A Comparative Study on Working Capital Management and Cash Flow Analysis Practices of Selected Companies in FMCG Industry
Keywords:
Working capital, ratios, FMCG sector, cash flow statementAbstract
The paper examines the working capital management practices and cash flow statement of well- known firms in Fast- Moving Consumer Goods (FMCG) industry in India. The present study is focused on Hindustan Unilever Limited (HUL) and Godrej Consumer Products Limited (GCPL) as these companies are reputed in FMCG sector.The study is an attempt to analyze and evaluate working capital management practices through various parameters like; current ratio, quick ratio, inventory turnover ratio debtor’s turnover ratio and fixed asset turnover ratio etc. The Cash flow analysis is conducted with the help of indirect cash flow method. The necessary data has been collected for the period of six years from financial year 2012-13 to financial year 2017-18 for working capital management whereas data has been collected for the period of five years from financial year 2013-14 to financial year 2017-18 for cash flow statement.
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