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- Title
FINANCIAL ANALYSIS OF INDIAN OIL CORPORATION LIMITED.
- Authors
KUMAR, PAWAN; GUPTA, V. K.; GOYAL, ANIL KUMAR
- Abstract
Oil & Gas is one of the most important sources of energy and is considered the lifeline of any economy. Oil and gas sector constitutes about 40% of primary energy source in India. The oil and gas is one of the six core industries in India and has very significant forward linkage with the entire economy. India is the fifth largest consumer of petroleum in the world and ninth largest crude oil importer. As per the record of Ministry of Petroleum, over the years Indian petroleum industry has played an influential part in triggering the speedy expansion of the country's economy by contributing 15% in the total GDP. So Indian oil and gas sector is of strategic importance and plays a predominantly pivotal role in influencing decisions in all other spheres of the economy. Keeping in the view the above facts and figures, the usefulness of study becomes crucial for providing better understanding to the various stakeholders for their fruitful investments. The present study will contribute to the enhancement of knowledge and ability of various stakeholders such as shareholders, investors, suppliers, creditors; government bodies, etc. analyze and understand the financial statements easily. Financial analysis is the selection, evaluation and interpretation of financial data, along with other pertinent information, to assist in investment and financial decision making. Financial analysis may be used internally to evaluate issues such as profitability, liquidity, solvency, overall performance, operational efficiency and effectiveness, credit policies and externally the potential investment as well as credit worthiness of borrowers etc. Financial analysis is essential for every firm/company to evaluate its performance in all financial aspects. It is the process of identifying the financial strength and weakness of the firm/company and a tool to compare with industry's financial health. One of the most important and powerful tool of financial analysis is ratio analysis. It indicates the effectiveness of long term as well as short-term financial policies of the firm/company. Financial analysis of Indian Oil Corporation Limited and its financial position can be well judged by profitability ratios (Gross profit ratio, Net profit ratio and Return on investment ratio), liquidity ratio (Current ratio and Quick ratio), Solvency ratio (Debt-Equity ratio, Debt to Total Assets Ratio and proprietary ratio) and Investment ratio( Earning per share and Dividend payout ratio). The study is based on secondary data collected from the Annual Reports of Indian Oil Corporation Limited, Annual Reports of the Ministry of Petroleum and other secondary sources.
- Subjects
INDIA; INDIAN Oil Corp. Ltd.; PETROLEUM companies; PETROLEUM industry; INDIA. Ministry of Petroleum; GROSS domestic product; DECISION making in business; FINANCE
- Publication
CLEAR International Journal of Research in Commerce & Management, 2013, Vol 4, Issue 7, p46
- ISSN
2249-4561
- Publication type
Article