A comparative study on financial position of HUL and ITC company
Abstract
FMCG is the country’s fourth largest industry, employing roughly three million people, or around 5% of total manufacturing employment. From its current level of $49 billion, India’s fast moving consumer goods (FMCG) market is predicted to more than double to $104 billion by 2020. The ratio analysis, which is a crucial feature of every company’s financial statements, has been used to examine several areas of an FMCG’s operating and financial performance, including efficiency, liquidity, and profitability. The Cash Flow Statements prepared provides complete information about cash inflows and cash outflows of a company in three activities-operating, investing and financing for a particular period of time.
In this paper, a comparative analysis of cash flow statements of ITC Ltd and HUL for a recent three-year period has been undertaken. Statistical techniques have been used to analyze the cash flow statements of selected companies. The findings of the study suggest that both the companies have same trends for operating, investing and financing activities over the selected period and ITC Ltd has better consistency than HUL in generating cash flows. The study concluded that ITC Ltd is performing better than HUL. Rural markets have little heritable relevance because overall economic expansion and prorural policies have resulted in a significant increase in the purchasing power of people in rural areas. On the other hand,
the rural equivalent is doing well. Massive quantities of commercial and concrete factory-made products are overwhelming rural square measures. A unique selling method known as “rural marketing” has arisen in this context.
Authors
Vandana Sharma, Siddharth Gulati, Suraj, Arhsi Zabeen