Working Capital Management in FMCG Sector ITC Limited

Abstract

Working capital management is an important aspect of financial management that ensures the smooth functioning and operational efficiency of business organizations. This study focuses on the working capital management practices of ITC Limited in the FMCG sector. The research aims to analyze the efficiency of ITC Limited in managing its short-term assets and liabilities through financial ratio analysis. The study examines important financial indicators such as current ratio, quick ratio, inventory turnover ratio, working capital turnover ratio, and net profit ratio to evaluate the companys liquidity, profitability, and operational performance. The research is based on secondary data collected from annual reports, financial statements, journals, and company publications. Effective working capital management helps FMCG companies maintain adequate cash flow, manage inventory efficiently, and improve profitability in a highly competitive market. The findings of the study indicate that ITC Limited has maintained a satisfactory liquidity position and efficient utilization of working capital resources over the study period. The study concludes that proper financial planning, inventory control, and efficient management of current assets and liabilities contribute significantly to the financial stability and long-term growth of the company in the FMCG sector. Keywords: Working Capital Management, FMCG Sector, ITC Limited, Liquidity Management, Inventory Management, Receivables Management, Cash Management, Current Assets, Current Liabilities, Financial Performance.