This study analyzed the liquidity and profitability of Hindustan Unilever Ltd (HUL) and Dabur India, two leading FMCG companies in India, over the period of 2010-2011 to 2014-2015. The study found that Dabur India's liquidity and profitability were satisfactory and allowed for continuous growth. However, while HUL's profitability was satisfactory, its liquidity position was not as strong and needed improvement to ensure timely meeting of obligations. In conclusion, there was a significant difference in the liquidity and profitability positions of Dabur India, but not for HUL where profitability was strong but liquidity needed strengthening.

1. International Journal of Social Science & Interdisciplinary Research__________________________________ ISSN 2277-3630
IJSSIR, Vol. 5 (1), JANUARY (2016), pp. 57-63
Online available at indianresearchjournals.com
A COMPARATIVE STUDY OF PROFITABILITY AND LIQUIDITY
BETWEEN HINDUSTAN UNILEVER LTD. (HUL) AND DABUR INDIA
ANJALI SHARMA
RESEARCH SCHOLAR,
JAIPUR NATIONAL UNIVERSITY, RAJASTHAN, INDIA.
ABSTRACT:
In this paper an attempt has been made to analyze the liquidity and profitability of two leading
FMCG companies in India – HUL Ltd and Dabur India, over a period of five years (2010-11 and
2014-15). FMCG sector is the fourth largest sector of Indian economy and rapid changes in
consumer tastes, income and preferences has affected FMCG sector with a great pace. Liquidity
and profitability both plays a crucial rule in the smooth functioning of a firm. Lack of liquidity
and profitability can hurdle the growth of firm.
By this study it is observed that liquidity and profitability of Dabur India Ltd. is satisfactory and
is enjoying its continuous growth in this sector. Whereas in HUL Ltd. profitability position is
satisfactory but liquidity position is not upto the mark level. From this study it is concluded that
in Dabur India Ltd. there is significant difference in the liquidity and profitability position of the
company whereas in HUL Ltd. there is no significant difference in the liquidity and profitability
position of the company. (The profitability was strong whereas the liquidity position was not
satisfactory.) HUL must strengthen its short-term solvency position, so that it can meet
obligations timely.
KEYWORDS: Hindustan Unilever Ltd. (Hul), Dabur India, FMCG, Liquidity Analysis,
Profitability Analysis.
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2. International Journal of Social Science & Interdisciplinary Research__________________________________ ISSN 2277-3630
IJSSIR, Vol. 5 (1), JANUARY (2016), pp. 57-63
Online available at indianresearchjournals.com
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