year 2018-19 the current
ratio is increased from 1.36. It shows the better performance of the company in the year
2018-19 than 2021-22.
2. Quick Ratio
Quick Assets
Quick Ratio=
Current Liabilities
Table No: 4.2

Table showing Quick Ratio of Hindustan Unilever Limited
Year Quick Assets Current Liabilities Quick Ratio
2017-18 1405.00 8636.00 1.62
2018-19 898.00 8353.00 1.07

2019-20 1961.00 9104.00 2.15
2020-21 1605.00 10841.00 1.48

2021-22 1663.00 10944.00 1.51 Gra
ph No:
4.2
Graph showing Quick Ratio of Hindustan Unilever Limited
From the year 2017-18 to 2021-22
Quick Ratio
2.5
2.15
2
1.62
1.48 1.51
Quick Ratio
1.5
1.07
1
0.5
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
The Quick ratio is more penetrating test of liquidity than the current ratio. The standard
norm of the quick ratio is 1:1. During the period 2018-2022, the Quick ratio of the company
is 1.62, 1.07, 2.15, and 1.48 and 1.51. In the year 2019-20, the Quick ratio is increased to
2.15.
3. Cash Ratio
Cash Ratio=
Current Liabilities
Table No: 4.3

Table showing Cash Ratio of Hindustan Unilever Limited
Year Cash Current Liabilities Cash Ratio
Marketable
Securities
2017-18 3373.00 8636.00 0.39

2018-19 3688.00 8353.00 0.44
2019-20 5017.00 9104.00 0.55

2020-21 4321.00 10841.00 0.39
2021-22 3618.00 10944.00 0.33 Gra

ph No:
4.3
Graph showing Cash Ratio of Hindustan Unilever Limited
Cash Ratio
0.6 0.55
0.5
0.44
0.39 0.39
Cash Ratio
0.4
0.33
0.3
0.2
0.1
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
In all the above years the Cash Ratio is very low. The standard norm for Cash ratio is
1:2. The company is in keeping sufficient cash, bank balances and marketable securities.
B. Profitable Ratios
Gross Profit
Sales
Table No: 4.4

Table showing Gross Profit Ratio of Hindustan Unilever Limited
Year Gross Profit Sales Gross Profit Ratio Gr
ap 2017-18 35103.00 34525.00 10.16 h
2018-19 38649.00 38224.00 11.11
2019-20 39391.00 38785.00 10.15
2020-21 46671.00 45996.00 14.67
2021-22 51602.00 51193.00 10.07
No: 4.4
Graph showing Gross Profit Ratio of Hindustan Unilever Limited
Gross Profit Ratio

16 14.67
14
12 11.11
Gross Profit Ratio
10.16 10.15 10.07

10
8
6
4
2
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
The ratio indicates the relationship of gross profit on sales. During the period 2018-22,
the gross profits are 10.16, 11.11, 10.15,14.67 and 10.07 In the year 2020-21 the gross profit
ratio is increasing to 14.67. But after that it starts decreasing to 10.07 in the year 2021-22.
2. Net Profit Ratio
Profit After Tax
Sales
Table No: 4.5

Table showing Net Profit Ratio of Hindustan Unilever Limited
Year Net Profit Sales Net Profit Ratio Gr
ap 2017-18 5237.00 34525.00 15.16 h
2018-19 6036.00 38224.00 15.79
2019-20 6738.00 38785.00 17.37
2020-21 7954.00 45996.00 17.29
2021-22 8818.00 51193.00 17.22
No: 4.5
Graph showing Net Profit Ratio of Hindustan Unilever Limited
for the year 2017-18 to 2021-22
Net Profit Ratio

18
17.5 17.37 17.29 17.22
17
Net Profit Ratio
16.5
16 15.79
15.5 15.16
15
14.5
14
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
During the period 2018-22, the Net profit ratio is 17.37. In the year 2019-20,
Hindustan Unilever Limited. Have large amount of profits, but it is decreased to Net profit is
15.16 in the year 2017-18, again it is increased 15.79 in the year of 2018-19.
Operating Profit
Net Sales
Table 4.6
Table showing Operating Profit Ratio of Hindustan Unilever Limited
for the year 2017-18 to 2021-22
Operating
Year Operating Profit Net Sales
Profit Ratio
2017-18 7276.00 34525.00 21.07
2018-19 8637.00 38224.00 22.59
2019-20 9600.00 38785.00 24.75
2020-21 11324.00 45996.00 24.61
2021-22 12503.00 51193.00 24.42
Graph No: 4.6

Graph showing Operating Profit Ratio of Hindustan Unilever Limited
for the year 2017-18 to 2021-22
Operating Profit Ratio

26
25 24.75 24.61 24.42
24
23 22.59
22
21.07
21
20
19
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
Operating Profit Ratio is high in the year 2019-20, 24.75. From the year 2017-18
onwords it was in ascending from but in 2021-22. It was decreased to 24.61 that means
Operating Profit Ratio is increased with respect to net sales in the year 2019-20.
ROCE= ×100
Capital Employed
Table No: 4.7

Table showing Return on Capital Employed Ratio of Hindustan Unilever
Year PBIT Capital Employed ROCE Ratio
2017-18 7783.00 1745.00 44.60 .

2018-19 9074.00 1747.00 51.94
2019-20 10085.00 1691.00 59.63

2020-21 11608.00 2229.00 52.07
2021-22 12893.00 2399.00 53.74

Gra
ph No: 4.7
Graph showing Return on Capital Employed Ratio of Hindustan Unilever
Return on Capital Employed Ratio

70
Return on Capital Employed
59.63
60 53.74
51.94 52.07
50 44.6
40
Ratio
30
20
10
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
Return on Capital Employed Ratio is high in the year 2019-20, 59.63. From the year
from the 2018-22 onwords it was in ascending from but in 2020-21 it was decreased to 52.07
means return on capital employed is increased to profit before interest and taxes in thr year
2019-20.
Profit After Tax
Table No: 4.8

Table showing Earning Per Share Ratio of Hindustan Unilever Limited
for the year 2017-18 to 2021-22
Year Profit After Tax Number of Shares Earning Per
Share Ratio
. 2017-18 5237.00 216.00 24.24
2018-19 6036.00 216.00 27.94
2019-20 6738.00 216.00 31.19

2020-21 7954.00 235.00 33.84
2021-22 8818.00 235.00 37.52
Graph No: 4.8

Graph showing Earning Per Share Ratio of Hindustan Unilever Limited
for the year 2017-18 to 2021-22
Earning Per Share Ratio

40 37.52
35 33.84
31.19
30 27.94
24.24
25
20
15
10
5
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
Earning Per Share is Rs.24.24 in the year 2017-18, and further it increasing to Rs.27.94
in the year 2018-19, again it is increase to Rs.31.19 in the year 2019-20. As The company
shares and Earning Per Share are increasing in parallel as the performance in increasing year
by year.
C. Leverage Ratios
1. Debt Ratio
Total Debt
Debt Ratio=
Table No: 4.9
Table showing Debt Ratio of Hindustan Unilever Limited
for the year 2017-18 to 2021-22
Year Total Debt Capital Employed Debt Ratio
2017-18 17149.00 24224.00 0.70

