Journal of Economics and Trade
 

Journal of Economics and Trade, ISSN No. : 2456-8821, Vol.: 1, Issue.: 1

Original Research Article

DETERMINING OPTIMAL INDEX OF WORKING CAPITAL MANAGEMENT FOR INDIAN FMCG SECTOR (EMPIRICAL EVIDENCE ON ITS CONTRIBUTION TO EFFICIENCY)

 

A. AROUL MARIE1* AND R. AZHAGAIAH2

1Research Scholar, Department of Commerce, Kanchi Mamunivar Centre for Postgraduate Studies, Pondicherry University, Pondicherry, India.

2Department of Commerce, Kanchi Mamunivar Centre for Postgraduate Studies, Pondicherry University, Pondicherry, India.

Abstracts

Firms with efficient working capital management generate more free cash flows will result in a higher business valuation. The present study aims to analyze the working capital management efficiency of firms in Fast Moving Consumer Goods industry in India selecting a sample of all the firms of CNX FMCG index of National Stock Exchange of India for the period from 2003-04 to 2014-15. Performance index, utilization index, efficiency index are used to measure the efficiency of working capital management. Empirical results proved that the Indian Fast Moving Consumer Goods industry performed remarkably well during the study period.

Keywords :

Working capital management efficiency; Indian FMCG industry; alternative ratio model; performance index; utilization index; efficiency index.