Liquidity Position of Oil and Gas Industry in India: A Comparative Analysis of Selected Companies.

India's economic growth is closely associated with its energy demand, and the oil and gas industry fulfills this demand. The importance of this industry is such that it influences the decisions of many other sectors of the Indian economy. The volatility of this industry makes it necessary to analyze the liquidity position by assessing the impact of prices on the availability of liquid resources. Liquidity analysis pertains to how quickly the assets of a company can be converted into cash to meet its current obligations so as to ensure financial stability and creditworthiness. Inability of a firm to meet its short-term responsibility is likely to result in bad credit rating as well as a decrease in the goodwill of the firm in the market. Therefore, the present paper analyzes the liquidity position of oil and gas industry by making a comparative study of selected public sector undertakings (PSUs) and private companies in India for the period 2016-17 to 2020-21. The results reveal that Oil India Ltd., ONGC and Vedanta Ltd. (Cairn Oil and Gas) have a better liquidity position than IOCL and Nayara Energy. [ABSTRACT FROM AUTHOR]