2018-19 17865.00 25524.00 0.69
2019-20 19602.00 27633.00 0.70

2020-21 68116.00 11555.00 0.58
2021-22 69737.00 118497.00 0.58
Graph No: 4.9

Graph showing Debt Ratio of Hindustan Unilever Limited
for the year 2017-18 to 2021-22
Debt Ratio
0.8
0.7 0.69 0.7
0.7
0.6 0.58 0.58
0.5
Debt Ratio
0.4
0.3
0.2
0.1
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
The Debt ratio gives results is good. The Debt ratio is 0.70 in the year 2017-18, and it is
decreased to 0.69 in the year 2018-19.In the year 2020-21, the debt ratio is decreased to the
0.58.
2. Debt - Equity Ratio
Total Debt
Net Worth
Table No: 4.10

Table showing Debt- Equity Ratio of Hindustan Unilever Limited
for the year 2017-18 to 2021-22
Year Total Debt Net Worth Debt- Equity Ratio

2017-18 17149.00 7075.00 2.42
2018-19 17865.00 7659.00 2.33

2019-20 19602.00 8031.00 2.44
2020-21 68116.00 47434.00 1.43

2021-22 69737.00 48760.00 1.43
Gra
ph No: 4.10
Graph showing Debt- Equity Ratio of Hindustan Unilever Limited
for the year 2017-18 to 2021-22
Debt - Equity Ratio

3
2.5 2.42 2.33 2.44

Debt- Equity Ratio
1.5 1.43 1.43
0.5
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation:
During the period 2018-22, the Debt- Equity Ratio is 2.42, 2.33, 2.44, 1.43 and 1.43. It
is high in the period 2019-20 Debt- Equity Ratio is 2.44. After it is decreased to Rs. 1.43 in
the year 2020-21.
EBIT
Interest
Table No: 4.11

Table Showing Interest Coverage Ratio of Hindustan Unilever Limited
for the year 2017-18 to 2021-22
Year EBIT Interest Interest
Coverage Ratio
2017-18 7783.00 20.00 36.73

2018-19 9074.00 28.00 31.24
2019-20 10085.00 106.00 87.63

2020-21 11608.00 108.00 99.23
2021-22 11773.00 98.00 120.13

Gra
ph No: 4.11
Graph showing Interest Coverage Ratio of Hindustan Unilever Limited
for the year 2017-18 to 2021-22
Interest Coverage Ratio

140
120.13
120
99.23
100 87.63
80
60
40 36.73 31.24
20
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation:
During the period 2018-22, the Interest Coverage Ratios are 36.73, 31.24 .87.63, 99.23
and 120.13. In the year 2019-20, Interest Coverage Ratio is 87.63. In the year 2021-22
Interest Coverage Ratio is high 120.13.
Sharehold e ' s Funds

Proprietary Ratio=
Total Assets
Table No: 4.12

Table showing Proprietary Ratio of Hindustan Unilever Limited
for the year 2017-18 to 2021-22
Year Shareholdr’s Total Assets Proprietary Ratio
Funds
2017-18 7075.00 17149.00 0.41

2018-19 7659.00 17865.00 0.42
2019-20 8031.00 19602.00 0.40

2020-21 47434.00 68116.00 0.69
2021-22 48760.00 69737.00 0.70
Graph No: 4.12

Graph showing Proprietary Ratio of Hindustan Unilever Limited
for the year 2017-18 to 2021-22
Proprietary Ratio
0.8
0.69 0.7
0.7
0.6
Proprietary Ratio
0.5
0.41 0.42 0.4
0.4
0.3
0.2
0.1
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
During the period 2018-22, the Proprietary Ratios are 0.41, 0.42, 0.40, 0.69 and 0.70. In
the year 2021-22, the Proprietary ratio is high 0.70.
Net sales
Working capital
Table No: 4.13

Table showing Working Capital Turnover Ratio of Hindustan Unilever Limited
Year Net Sales Working Working Capital
Capital Turnover Ratio
2017-18 34525.00 2503 13.79

2018-19 38224.00 3021 12.65
2019-20 38785.00 2804 13.83

2020-21 45996.00 2799 16.43
2021-22 51193.00 3703 13.82 Gra

ph No:
4.13
Graph showing Working Capital Turnover Ratio of Hindustan Unilever Limited
for the year 2017-18 to 2021-22
Working Capital Turnover Ratio

Working Capital Turnover Ra -
18 16.43
16
13.79 13.83 13.82
14 12.65
12
10
8
tio
6
4
2
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
Working Capital Turnover Ratio is useful to measure the operating efficiency of
thefirm. Working capital turnover ratio is 13.79 in the year 2017-18. But it decreased to 12.65
in the following year 2018-19 and increased to 13.83.Working capital turnover ratio is high
16.43.
Net Sales
Total Assets
Table No: 4.14

Table showing Total Assets Turnover Ratio of Hindustan Unilever Limited
for the year 2017-18 to 2021-22
Year Net Sales Total Assets Total Assets
Turnover Ratio
2017-18 34525.00 17149.00 2.01
2018-19 38224.00 17865.00 2.13

2019-20 38785.00 19602.00 1.97
2020-21 45996.00 68116.00 0.67

2021-22 51193.00 69737.00 0.73
Gra
ph No: 4.14
Graph showing Total Assets Turnover Ratio of Hindustan Unilever Limited
for the year 2017-18 to 2021-22
Total Assets Turnover Ratio

2.5
2.13
2.01 1.97
2
1.5
1
0.67 0.73
0.5
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
During the period 2018-22, This Ratio is increased from the value 2.16to 2.13. It shows
the effective capacity of the total assets. In 2020-21, total assets turnover is decreased 0.67.
Net Sales
Average Debtors
Table No: 4.15

Table Showing Debtors Turnover Ratio of Hindustan Unilever Limited
for the year 2017-18 to 2021-22
Year Net Sales Average Debtors Debtors
Turnover Ratio
2017-18 34525.00 1147.00 30.10
2018-19 38224.00 1673.00 22.84

2019-20 38785.00 1046.00 37.07
2020-21 45996.00 1648.00 27.91

2021-22 51193.00 1932.00 26.49
Gra
ph No: 4.15
The Graph showing Debtors Turnover Ratio of Hindustan Unilever Limited
for the year 2017-18 to 2021-22
Debtors Turnover Ratio

40 37.07
35
30.1
30 27.91 26.49
25 22.84
20
15
10
5
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
During the period 2018-22, Debtors Turnover Ratios are 30.10, 3 22.84, 37.07, 27.91
and 26.49. Debtors Turnover ratio is high in the year 2019-20, 37.07. But the Debtors
Turnover Ratio is increasing as the number of sundry customers is incresed.
Cost of Goods Sold
Average Inventory
Table No: 4.16

