Liquidity Management of Selected Crude Oil and Natural Gas Companies in India
[1]
Amalendu Bhunia, Department of Commerce, University of Kalyani, Kalyani, India.
[2]
Palash Bandyopadhay, Department of Commerce, University of Kalyani, Kalyani, India.
This research work observes the liquidity position and its management of crude oil and natural gas companies in India and at the same time investigates the liquidity management and profitability relationship. The profitability of crude oil and natural gas companies in India has been decreased year after year due to poor utilisation of production capacity, increase in consumption, increase in import value and incurring huge foreign currencies. Poor liquidity management might be a cause because both insufficient liquidity and additional liquidity unswervingly influence profitability. This research is based on secondary data obtained from Centre for Monitoring Indian Economy data for the periods from 1994 to 2013 using descriptive statistics and multiple regressions. Descriptive statistics point out that liquidity position is acceptable in case of ONGCVL, OIL and SETL but their overall liquidity management are not good every year. Multiple regression test results signify that profitability and liquidity management indicators are associated, but questionable in the case of liquidity efficiency indicators, that is, management of inventory, credit policy and payment policy.
Liquidity Management Ratios, Profitability, Crude Oil and Natural Gas Companies, India, Multiple Regressions
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