An Empirical Study of The FMCG Sector Using Dupont Analysis

Abstract

This study aims to evaluate the financial performance of the fast-moving consumer goods (FMCG) sector in India. The DuPont model is a valuable instrument in the specialized literature and practice concerning economic and financial performance. The DuPont model analyses Return on Equity (ROE) and Return on Assets (ROA). The Return on Equity (ROE) breaks down performance into three elements: Net Profit Margin, Total Asset Turnover, and the Equity Multiplier. To accomplish the objectives of the study, the study used the DuPont analysis to analyse the financial ratios over a five-year period (2019–2023). The study reveals that DuPont analysis facilitates a comprehensive evaluation by identifying management's efficiency competencies.