Table showing Inventory Turnover Ratio of Hindustan Unilever Limited
for the year 2017-18 to 2021-22
Year Cost of Average Inventory Turnover
Goods Sold Inventory Ratio
2017-18 12491.00 2359.00 5.29

2018-19 13240.00 2422.00 5.46
2019-20 11572.00 2636.00 4.38

2020-21 14951.00 3383.00 4.41
2021-22 15869.00 3890.00 4.07

Gra
ph No: 4.16
Graph showing Inventory Turnover Ratio of Hindustan Unilever Limited
for the year 2017-18 to 2021-22
Inventory Turnover Ratio

6 5.46
5.29
5
4.38 4.41
4.07
4
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
During the period 2018-22, Inventory Turnover Ratios are 5.29, 5.46, 4.38 4.41 and
4.07.
The Inventory Turnover Ratio is high in the year 2018-19, 5.46. And decreasing the
Inventory Turnover Ration is 4.38. In the year 2019-20. Again increased 4.41. And decreased
4.07.
A.Liquidity Ratios
1. Current Ratio
Current Assets
Current Ratio=
Current Liabilities
Table No: 4.17

Table showing Current Ratio of ITC for the year 2017-18 to 2021-22
Year Current Current Current Ratio

Assets Liabilities
2017-18 24503.00 8856.00 2.76

2018-19 29568.96 9621.56 3.07
2019-20 36506.91 9089.41 4.01

2020-21 31815.42 10174.17 3.12
2021-22 30942.01 11478.09 2.69 Gra

ph
No:4.17
Graph showing Current Ratio of ITCfor the year 2017-18 to 2021-22
Current Ratio
4.5
4.01
4
3.5 3.07 3.12
Current Ratio
3 2.76 2.69
2.5
2
1.5
1
0.5
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
Current Ratio is useful to measure the firm’s short-term solvency.The standard norm of
the current ratio is 2:1. During the period 2018-22 the Current Ratio of the company is 2.76,
3.07, 4.01 3.12 and2.69. In the year 2017-18, the Current Ratio is2.76. In the year 2019-
20.The Current Ratio is high 4.01,in the year 2019-20.
2. Quick Ratio
Quick Assets
Quick Ratio=
Current Liabilities
Table No: 4.18

Table showing Quick Ratio of ITC for the year 2017-18 to 2021-22
Year Quick Assets Current Quick Ratio
Liabilities
2017-18 2406.36 8856.00 0.27
2018-19 2055.20 9621.56 0.21
2019-20 2353.68 9089.41 0.25

2020-21 2203.22 10174.17 0.21
2021-22 3483.12 11478.09 0.30
Graph No: 4.18

Graph showing Quick Ratio of ITC for the year 2017-18 to 2021-22
Quick Ratio
0.35
0.3
0.3 0.27
0.25
0.25
0.21 0.21
Quick Ratio
0.2
0.15
0.1
0.05
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
The Quick Ratio is more penetrating test of liquidity than the current ratio. The standard
norm of the quick ratio is 1:1. During the period 2018-22, the Quick Ratio of the company is
0.27, 0.21, 0.25, 0.21 and 0.33. In the year 2021-22 Quick Ratio is high 0.30.
3. Cash Ratio
Cash Ratio =
Current Liabilities
Table No: 4.19

Table showing Cash Ratio of ITC for the year 2017-18 to 2021-22
Year Cash Marketable Current Cash Ratio

Gr
Securities Liabilities
ap h
2017-18 2594.88 8856.00 0.29
2018-19 3768.73 9621.56 0.39

2019-20 6843.27 9089.41 0.75
2020-21 4001.50 10174.17 0.39

2021-22 3877.94 11478.09 0.33
No: 4.19
Graph showing Cash Ratio of ITC for the year 2017-18 to 2021-22
Cash Ratio
0.8 0.75
0.7
0.6
0.5
Cash Ratio
0.39 0.39
0.4 0.33
0.29
0.3
0.2
0.1
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
In all the above yearsthe Cash Ratio is very low. The standard norm for Cash Ratio is
1:2. The company is in keeping sufficientcash, bank balances and marketable securities.
Gross Profit
Sales
Table No: 4.20

Table showing Gross Profit Ratio of ITC for the year 2017-18 to 2021-22
Gr
Year Gross Profit Sales Gross Profit
ap h
Ratio
2017-18 44721.89 43448.94 10.29
2018-19 50736.50 48352.8 10.49
2019-20 52456.07 49404.05 10.61

2020-21 52531.82 49272.78 10.66
2021-22 67727.31 65204.09 10.38

No: 4.20
Graph showing Gross Profit Ratio of ITC for the year 2017-18 to 2021-22
Gross Profit Ratio

10.7 10.66
10.61
10.6
Gross Profit Ratio
10.49
10.5
10.4 10.38
10.29
10.3
10.2
10.1
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
The Gross Profit Ratio indicates the relationship of gross profits on sales. During the
period 2018-22, gross profits are 10.29, 10.49, 10.61, 10.66 and10.38. Gross Profits are
increasing year by year.The high Gross Profit Ratio is 10.66 in this year 2020-21.The Gross
Profi Ratio decreased 10.38, in the year 2021-22.
2. Net Profit Ratio
Profit After Tax
Sales
Table No: 4.21
Table showing Net Profit Ratio of ITC for the year 2017-18 to 202-22
Year Net Profit Sales Gross Profit Gr

Ratio
ap h
2017-18 11263.62 43448.94 25.92
2018-19 12580.63 48352.8 26.01
2019-20 15298.01 49404.05 30.96

2020-21 13168.11 49272.78 26.72
2021-22 15485.65 65204.96 23.74

No: 4.21
Graph showing Net Profit Ratio of ITC for the year 2017-18 to 2021-22
Net Profit Ratio

35
30.96
30 26.72
25.92 26.01
25 23.74
Net Profit Ratio
20
15
10
5
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
During the period 2018-22, the Net Profit Ratio is high 30.96, in the year 2019-20 ITC.
Have large amounts of profits, but it is decreasedto 26.72, in the year 2020-21. Again it is
decreased 23.74, in the year of 2021-22.
Operating Profit
Net Sales
Table No: 4.22

Table showing Operating Profit Ratio of ITC
for the year 2017-18 to 2021-22
Year Operating Sales Operating Gr
ap Profit Profit Ratio h
2017-18 16482.96 43448.94 37.93
2018-19 18406.36 48352.8 38.06

2019-20 19260.16 49404.05 38.98
2020-21 17002.70 49272.78 34.50

2021-22 20658.41 65204.96 31.68
No: 14.22
Graph showing Operating Profit Ratio of ITC
for the year 2017-18 to 2021-22

45
40 37.93 38.06 38.98
34.5
35 31.68
30
25
20
15
10
5
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
During the period 2018-22, Operating Profit Ratio is Rs. 37.93, 38.06, 38.98 , 34.50 and
31.68. The Operating profit ratio is increasing year by year during 2019-20. The Operating
Profit Ratio is high 38.98 in the year 2019-20. And decreasing the 34.5 in the year 2020-21.

