RATIO ANALYSIS

BY-
MOHAMMAD
DANISH
MBA-3RD (B)
 INTRODUCTION
Ratios are quantitative relationship between two
or more variables taken from financial statement.

Ratio Analysisis a form of Financial

StatementAnalysisthat is used to obtain a quick
indication of a firm's financial performance in
several key areas.
 TYPES OF RATIOS
4 CATEGORIES OF RATIOS-

Liquidity Ratio

Solvency Ratio

Profitability Ratio

Turnover Ratio
 COMPANY PROFILE
o Company Name Oil and Natural Gas Corporation
Ltd.

o Establishment Year- 14th August,1956

o Headquarter Dehradun(Tel Bhavan)

o Chairman and Managing Director- D K Sarraf

o Type of Company- Public Sector Undertaking

 RESEARCH METHODOLOGY
There are two main types of sources of data collection :

1)Primary Data

2)Secondary Data

SOURCES OF SECONDARY DATA-

Annual report of ONGC Ltd.
Monthly publication of ONGC i.e. corporation finance
ONGC LTD website: www.ongcindia.com
Library of ONGC at KDMIPE
OBJECTIVE
 FINDINGS & CONCLUSION

1) The corporation operates very efficiently as it can be seen

from the various ratios as calculated above like Net profit
ratio, Return on equity , Book value per share and soon.

2) ONGC has got a very sound working capital management

particular cash and debtors.

3) The liquidity position of the corporation is very safe which

can be easily judged from the interpretation of liquidity ratios
like current ratio, quick ratio and absolute ratio. This means
that ONGC is in a quite credit worthy position.
CONT
4) ONGC has a sound capital and asset base which
also indicates that it is in a position to clear all its
current liabilities. Infect it ha become a debt free
company.

5) ONGC has no short term securities during the

past five years.
 RECOMMENDATIONS
The unit can obtain contingent commitment from
the buyers as part of sales term.
Increase competitiveness in International market.
The unit can outsource some of its non-core
activities to specialize outside agencies.