Efficiency Ratios of FMCG Sector of India for the Period from 2004-05 to 2013-14

In this research paper attempt have been made to analyses the efficiency of FMCG Sector of India for the period of 10 years by taking a sample of 16 companies listed on BSE or NSE. The financial data have been collected for the period of 10 years from 2004-2005 to 2013-2014 of 16 companies and found out 4efficiency ratios-Debtors Turnover Ratio, Inventory Turnover Ratio, Assets Turnover Ratio, Fixed Assets Turnover Ratio. From all these ratios researcher have worked out composite ratios by using ` paid-up share capital` as weight and found out weighted mean of these ratios for 10 years. The researcher has used ratio analysis and various statistical techniques such as Average, Coefficient of correlation, Coefficient of Determination, Trend Analysis and Mann Kendal test. The study reveals that there was a speedy realization of cash from debtors. However, cost of collection from debtors increases during the year 2010-2011(25.40).Inventory Turnover ratio is maintained at the desired level. The Assets Turnover Ratio for the sector was 1.68 in the year 2004-2005 and reached to 2.05 in the 2013-2014. It indicates that there is efficient utilization of assets which resulted in to increase in sales during the study period. So we can say that there is effective and profitable utilization of assets in the sector. Fixed Assets Turnover has upward risen trend during the study period. It means there is efficient utilization of fixed assets in the business.