ROCE= ×100
Capital Employed
Table No: 4.23

Table showing Return on Capital Employed Ratio of ITC
for the year 2017-18 to 2021-22
Year PBIT Capital ROCE Ratio
Employed
2017-18 16988.63 51411.2 33.04
2018-19 19138.12 57957.68 33.02
2019-20 20158.46 64034.79 31.48

2020-21 17945.09 59009.86 30.41
2021-22 20722.99 61399.57 33.75
Graph No: 4.23

Graph showing Return on Capital Employed Ratio of ITC
for the year 2017-18 to 2021-22

35
34 33.75
33.04 33.02
33
32 31.48
31 30.41
Ratio
30
29
28
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
The Return on Capital Employed Ratio is 33.04, in the year 2017-18. And it goes on
decreasing in the following years. In 2020-21. The Return on Capital Employed is increasing
33.75, in the year 2021-22.
Profit After Tax

Table No: 4.24

Table showing Earning Per Share Ratio of ITC
for the year 2017-18 to 2021-22
Year Profit After Number of Earning Per
Tax Equity Shares Share Ratio
2017-18 11485.10 1220.43 9.41
2018-19 12824.20 1225.86 10.46

2019-20 15584.56 1229.22 12.67
2020-21 13389.80 1230.88 10.87

2021-22 15485.65 1232.33 12.56
Graph No: 4.24

Graph showing Earning Per Share Ratio of ITC
for the year 2017-18 to 2021-22

14 12.67
12.56
12 10.87
10.46
10 9.41
8
6
4
2
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpration
During the period 2018-22, Earning Per Share Ratio are 9.41, 10.46, 12.67, 10.87. and
12.56. Earning Per Share Ratio is high in the year 2019-20. But the ratio is decreasing 10.87,
in the year 2020-21. This ratio is increasing 12.56, in the year 2021-22.
C. Leverage Ratios
1. Debt Ratio
Total Debt
Debt Ratio=
Table No: 4.25

Table showing Debt Ratio of ITC for the year 2017-18 to 2021-22
Year Total Debt Capital Employed Debt Ratio
2017-18 11.13 51411.2 2.16
2018-19 7.89 57957.68 1.36

2019-20 5.63 64034.79 8.79
2020-21 5.28 59009.86 8.94

2021-22 5.28 61404.85 8.59
Graph No: 4.25

Graph showing Debt Ratio of ITC for the year 2017-18 to 2021-22
Debt Ratio
10
8.79 8.94 8.59
9
8
7
Debt Ratio
6
5
4
3 2.16
2 1.36
1
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
During the period 2018-22, Debt Ratios are 2.16, 1.36, 8.79, 8.94 and 8.59. The Debt
Ratio is increased from the value 8.79 to 8.94. The Debt Ratio is decreased to the 1.36, in the
year 2018-19.
2. Debt- Equity Ratio
Total Debt
Net Worth
Table No: 4.26

Table showing Debt- Equity Ratio of ITC for the year 2017-18 to 2021-22
Year Total Debt Net Worth Debt-Equity
Gr
Ratio
ap h
2017-18 62381.31 51400.07 1.21
2018-19 69797.92 57949.79 1.20
2019-20 75235.36 64029.16 1.17

2020-21 71580.54 59004.58 1.21
2021-22 75092.50 61399.57 1.22

No: 4.26
Graph showing Debt- Equity Ratio of ITC for the year 2017-18 to 2021-22
Debt- Equity Ratio

1.23
1.22
1.22
1.21 1.21
1.21
Debt- Equity Ratio
1.2
1.2
1.19
1.18
1.17
1.17
1.16
1.15
1.14
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
During the period 2018-22, the Debt- Equity Ratios are 1.21, 1.20, 1.17 ,1.21 and 1.22.
In the year 2021-22 the Debt- Equity Ratio is high 1.22. And low value in this ratio is 1.17,
in the year 2019-20.
EBIT
Interest
Table No: 4.27

Table showing Interest Coverage Ratio of ITC
for the year 2017-18 to 2021-22
Year EBIT Interest Interest Gr
ap Coverage Ratio h
2017-18 18783.67 89.91 20 .89
2018-19 20586.99 45.42 45.32

2019-20 21609.05 54.68 39.51
2020-21 19616.47 44.58 44.02

2021-22 22494.76 39.36 57.15
No: 4.27
Graph showing Interest Coverage Ratio of ITC
for the year 2017-18 to 2021-22

70
60 57.15
50 45.32 44.02
39.51
40
30
20.89
20
10
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
During the period 2017-18 to 2021-22, Interest Coverage Ratios are 20.89, 45.32,
39.51, 44.02 and 57.15. In the year 2017-18, it slightly decreased to 20.89, but increased in
the 45.32, in the year 2018-19. In the ratio high 57.15 in the year 2021-22.
'
Sharehold e s Funds
Proprietary Ratio=
Total Assets
Table No: 4.28

Table showing Proprietary Ratio of ITC
for the year 2017-18 to 2021-22
Year Shareholder’s Total Assets Proprietary
Funds Ratio
2017-18 51400.07 62381.31 0.82
2018-19 57949.79 69797.92 0.83

2019-20 64029.16 75235.36 0.85
2020-21 59004.58 71580.54 0.82

2021-22 61399.57 75092.50 0.81 Gra
ph No:
4.28
Graph showing Proprietary Ratio of ITC
for the year 2017-18 to 2021-22
Proprietary Ratio
0.86
0.85
0.85
Proprietary Ratio
0.84
0.83
0.83
0.82 0.82
0.82
0.81
0.81
0.8
0.79
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
During the period 2018-22, the proprietary ratios are 0.82, 0.83, 0.85,0.82 and 0.81. In
the year 2019-20 the Proprietary Ratio is high 0.85.
D.Activity or Efficiency Ratio
Net sales
Working capital
Table No: 4.29

Table showing Working Capital Turnover Ratio of ITC
for the year 2017-18 to 2021-22
Year Net Sales Working Working Capital
Capital Turnover Ratio
2017-18 43448.94 15647 2.77
2018-19 48352.68 19947.4 2.42
2019-20 49404.05 27417.5 1.80

2020-21 49272.78 21641.25 2.27
2021-22 65204.96 19463.92 3.35 Gra

pg No:
4.29
Graph showing Working Capital Turnover Ratio of ITC
for the year 2017-18 to 2021-22

4
3.5 3.35
3 2.77
2.42 2.27
2.5
2 1.8
tio
1.5
1
0.5
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
Working Capital Turnover Ratio is useful to measure the operating efficiency of the
firm.
During the period 2018-22, Working Capital Turnover Ratios are 2.77, 2.42, 1.8, 2.27. and
3.35.In the year 2017-18, high of in this ratio is 2.77.
Net Sales
Total Assets
Table No: 4.30
Table showing Total Assets Turnover Ratio of ITC
for the year 2017-18 to 2021-22
Turnover Ratio
2017-18 43448.94 62381.31 0.69
2018-19 48352.68 69797.92 0.69
2019-20 49404.05 75235.36 0.65

