Liquidity Analysis of Selected Oil Refinery Companies in India

The importance of liquidity in the successful operation of a business firm cannot be overstated. Maintaining adequate liquidity in the business to ensure smooth business operation and meeting short-term obligations as they become due is a critical part of managing working capital. The purpose of this paper is to investigate the liquidity position of selected Oil Refinery Companies in India. The data was gathered from the company's annual reports, and the study period ranges from 2016-'17 to 2020-'21. To determine the company's liquidity strength, five liquidity ratios are calculated: Current Ratio, Quick Ratio, Inventory Turnover Ratio, Debtor Turnover Ratio, Days Working Capital. Statistical tools such as the average, standard deviation, and ANOVA test were used to analyse the data.