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The Fast-Moving Consumer Goods (FMCG) sector plays a vital role in global economies, yet the financial dynamics between small-cap and large-cap firms within this industry remain underexplored. This study investigates the differences in financial fundamentals—liquidity, profitability, leverage, and operational efficiency—between small-cap and large-cap FMCG firms. Using financial data from 10 firms (5 small-cap and 5 large-cap) over the period 2018–2022, the analysis employs ratio analysis and independent t-tests to compare key metrics. Findings reveal that small-cap firms exhibit higher leverage (mean debt-to-equity ratio = 1.8) and lower liquidity (current ratio = 1.2) compared to large-cap firms (debt-to-equity = 0.9; current ratio = 1.7). Additionally, large-cap firms demonstrate superior profitability (ROA = 8.5%) relative to small-cap firms (ROA = 5.2%). These results highlight distinct risk-return profiles, offering valuable insights for investors and policymakers. The study addresses a critical gap in the literature by providing a systematic comparison of financial health across market capitalizations within the FMCG sector, advocating for tailored financial strategies to support small-cap firms.
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"A Comparative Analysis of Financial Fundamentals in Small-Cap and Large-Cap FMCG Firms", International Journal for Research Trends and Innovation (www.ijrti.org), ISSN:2455-2631, Vol.10, Issue 3, page no.a811-a818, March-2025, Available :http://www.ijrti.org/papers/IJRTI2503100.pdf
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2456-3315 | IMPACT FACTOR: 8.14 Calculated By Google Scholar| ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.14 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator