ONGC LTD

Project guide: Prof. Madan Mohan Organization guide: Mr. v v g Vijay Kumar. Project done by: gowtham raj k

PERFORMANCE EVALUATION OF ONGC LTD USING RATIO ANALYSIS

Study of oil drilling and exploration i n d u s t r y and ongc Ltd. Financial Analysis

OBJECTIVE
To know how efficiently the company is using its resources. To determine the financial soundness of the firm i.e., liquidity of the firm. To know about causes for changes in financial position from time to time. To evaluate the performance of the unit through ratio analysis.

APPROACH
Collecting data from company. Calculation of various ratios.

Desk Research: This type of research design is done inside the office by referring different published and unpublished data.

TOOLS FOR ANALYSIS: Ratio Analysis Inter firm comparison Intra firm comparison

RATIO ANALYSIS

   

Liquidity Ratios Solvency Ratios Turnover ratios Profitability Ratios

Liquidity ratio:
2009 Current ratio Quick ratio 2.26 2.39 2010 2.38 2.51 2011 2.46 2.29

Solvency Ratio:
2009 Debt-equity ratio 0.0003 2010 0.00005 2011 0

Activity Ratios:
2009 Debtors turnover ratio Net assets turnover ratio Inventory turnover ratio 15.57 0.99 10.51 2010 19.61 0.81 8.01 2011 17.11 1.12 9.54

Profitability ratios
2009 G.P ratio N.P ratio 37.70 25.35 2010 41.16 27.95 2011 36.25 24.50

INTER FIRM COMPARISION

Inter firm comparison involves comparison of different firms financial ratios at the same point of time; involves comparison of firms ratios to those of others in its industry or to industry average

INTRA FIRM COMPARISON

Intra firm comparison refers to the comparison of the different department or divisions belonging to a single firm with a view of ascertaining the strengths and weaknesses of the different departments.

FINDINGS

The company is maintaining liquidity position effectively. The company long term loans are decreasing year by year and hence its turning into a debt free company. Interest which is receivable is more than the interest which is payable.

THANK YOU