Liquidity Assessment of Pakistan State Oil and Shell Pakistan-A Comparative Study

Authors

  • Saddam Hussain Langau Iqra University Karachi, Pakistan. Author
  • Maqsood Ali Jamali Shaheed Benazir Bhutto University, Shaheed Benazirabad, Pakistan. Author

Keywords:

Liquidity, Pakistan State Oil, Shell Pakistan

Abstract

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.

References

Abdul Rias, Abdul Majid (2003) “Development of liquidity management instruments: challenges and opportunities”, International Conference on Islamic Banking: Risk Management, Regulation and Supervision – 2003.

Abdul Raheman and Mohamed Nasr (2007) “Working Capital Management and Profitability – Case of Pakistani Firms”, International Review of Business Research Papers Vol.3 No.1. March 2007, Pp.279 – 300.

Amarjit Gill, Nahum Biger, Neil Mathur (2010) “The Relationship between Working Capital Management and Profitability: Evidence from the United State”, Business and Economics Journal, Volume 2010: BEJ-10, http://astonjournals.com/bej.

Dr. Ashok Kumar Panigarhi (2013) “Liquidity Management of Indian Cement Companies”, IOSR Journal of Business and Management (ISOR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 14, Issue 5 (Nov-Dec, 20130), PP49-61, www.iosrjournals.org.

Kimondo Charles Njure (2014) “The relationship between liquidity and profitability of nonfinancial companies listed in Nairobi securities exchange”, A research project submitted in partial fulfillment of the requirement for the award of Master of Business Administration degree of the university of Nairobi.

Linda Canina, Steven A. Carvell, (2008) “A Comparison of Static Measures of Liquidity to Integrative Measures of Financial and Operating Liquidity”, Journal of Hospitality Financial Management, 16(1), 35-46.

Owolabi, Obida, (2012) “Liquidity Management and Corporate Profitability”, Business Management Dynamics Vol.2, No.2, Aug 2012, pp.10-25.

Pakistan State Oil, Pakistan state Oil Annual Reports from

http://psopk.com/en/investors/results-reporting/financial-reports

Rizwan Ismail (2016)”Impact of liquidity management on profitability of Pakistani firms: A case of KSE-100 Index”, International journal of innovation and applied studies, ISSN 2028-Journal of Quality and Technology Management 9324 Vol. 14No. 2 Jan, 2016, pp. 304-314, http://www.ijias.issr-journals.org/.

Shell Pakistan, Shell Pakistan Annual Reports from

https://www.shell.com.pk/investors/financial-reporting/annual-reports-publications.html

S.M.Amir Shah, Aisha Sana, (2006) “Impact of Working Capital Management on the Profitability of Oil and Gas Sector of Pakistan”, European Journal of Scientific Research, Vol.15 No.3 (2006), pp. 301-307, http://www.eurojournals.com/ejsr.htm.

T. Afza and M. S. Nazir (2007) “Is it better to be aggressive or conservative in managing working capital?” , , Volume III, Issue II, Dec. 2007 ISSN 1816-2185.

Talat Afza, Mian Sajid Nazir (2008) “Working capital approaches and firm’s returns”, Pakistan Journal of Commerce and Social Sciences, Vol. 1, No. 1 (2008); ISSN 1997 8553.

Downloads

Published

2020-12-31

How to Cite

Liquidity Assessment of Pakistan State Oil and Shell Pakistan-A Comparative Study. (2020). International Research Journal of Management and Social Sciences, 1(1), 15-26. https://irjmss.com/index.php/irjmss/article/view/161

Similar Articles

1-10 of 191

You may also start an advanced similarity search for this article.