Short-Term Liquidity Dynamics: A Study of ITC Ltd and Dabur India Ltd

Fast-Moving Consumer Goods (FMCG) companies produce non-durable goods that are sold quickly at relatively low cost, such as beverages, packaged goods and cleaning products. ITC Ltd and Dabur India Limited have emerged as major players in the FMCG sector, each with its own financial context and strategic vision. This study presents a human perspective on their liquidity position (working capital-based liquidity measure) and a comparative analysis of their financial trajectory. The research is based on secondary data, i.e., annual reports of selected companies. This study analyzes the comparative short-term liquidity position of ITC Ltd and Dabur India Limited for the period from 2020 to 2025. For the convenience of the research, current ratio and quick ratio or acid test ratio have been adopted as effective capital-based liquidity measurement tools to assess the level of liquidity situation of the selected companies. It also Identify which companies have good liquidity situations and which are lagging behind, and mention possible reasons for this.