Financial performance measures a firm's overall financial health over a given time frame and can also be used to examine comparable performance companies operating across the same industry. The fast-moving consumer goods (FMCG) segment is one of the largest sectors within the Indian economy. FMCG companies in India have been a strong presence with an exceptional pace of boom during the last two decades. The reason behind is the growing client incomes and rapid change in consumer tastes and preferences. Large scale production, modern retailing policies, branding, and distribution network have provided FMCGs an edge over others in raising profits. However, the presence of MNCs in the Indian market created a threat to domestic companies in the FMCG sector. Liquidity ratios are used to determine a company's ability to meet its short-term debt obligations. The present paper collects financial indicators for select FMCG Companies in India like Hindustan Unilever Ltd, Britannia Industries Ltd., Nestlé India, Amul and P&G for period of year 2016 to 2020. The study is based on the secondary data collected and Regression analysis is used to investigate the factors associated with Liquidity. The findings of the research assist company to reveal trends in short-term and long-term financial components that predict the liquidity in selected FMGC companies.
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Keywords: Financial Performance, FMCG Companies, Indian Economy, Regression ANALYSIS.