2020-21 49272.78 71580.54 0.68
2021-22 65204.96 75092.50 0.86
Graph No: 4.30

Graph showing Total Assets Turnover Ratio of ITC
for the year 2017-18 to 2021-22

1
0.9 0.86
0.8
0.69 0.69 0.68
0.7 0.65
0.6
0.5
0.4
0.3
0.2
0.1
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
During the period 2018-22, Total Assets Turnover Ratio is increased from the value 0.69,
in the year 2017-18. It shows the effective capacity of the total assets. Total Assets Turnover
Ratio is decreasing in this year 2019-20, 0.65. In the year 2021-22, this ratio is high 0.86.
Net Sales
Average Debtors
Table No: 4.31
Table showing Debtors Turnover Ratio of ITC
for the year 2017-18 to 2021-22
Year Net Sales Average Debtors Debtors
Turnover Ratio
2017-18 43448.94 2357.01 18.43

2018-19 48352.68 3646.22 13.26
2019-20 49404.05 2092.00 23.61

2020-21 49272.78 2090.35 23.57
2021-22 65204.96 1952.50 33.39

Gra
ph No: 4.31
Graph showing Debtors Turnover Ratio of ITC
for the year 2016-17 to 2020-21

40
35 33.39
30
25 23.61 23.57
20 18.43
15 13.26
10
5
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
During the period 2018-22, Debtors Turnover Ratios are 18.43, 13.26, 23.61, 23.57 and
33.39. Debtors Turnover Ratio is high in the year 2021-22, 3.39. But the ratio is decreasing in
the year 2017-18, 18.43. Again decreased 13.26 in this year 2018-19.
Cost of Goods Sold

Average Inventory
Table No: 4.32
Table showing Inventory Turnover Ratio of ITC
for the year 2017-18 to 2021-22
Year Cost of Goods Average Invetory Gr

ap Sold Inventory Turnover Ratio h
2017-18 11943.75 7237.15 1.65
2018-19 13403.01 7587.24 1.76

2019-20 13810.70 8038.07 1.71
2020-21 13939.84 9470.87 1.47

2021-22 16399.94 9997.77 1.64
No: 4.32
Graph showing Inventory Turnover Ratio of ITC
for the year 2017-18 to 2021-22

1.8 1.76
1.75 1.71
1.7
1.65 1.64
1.65
1.6
1.55
1.5 1.47
1.45
1.4
1.35
1.3
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
During the period period 2018- 22, Inventory Turnover Ratios are 1.65, 1.76,
1.71 ,1.47, 1.64. This Ratio is inceased from 1.65 to 1.76. the high value of the 1.76, in the
year 2018-19.
A. Liquidity Ratios
1. Current Ratio
Current Assets
Current Ratio=
Current Liabilities
Table No: 4.33
Table showing Current Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Year Current Assets Current Current Ratio
Liabilities
2017-18 2767.52 1366.03 2.02
2018-19 3070.27 1582.36 1.94

2019-20 3205.15 2215.06 1.44
2020-21 4014.93 3327.76 1.20

2021-22 3593.06 3849.47 1.07 Gra
ph No: 4.33
Graph showing Current Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Current Ratio
2.5
2.02 1.94
2
Current Ratio
1.5 1.44
1.2
1.07
1
0.5
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
During the period 2018-22, the Current Ratio of the company 2.02, 1.94, 1.44, 1.20 and
1.07. In the year 2017-18, the Current Ratio is increased from 2.02 to 1.94.H igh Current
Ratio of 2.02, in this year 2017-18.
2. Quick Ratio
Quick Assets
Quick Ratio=
Current Liabilities
Table No: 4.34
Table showing Quick Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Year Quick Assets Current Quick Ratio
Liabilities
2017-18 289.48 1366.03 2.11
2018-19 243.83 1582.36 1.54
2019-20 332.44 2215.06 1.50

2020-21 475.44 3327.76 1.42
2021-22 534.78 3849.47 1.38

Gra
ph No: 4.34
Graph showing Quick Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Quick Ratio
2.5
2.11
2
1.54 1.5
Quick Ratio
1.5 1.42 1.38
0.5
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
The standard norm of the quick ratio is 1:1. During the period 2018-22, the Quick Ratio
of the company is 2.11, 1.54, 1.50, 1.42 and 1.38. In the year 2017-18, in this ratio is high
2.11. And decreasing year by year.
3. Cash Ratio

Cash Ratio =
Current Liabilities
Table No: 4.35
Table showing Cash Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Year Cash Marketable Current Cash Ratio
Securities Liabilities
2017-18 97.25 1366.03 0.07

2018-19 40.48 1582.36 0.02
2019-20 39.16 2215.06 0.01

2020-21 110.80 3327.76 0.03
2021-22 52.29 3849.47 0.01
Graph No: 4.35

Graph showing Cash Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Cash Ratio
0.08
0.07
0.07
0.06
0.05
Cash Ratio
0.04
0.03
0.03
0.02
0.02
0.01 0.01
0.01
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpratation
In all the above years the Cash Ratio is very low. The standard norm for Cash Ratio is
1:2. The company is in keeping sufficient cash, bank balances and marketable securities.
Gross Profit
Sales
Table No: 4.36
Table showing Gross Profit Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Year Gross Profit Sales Gross Profit Gr
ap Ratio h
2017-18 9464.17 9304.06 10.17
2018-19 10721.99 10482.45 10.22
2019-20 11279.60 10986.68 10.26

2020-21 12714.75 12378.83 10.27
2021-22 13805.01 13371.62 10.32

No: 4.36
Graph showing Gross Profit Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Gross Profit Ratio

16
14 13.37
12
Gross Profit Ratio
10.17 10.22 10.26 10.27

10
8
6
4
2
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
This Ratio indicates the relation ship of gross profits on sales. During the period 2018-
22,
The gross profits are 10.17, 10.22, 10.26, 10.27 and 13.37. In the year 2017- 18 the Gross
Profit ratio is 10.17. But after that it starts increasing year by year.
2. Net Profit Ratio
Profit After Tax
Sales
Table No: 4.37

Table showing Net Profit Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Year Net Profit Sales NetProfit Gr
ap Ratio h
2017-18 947.89 9304.06 10.18
2018-19 1122.20 10482.45 10.70
2019-20 1484.30 10986.68 13.50

2020-21 1760.03 12378.83 14.21
2021-22 1603.19 13371.62 11.98

No: 4.37
Graph showing Net Profit Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Net Profit Ratio

16
14.21
14 13.5
11.98
12 10.7
Net Profit Ratio
10.18
10
8
6
4
2
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
During the period 2018-22, the Net Profit Ratio is 10.18, 10.70, 13.50, 14.21 and 11.98.
In the year 2020-21 Britannia Industries have large amount of profits 14.21. But decreasing
in this ratio is 11.98. The Net Profit Ratio ratio is high 14.21, in the year 2020-21.
Operating Profit
Net Sales
Table No: 4.38

