Article Details
  • 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
Volume 24, Issue 2, April 2025
Evaluation of Selected Indian FMCG Companies Using Springate Model
Abstract

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.

Introduction

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.