Published Online:April 2025
Product Name:The IUP Journal of Accounting Research & Audit Practices
Product Type:Article
Product Code:IJARAP120425
DOI:10.71329/IUPJARAP/2025.24.2.231-246
Author Name:Krishna Ashutoshbhai Vyas
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:231-246
The paper evaluates fast-moving consumer goods (FMCG) companies in India over a tenyear period (2013-14 to 2022-23) by applying the Springate model, known for predicting financial distress. Ten selected FMCG companies are scrutinized using statistical tools, including descriptive statistics, correlation matrices and regression analysis. The results showcase diverse Springate scores, providing nuanced insights into financial stability, distress, and recovery for each company. Correlation analysis reveals significant associations among financial ratios, while regression analysis identifies predictors influencing net profit margin. The study contributes valuable insights into the financial dynamics of the studied FMCG companies.
Fast-moving consumer goods (FMCG) sector, encompassing essential daily products, is a cornerstone of the Indian economy. In the face of dynamic market forces, assessing the financial stability of FMCG companies becomes crucial.