Authors: Mohhamad Salik Choudhari
Abstract: The efficient management of working capital is essential for maintaining a company's financial stability and operational effectiveness. In the FMCG sector, where businesses deal with high sales volumes and fast inventory movement, working capital decisions have a direct impact on profitability and growth. This study compares the working capital management practices of Britannia Industries Ltd. and Dabur India Ltd. over the period FY2019–FY2024. The analysis is based on secondary data collected from company annual reports and financial databases. Key indicators such as Net Working Capital, Current Ratio, Quick Ratio, Cash Conversion Cycle, Return on Capital Employed, and Operating Cash Flow Margin were used to assess the financial performance of both companies. The results indicate that Dabur maintained higher liquidity levels and a larger working capital base throughout the study period. Britannia, however, operated with comparatively lower working capital and demonstrated stronger efficiency in managing inventory, receivables, and payables. The study finds that Britannia's approach resulted in better capital utilization and higher profitability, while Dabur's strategy provided greater financial security. The findings suggest that maintaining an optimal level of working capital is more beneficial than holding excessive current assets. The study highlights the importance of balancing liquidity and efficiency to achieve sustainable business performance.