Table showing Operating Profit Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Year Net Profit Sales NetProfit Gr
ap Ratio h
2017-18 1410.48 9304.06 15.15
2018-19 1662.13 10482.45 15.85
2019-20 1770.69 10986.68 16.11

2020-21 2351.32 12378.83 18.99
2021-22 2089.16 13371.62 15.62

No: 4.38
Graph showing Operating Profit Ratio of Britannia Industries
for the year 2017-18 to 2021-22

20 18.99
18 16.11
15.15 15.85 15.62
16
14
12
10
8
6
4
2
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
During the period 2018-18, Operating Profit Ratios are 15.15, 15.85, 16.11,18.99 and
15.62.The high of Operating Profit Ratio is 18.99, in the year 2020-21. The Operating Profit
Ratio is increasing year by year 2018 to 21. And after the decreasing 15.62.
ROCE= ×100
Capital Employed
Table No: 4.39
Table showing ROCE Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Year PBIT Capital Employed ROCE Ratio

Gr
2017-18 1445.20 3235.28 44.67
ap h
2018-19 1716.11 4039.45 42.48
2019-20 1889.26 4274.65 44.19

2020-21 2379.44 3319.53 71.68
2021-22 2145.12 2402.54 89.28

No: 4.39
Graph showing ROCE Ratio of Britannia Industries
for the year 2017-18 to 2021-22

100
89.28
90
80 71.68
70
60
Ratio
50 44.67 42.48 44.19

40
30
20
10
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
During the period 2017-18 to 2021-22, Return on Capital Employed Ratios are 44.67,
42.48, 44.19, 71.68 and 89.28. In the year 2021-22, in this ratio is hig of the 89.28. And
decreasing the 42.48, in the year 2018-19.
Profit After Tax

Table No: 4.40
Table showing Earning Per Share Ratio of Britannia Industries
For the year 2017-18 to 2021-22
Gr
Year Profit After Tax Number of Earning Per
ap h
Shares Share Ratio
2017-18 947.89 24.01 39.47
2018-19 1122.20 24.03 46.69
2019-20 1484.30 24.05 61.71

2020-21 1760.03 24.09 73.06
2021-22 1603.19 24.09 66.55

No: 4.40
Graph showing Earning Per Share Ratio of Britannia Industries
For the year 2017-18 to 2021-22

80 73.06
70 66.55
61.71
60
50 46.69
39.47
40
30
20
10
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
Earning Per Share Ratio is Rs. 39.47, in the year 2018-19. After increasing in this ratio is
year by year.The high of the Earning Per Share Ratio is 73.06, in the year 2020-21.
C. Leverage Ratios
1. Debt Ratio
Total Debt
Debt Ratio=
Table No: 4.41
Table showing Debt Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Year Total Debt Capital Debt Ratio
Employed
2017-18 9.31 3244.59 2.86
2018-19 0.26 4039.76 6.43
2019-20 1202.12 5476.77 2.19

2020-21 1797.25 5116.78 3.51
2021-22 2178.74 4581.28 4.75 Gra

ph No:
4.41
Grapg showing Debt Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Debt Ratio
7
6.43
6
5 4.75
4 3.51
3 2.86
2.19
2
0
2017-18 2018-19 2019-20 2020-21 2021-22
Interpretation
During the year 2018-22, the Debt Ratios are 2.86, 6.43, 2.19, 3.51 and 4.75. The Debt
Ratio is high 6.43, in the year 2018-19. The Debt Ratio is decreased 2.19, in the year 2019-
20. And increased 3.51, in the year 2020-21.
2. Debt- Equity Ratio
Total Debt
Net Worth
Table No: 4.42
Table showing Debt- Equity Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Year Total Debt Net Worth Debt-Equity Ratio Gr
ap h
2017-18 9.31 3235.28 2.87
2018-19 0.26 4039.45 6.43
2019-20 1202.12 4274.65 2.81

2020-21 1797.25 3319.53 5.41
2021-22 2178.74 2402.54 9.06

No: 4.42
Graph showing Debt- Equity Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Debt-Equity Ratio
10
9.06
9
8
7 6.43
6 5.41
5
4
2.87 2.81
3
2
1
0
2017-18 2018-19 2019-20 2020-21 2021-22
Interpretation
During the period 2018-22, the Debt- Equity Ratios are 2.87, 6.43, 2.81, 5.41 and 9.06.
The Debt- Equity Ratio is 6.43 in the year 2018-19. And decreasing the Debt- Equity Ratio is
2.81. In the year 2019-20. This ratio is increasing 9.06, in the year 2021-22.
EBIT
Interest
Table No: 4.43

Table showing Interest Coverage Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Year EBIT Interest Interest

Coverage Ratio
2017-18 1566.41 1.45 10.80
2018-19 1852.65 1.54 12.30
2019-20 2125.12 65.17 32.60

2020-21 2644.02 97.81 27.03
2021-22 2448.59 133.46 18.34

Gra
ph No: 4.43
Graph showing Interest Coverage Ratio of Britannia Industries
for the year 2017-18 to 2021-22

35 32.6
30 27.03
25
20 18.34
15 12.3
10.8
10
5
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
Interest Coverage ratio is 10.80, in the year 2017-18. From there it goes on increasing
as in 2019-20. It is increased drastically to 32.60. After this ratio is decreased 27.03, in the
year 2020-21.Interest Coverage Ratio is high 32.60, in the year 2019-20.
'
Sharehold e s Funds
Proprietary Ratio=
Total Assets
Table No: 4.44

Table showing Proprietary Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Year Shareholder’s Total Assets Proprietary
Funds Ratio
2017-18 3235.28 4627.30 0.69
2018-19 4039.45 5652.97 0.71
2019-20 4274.65 7253.34 0.58

2020-21 31319.53 7416.01 0.44
2021-22 2402.54 7002.95 0.34

Gra
ph No: 4.44
Graph showing Proprietary Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Proprietary Ratio
0.8
0.69 0.71
0.7
0.6 0.58
Proprietary Ratio
0.5 0.44
0.4 0.34
0.3
0.2
0.1
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
During the period 2018-22, the Proprietary Ratios are 0.69, 0.71, 0.58, 0.44 and 0.34. In the
year 2018-19, Proprietary Ratio is high 0.71.After decreasing this ratio is year by year.
1.Working Capital Turnover Ratio
Net sales
Working capital
Table No: 4.45
Table showing Working Capital Turnover Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Year Net Sales Working Capital Working Capital

Turnover Ratio
2017-18 9304.06 1401.49 6.63
2018-19 10482.45 1487.91 7.04

2019-20 10986.68 990.09 11.09
2020-21 12378.83 687.17 18.01

2021-22 13371.62 256.41 19.17
Gra
ph No: 4.45
Graph showing Working Capital Turnover Ratio of Britannia Industries
for the year 2017-18 to 2021-22

25
20 19.17
18.01
15
11.09
tio
10
6.63 7.04
5
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
Working Capital Turnover ratio is useful to measure the operating efficiency of the
firm. Working Capital Turnover Ratio is 6.63 in the year 2017-18. After increasing this
ratiois year by year 2021-21.This ratio is increasing 19.17, in the year 2021-22.
Net Sales
Total Assets
Table No: 4.46

Table showing Total Assets Turnover Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Turnover Ratio
2017-18 9304.06 4627.30 2.01
2018-19 10482.45 5652.97 1.85
2019-20 10986.68 7253.34 1.51

2020-21 12378.83 7416.01 1.66
2021-22 13371.62 7002.95 1.90
Graph No: 4.46

Graph showing Total Assets Turnover Ratio of Britannia Industries
for the year 2017-18 to 2021-22

2.5
2.01
2 1.85 1.9
1.66
1.51
1.5
0.5
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
During the period 2018-22, Total Assets Turnover Ratios are 2.01, 1.85, 1.51, 1.66 and
1.90. Total Assets Turnover Ratio is increased from the value 2.01. After decreasing the 1.85,
in the year 2018-19. Again decreasing 1.51 and after increasing year by year in this ratio.
Net Sales
Average Debtors
Table No: 4.47

Table showing Debtors Turnover Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Year Net Sales Average Debtors Turnover
Debtors Ratio
2017-18 9304.06 230.32 40.39
2018-19 10482.45 350.96 29.86
2019-20 10986.68 242.23 45.35

2020-21 12378.83 198.36 62.40
2021-22 13371.62 253.85 52.67
Graph No: 4.47

Graph showing Debtors Turnover Ratio of Britannia Industries
for the year 2017-18 to 2021-22

70
62.4
60
52.67
50 45.35
40.39
40
29.86
30
20
10
0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Interpretation
During the period 2018-22, Debtors Turnover Ratios are 40.39, 29.86, 45.35 ,62.40 and
52.67. Debtors Turnover Ratio is high in the year 2020-21-17, 62.40. But also decreasing
52.67, in the year 2021-22.
Cost of Goods Sold

Average Inventory
Table No: 4.48

Table showing Inventory Turnover Ratio of Britannia Industries
for the year 2017-18 to 2021-22
Year Cost of Goods Average Inventory
Sold Inventory Turnover Ratio
2017-18 4405.17 594.58 7.40
2018-19 4944.77 718.89 6.87
2019-20 5052.67 633.53 7.97

2020-21 5509.69 991.28 5.55
2021-22 6366.31 1251.64 5.08
Graph No: 4.48

Graph showing Inventory Turnover Ratio of Britannia Industries
for the year 2017-18 to 2021-22

9
7.97
8 7.4
6.87
7
6 5.55
5.08
5
4
3
2
1
0
2017-18 2018-19 2019-20 2020-21 2021-22
Interpretation
During the period 2018-22, Inventory Turnover Ratios are 7.40, 6.87, 7.97, 5.55 and
5.08. Inventory Turnover Ratio is high 7.97, in this year 2019-20. And decreasing in this ratio
is 5.55 in the year 2020-21. Again decreasing Inventory Turnover Ratio is 5.08, in the year
2021-22.
5. FINDINGS, SUGGESTIONS AND CONCLUSION
5.1 FINDINGS
1. In Current Ratio the Hindustan Unilever Limited has shown the low standard norm
comparative to the other two companies like ITC and Britannia Industries.The ITC
company has maintained good Current Ratios like 2.76 in 2017-18.And 2.69 in 2021-22.
2. Hindustan Unilever Limited and Britannia Industries performed well in Quick Ratios but
the Britannia Industies the Quick Ratios with 2.11 in 2017-18 to 1.38 in 2021-22. But
ITC company performed low in Quick Ratio.
3. In Cash Ratio all the companies performed very low and maintained consistency by
decreasing their profits.
4. The Hindustan Unilever Limited company performed good in Gross Profit Ratio
comparative to ITC and Britannia Industries. The Hindustan Unilever Limited has
highest with 14.67. And ITC with 10.66 and Britannia Industries with 10.32.
5. In Net Profit Ratio all the companies performed good and maintained consistency by
increasing their profits.
6. The ITC company performed good in Operating Profit Ratio comparative to other two
companies like Hindustan Unilever Limited and Britannia Industries.
7. In Return on Capital Employed Ratio the Hindustan Unilever Limited company well
comparative to other two companies like ITC and Britannia Industies.
8. Britannia Industries Performed well at Earning Per Share Ratio in all five years.
9. Hindustan Unilever Limited company performed poorly in Debt Ratio comparative to
the ITC and Britannia Industries.
10. In Debt-Equity Ratio Britannia Industries performed well and it increased the ratio 2.87
in 2017-18 to 9.06 in 2022-21. The Hindustan Unilever Limited and ITC performed
low but they increased year by year.
11. Hindustan Unilever Limited performed well in Interest Coverage Ratio rather than two
companies.
12. In Proprietary Ratio all the companies performed very low. Hindustan Unilever Limited
company performed well in working Capital Turnover Ratio comparative two companies
13. Britannia Industries performed well in Total Assets Turnover Ratio rather than two
companies.
14. Britannia Industies has performed well in Debtors Turnover Ratio and Inventory
Turnover Ratios rather than two companies Hindustan Unilever Limited and ITC.
5.2 SUGGESTIONS
1. ITC company has poorly performed in majority of the ratios they need to improve Quick
Ratio, Cash Ratio, Total Assets Turnover Ratio and Proprietary Ratios.
2. The ITC company need maintain the standard norms in ratios and improve the sales,
paying shareholders and fixed assets should maintain the company.
3. Hindustan Unilever Limited company is well at maximum number of thr ratios but poorly
performed in Return on Capital Employed and Earning Per Share, they must focus on
sales and improving the profits
4. Hindustan Unilever Limited company must expand their business to increases the
Earning Per Share Ratio.
5. Britannia Industries is poor at Net Profit Ratio they need to improve the profits by
maintaining the standard norms of the company.
6. Britannia Industries poor at Total Assets Turnover Ratio, it must maintain standard
Norms of the company and increase thr Total Asseta Turnover Ratio.
7. Britannia Industries poor at Proprietary Ratio they need to improve Proprietary Ratio in
the performance of the company.
5.3 CONCLUSION
Fast Moving Consumer Goods (FMCG) sector is the most emerging sectorin India
because in India domestic market demand is very high compared to other developers and
developing countries. FMCG sector in India is having a positive growth in the coming few
years because changingrules, regulations and guidelines of the Food Safety and Standards
Authority of India. The products like Consumer Food Services, Soft drinks, Toiletries,
Personal care, and Household products are now more demanded and beneficial in the
reduction of costs.
Financial Performance of Fast Moving Consumer Goods (FMCG) companies are
Hindustan Unilever Limited, ITC, Britannia Industries. Tools used for the analysis are ratios.
Ratios are most power technique for analysis of companies financial performance. The
operating profit ratio of ITC is the highest compare the remaining two companies which
shows that ITC has got a good performance as the as net pfofit is considered while on other
hand Britannia Industries is lowest operating profit. Turnover ratios of Hindustan Unilever
Limited and Britannia Industries is high position and HUL and Britannia Industries
companies successfully deals with the assets and resources. The Profitability Ratios of
Hindustan Unilever Limited is higher than other two companies like ITC and Britannia
Industries. For this study it is found that Hindustan Unilever Limited shows more liquidity
compare with other FMCG companies taken for the study.
WEBSITES
1. http://www.moneycontrol.com.com/stockmarketsindia/
2. http://www.hul.co.in/
3. http://www.itcportal.com/
4. http://www.britannia.co.in/
REFERENCES
1. Paswan, R. (2016). Financial Performance of FMCG Companies in India: A
Comparative
Study. ANVESHAK-International Journal of Management, 5(2).doi:10.15410/aijm/2016/
v5i2/100706.
2. Bodhankar, A. (2020). The New FMCG Consumer (Challenge for FMCG Sector).
Journal
of Advanced Research In Dynamic And Control Systems, 12(SP8), 582-587.
3. Joshi, A. (2011). A Study of Profitability Analysis of Selected FMCG Companies in
India.
Indian Journal of Applied Research, 3(6),368-370.
4. Bagchi, B. and Khamrui, B. (2021), Financial Performance of FMCG Companiesin
India.
a Comparative Study between Hul and Britannia Industries, ZENITH International
Journal
of Business Economics and Management Research, Vol. 2(3), pp.222-232.
5 . Ranjit K.P. (2013), Analysis of Solvency of Selected FMCG Companies in India, Global
Journal of Management and Business Studies, Vol, 3(4), pp. 401-406.
6. Sharma, M.,& Grover, M. (2016). Financial Performance Analysis Through Position
Statements of Selected FMCG Companies. Specialty Journal of Accounting And
Economics, 2 (2), 55-62.
7. Parmar, S. (2017). A Study on Financial Efficiency of Selected FMCG Companies in
India. Journal of Commerce and Management, (22), 1-9.
8. Chowhan, D.,& Memon, S. (2011). Performance Evaluation of Select Global FMCG

