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Short-Term Liquidity Dynamics: A Study of ITC Ltd and Dabur India Ltd
Subject area: Management and Commerce · Area of research: Short-Term Liquidity Dynamics
DOI: https://doi.org/10.64388/IREV9I10-1716329
Abstract
Fast-Moving Consumer Goods (FMCG) companies produce non-durable goods that are sold quickly at relatively low cost, such as beverages, packaged goods and cleaning products. ITC Ltd and Dabur India Limited have emerged as major players in the FMCG sector, each with its own financial context and strategic vision. This study presents a human perspective on their liquidity position (working capital-based liquidity measure) and a comparative analysis of their financial trajectory. The research is based on secondary data, i.e., annual reports of selected companies. This study analyzes the comparative short-term liquidity position of ITC Ltd and Dabur India Limited for the period from 2020 to 2025. For the convenience of the research, current ratio and quick ratio or acid test ratio have been adopted as effective capital-based liquidity measurement tools to assess the level of liquidity situation of the selected companies. It also Identify which companies have good liquidity situations and which are lagging behind, and mention possible reasons for this.
Keywords
Dabur India Ltd, FMCG, Financial Analysis, ITC Ltd, India, Liquidity position, Working Capital
References
[1] Saleem, Q., & Rehman, R. U. (2011). Impacts of liquidity rates on profitability (Case of oil painting and gas companies of Pakistan).
[2] Mehrotra S. Working capital trends and liquidity Analysis of FMCG sector in India, IOSR Journal of Business and Management, 9(4), 2013, pp. 45- 52.
[3] Sharma A, A relative study of profitability and liquidity between HUL and DABUR INDIA, International Journal of Social Science and Interdisciplinary Research, 5(1). 2016, pp. 57- 63
[4] Garg A Tyagi A. A relative Analysis on Financial Analysis with Special References to FMCG Sector. OPJU Business Review, 20223(6) 79- 86.
[5] Chirodiya P A. A relative analysis of liquidity of ITC LTD & HUL LTD. International Journal of Commerce and Management Research www.managejournal.com28-08-2023 Volume 9, Issue 4, 2023, runner No. 86- 88
[6] DR. CHAVAN G, CHOUDHARY A, DAVE V. Comparative Study of Financial Analysis of Reliance Jio infocomm limited and bharti airtel limited. April 2024, Volume 11, Issue 4.
[7] Annual Report of ITC Ltd 2019- 20 to 2024- 25 and of Dabur India Ltd 2019- 20 to 2024- 25.
[8] https// www.moneycontrol.com/financials/itc/ratiosVI/ITC and https// www.moneycontrol.com/financials/daburindia/ratiosVI/DI
How to cite this paper
@article{1716329,
author = {Sujan Das},
title = {Short-Term Liquidity Dynamics: A Study of ITC Ltd and Dabur India Ltd},
journal = {Iconic Research And Engineering Journals},
year = {2026},
volume = {9},
number = {10},
pages = {1084-1088},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1716329.pdf},
abstract = {Fast-Moving Consumer Goods (FMCG) companies produce non-durable goods that are sold quickly at relatively low cost, such as beverages, packaged goods and cleaning products. ITC Ltd and Dabur India Limited have emerged as major players in the FMCG sector, each with its own financial context and strategic vision. This study presents a human perspective on their liquidity position (working capital-based liquidity measure) and a comparative analysis of their financial trajectory. The research is based on secondary data, i.e., annual reports of selected companies. This study analyzes the comparative short-term liquidity position of ITC Ltd and Dabur India Limited for the period from 2020 to 2025. For the convenience of the research, current ratio and quick ratio or acid test ratio have been adopted as effective capital-based liquidity measurement tools to assess the level of liquidity situation of the selected companies. It also Identify which companies have good liquidity situations and which are lagging behind, and mention possible reasons for this.},
keywords = {Dabur India Ltd, FMCG, Financial Analysis, ITC Ltd, India, Liquidity position, Working Capital},
month = {April},
doi = {https://doi.org/10.64388/IREV9I10-1716329}
}