IMPACT OF DETERMINANTS ON RETURN ON EQUITY (ROE) ON NIFTY FAST MOVING CONSUMER GOODS (FMCG) INDEX CONSTITUENTS

This paper examines the impact of various key determinants on return on equity (ROE) on Nifty fast moving consumer goods (FMCG) index constituents. The determinants that are taken for study are fixed assets turnover ratio, total assets turnover ratio, return on assets (ROA), debt-equity ratio, interest coverage ratio, inventory turnover ratio, tax efficiency ratio and net profit margin. For the purpose of the study Nifty FMCG index constituents has been taken into consideration which comprises of 15 companies under it. To measure the impact of these variables or determinants secondary data has been analyzed quantitatively using correlation and regression analysis in order to know about the association of variables with ROE, taking it as a dependent variable and the determinants as independent variable. The results obtained from the analysis emphasize the strong connection between return on assets (ROA) and return on equity (ROE) as well as between total assets turnover ratio and return on equity (ROE).