Liquidity Assessment of Pakistan State Oil and Shell Pakistan-A Comparative Study
Keywords:
Liquidity, Pakistan State Oil, Shell PakistanAbstract
The main objective of this study is to comparatively analyze the liquidity position of Pakistan State Oil and Shell Pakistan by using liquidity ratio analysis and techniques. The significance of this study shows that it provide clear liquidity picture of both companies as well as identifies role of liquidity in oil market. The secondary data was used in this study to analyze liquidity for the year 2013 to 2017, data has been collected in the form of annual report which was taken from company’s official websites. Both companies are playing an important role in oil industry of Pakistan. Findings of both companies indicates that Pakistan State Oil shows excellences in the liquidity management then Shell Pakistan. The liquidity ratios show that Pakistan State Oil is better than Shell Pakistan for the year 2013 to 2017. Shell Pakistan should bring improvements in liquidity. As liquidity plays key role in the business both companies must put liquid resources like T-bills and marketable securities to increase their liquidity position in the market, similarly both Pakistan State Oil and Shell Pakistan must try to improve net profit as well.
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