Fast Moving Consumer Goods sector in India has been playing an important role in developing its nation not only by providing a large numbers of consumer goods necessary for carrying on daily activities of the general people and enrich their standard of living but also by creating a large amount of employment opportunities in India. The profile of Indian consumer have been notable changes in terms of income as well as the consumption pattern in the post liberalizations period.As a result the

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... anies belonging to the Fast Moving Consumer sector have also changed their business strategy and policy to cope up with different challenges arise from external and internal environment due to liberalization measure taking by the government .It leads to notable changes in the profitability trend in Indian fast moving consumers goods companies. In this context, present paper examines the relationship between liquidity and overall profitability of fast moving consumers firm. Also attempts to understand the performance efficiency of the management during the study period of 2009-2014 and examined the significance of relationship between liquidity and financial performance indicator of fast moving consumer goods companies in India. In this context Pearson's simple correlation coefficient and t test were used in this study. The study revealed a statistically highly significant association between inventory turnover ratio and return on capital employed where as no significant relationships were found between cash turnover ratio, debtor turnover ratio and return on capital employed. The study has suggested a considerable amount of attention needed to cash management and debtor management performance result. Key Word: Debtor Turnover Ratio, Cash Turnover Ratio Fast Moving Consumer Goods, Inventory Turnover Ratio, Return On Capital Employed. Introduction The paradigm shift of the Indian economy to a market-dominated open economy system in 1991 from a state-dominated subsidized financial system, consequent upon the world wide wave in favour of globalization and liberalization gaining motion in the last quarter of the twentieth century and signing of the Trade Related Intellectual Property Rights System (TRIPS) agreement in 1995 are watershed events for the Indian industries in the recent time. Indian FMCG sector is not a silent spectator to witness these path-breaking events. Due to changes brought about by these two mega events, a large number of companies in India which had grown exponentially over the years in a virtually non-competitive milieu have started facing increasingly stern competition in the domestic front as well as across the border. As a result, there has been a noticeable change in the profitability trends in the Indian FMCG companies .These companies have been forced to reorient their strategies for meeting the challenges thrown before them and for managing business operation efficiently in the post-liberalization era. Some of them have fruitfully adapted themselves to the new state of affairs while others have become completely unsuccessful. Financial statement analysis helps to pinpoint the strength and weakness of the company more precisely, to identify the factors responsible for such strength and weakness and also to measure the contribution made by such factors in this regards. In this study three factors such as Cash Turnover Ratio were considered as responsible factors for overall profitability of the firm.