ASSESSING THE LIQUIDITY HEALTH OF INDIAN OIL CORPORATION LIMITED: A FINANCIAL PERFORMANCE ANALYSIS

Abstract

This study aims to assess the liquidity health of Indian Oil Corporation Ltd. (IOCL), one of India's leading public sector enterprises in the petroleum sector. Liquidity analysis is critical for understanding a company's ability to meet its short-term obligations and maintain financial stability. Using a range of financial ratios, such as the current ratio, quick ratio, and cash ratio, this research evaluates IOCL’s short-term solvency over a five-year period. The analysis further explores trends in working capital management and investigates the relationship between liquidity and overall financial performance. The study utilizes secondary data obtained from annual reports and financial statements of IOCL. Statistical tools and ratio analysis methods are employed to interpret the data meaningfully. The findings reveal key insights into IOCL's financial agility, the efficiency of its short-term asset utilization, and its preparedness to withstand operational uncertainties. This analysis provides valuable implications for investors, policymakers, and corporate decision-makers aiming to ensure sustainable financial practices within large-scale oil and gas enterprises in India.