Brands on Customer Based Brand Equity Scale. Indian Journal of Applied Research,
1(3), 155-158.
9. Chakraborty, K., & Sarkar, S. (2015). Financial Performance of Selected FMCG
Companies in India during Post-Reform Era. Strategic Infrastructure Development For
Economic Growth and Social Change, 260-272.
10. Chakraborty, S. (2017). Performance Evaluation of Leading FMCG Firms. ICTACT
Journal on Management Studies, 3(3), 587-596.
11. LATHA, M., & RAO, S. (2017). Determinants of Profitability: Evidence from Listed
Companies in the BSE- FMCG. International Journal of Economic Perspectives,
11(3), 1264-1272.
12 . Patel, R., Singhai, M., & Dwivedi, P. (2018). Rating and Financial Performance of
Selected Indian FMCG Companies: An Exploratory Study. Shabd Braham
International Research Journal of Indian Languages, 6(8),20-27.

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A STUDY ON

FINANCIAL PERFORMANCE OF SELECTED FMCG

A Project Report Submitted to

Under the guidance and supervision of

DEPARTMENT OF MANAGEMENT STUDIES

MADANAPALLE – 517 325

I declare that this project entitled “A STUDY ON FINANCIAL PERFORMANCE OF

THREE SELCTED FMCG COMPANIES IN INDIA ” is a Bonafide work submitted to

Jawaharlal Nehru Technological University Anantapur, Ananthapuramu under the guidance

and supervision of Dr.N.GANGISETTY, Professor, Department of Management Studies,

OF BUSINESS ADMINISTRATION is a record of original work done by me and that the

Date: (T. Reddi kumar)

THREE SELECTED FMCG COMPANIES IN INDIA ” submitted by Mr.T.Reddi kumar

(Reg.No.20691E00J8) for the award of Master of Business Administration of Jawaharlal Nehru

Technological University Anantapur, Ananthapuramu, is a record of independent project work

Dr. N.GANGISETTY M.Com. M.B.A., Ph.D. DR. SREMMANT BASU

INTERNAL EXAMINER EXTERNALEXAMINER

I have deep sense of gratitude to Dr. N. GANGISETTY, M.Com, MBA, Ph.D.,

I take this opportunity to thank Dr. N. VIJAYA BHASKAR CHOUDARY GARU,

2 INDUSTRY & COMPANY PROFILE

4 DATA ANALYSIS & INTERPRETATION

5 SUMMARY OF FINDINGS, SUGGESTIONS & CONCLUSION

Table showing Cash Ratio of Hindustan Unilever Limited for the

Table showing Net Profit Ratio of Hindustan Unilever Limited

Table showing Operating Profit Ratio of Hindustan Unilever

Table showing Return on Capital Employed Ratio of Hindustan

Table showing Earning Per Share Ratio of Hindustan Unilever

Table showing Debt Ratio of Hindustan Unilever Limited for the

Table showing Debt- Equity Ratio of Hindustan Unilever Limited

Table showing Interest Coverage Ratio of Hindustan Unilever

Table showing Proprietary Ratio of Hindustan Unilever Limited

Table showing Working Capital Turnover Ratio of Hindustan

Table showing Total Assets Turnover Ratio of Hindustan

Table showing Debtors Turnover Ratio of Hindustan Unilever

Table showing Current Ratio of ITC for the year

Table showing Gross Profit Ratio of ITC for the year

Table showing Net Profit Ratio of ITC for the year

Table showing Operating Profit Ratio of ITC for the year

Table showing Return on Capital Employed Ratio of ITC for the

Table showing Debt- Equity Ratio of ITC for the year

Table showing Interest Coverage Ratio of ITC for the year

Table showing Proprietary Ratio of ITC for the year

Table showing Working Capital Turnover Ratio of ITC for the

Table showing Debtors Turnover Ratio of ITC for the year

Table showing Current Ratio of Britannia Industries for the year

Table showing Quick Ratio of Britannia Industries For the year

Table showing Cash Ratio of Britannia Industries for the year

Table showing Gross Profit Ratio of Britannia Industries for the

Table showing Net Profit Ratio of Britannia Industries for the

Table showing Operating Profit Ratio of Britannia Industries for

Table showing Return on Capital Employed Ratio of Britannia

Table showing Earning Per Share Ratio of Britannia Industries

Table showing Debt Ratio of Britannia Industries for the year

Table showing Debt- Equity Ratio of Britannia Industries for the

Table showing Interest Coversge Ratio of Britannia Industries for

Table showing Proprietary Ratio of Britannia Industries for the

Table showing Working Capital Turnover Ratio of Britannia

Table showing Total Assets Turnover Ratio of Britannia

Table showing Debtors Turnover Ratio of Britannia Industries

Graph showing Cash Ratio of Hindustan Unilever Limited for the

Graph showing Net Profit Ratio of Hindustan Unilever Limited

Graph showing Operating Profit Ratio of Hindustan Unilever

Graph showing Return on Capital Employed Ratio of Hindustan