LIQUIDITY MANAGEMENT IN OIL COMPANIES AT INDIAN OIL CORPORATION LTD

Abstract

Liquidity management is specifically critical to the financial and operational performance of energy firms, particularly in a capital-intensive and unpredictable industry such as petroleum. This investigation pertains to Indian Oil Corporation Limited (IOCL), the largest public sector oil company in India, which is responsible for the distribution, sale, and refining of petroleum products. The analysis demonstrates how IOCL manages its short-term assets and obligations by identifying the optimal balance between profitability and solvency. In light of factors such as regulatory regulations, high working capital requirements, and volatile crude oil prices, the current ratio, fast ratio, and cash flow analysis are critical metrics for evaluating a company's ability to meet its immediate obligations.