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8/6/2019 Oil and Gas Industry FINAL
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MINI PROJECT 1
RATIO ANALYSIS AND INTERPRETATION OFFINANCIAL STATEMENTS
OIL AND GAS SECTOR
ANOOP C
JIJU MATHEWJOJU MATHEW
SHINAZ V S
SOORAJ K J
Presented by
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OIL AND GAS SECTOR
The oil and gas industry has been
instrumental in fuelling the rapid growth of
the Indian economy. It contributes about45 per cent of the total energy
consumption of the country, and is the fifth
largest energy consumer in the world.
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Companies Taken For Analysis From BT
1.OIL AND NATURAL GAS CORP 1
2.INDIAN OIL 6
3.GAIL INDIA 8
4.BPCL 16
5.HPCL 22
6.MANGALORE REFINERIES 24
7.ESSAR OIL 87
8.PETRONET LNG 128
9.CHENNAI PETROLEUM 183
10.GUJARAT STATE PETROLEUM 234
NAME OF COMPANIES RANK
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RATIOS TAKEN FOR CALCULATION
LIQUIDITY RATIO
1.Current Ratio
2.Acid-test Ratio
3.Inventory turnover Ratio(times)
4.Debtors turnover Ratio(times)
SOLVENCY RATIO
1.Debt-Equity Ratio
2.Total Debt-Equity Ratio
3.Proprietary Ratio
4.Interest coverage Ratio(times)
PROFITABILITY RATIOS
1.Gross profit Ratio(%)
2.Net profit Ratio(%)
3.Operating profit Ratio(%)
4.Operating Ratio(%)5.Return on Assets(%)
6.Return on capital employed(%)
7.Return on Networth(%)
EFFICIENCY RATIO
1.Total Assets turnover(times)
2.Fixed Assets turnover(times)
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RATIOS TAKEN FOR COMPARISON
1.Current Ratio
2.Inventory turnover Ratios
3.Debtors turnover Ratios4.Debt-Equity Ratio
5.Interest Cover Ratio
6.ROCE (%)7.RONW (%)
8.Fixed Assets turnover Ratios
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CURRENT RATIO
Current ratio is defined as the ratio of current assetsto current liabilities. It shows the relationship between totalcurrent assets and total current liabilities.
CURRENT RATIO = CURRENT ASSETSCURRENT LIABILITIES
Higher the current ratio ,the greater is the firms abilityto meet short term debts. An unusually current ratio indicates
funds are not being economically used in the firm. Low currentratio indicates that the firm may have some difficulties in payingoff its debts.
A current ratio of 2:1 is considered satisfactory.
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CURRENT RATIO 199903 200003 200103 200203 200303 200403 200503 200603 200703
KEY RATIO 1.47 1.56 1.67 1.37 1.14 1.15 1.22 1.22 1.33
ONGC 1.540501 1.657817 1.603197 1.612968 1.492028 2.117957 1.765594 1.705952 1.627443
INDIAN OIL 1.349274 1.473216 1.670867 1.218868 1.299072 1.267055 1.356914 1.347642 1.274773
GAIL INDIA 0.863338 1.052461 1.117057 1.277677 1.368068 1.172996 1.369257 1.41022 1.70185
BPCL 1.116708 1.21839 1.34784 1.121984 1.038454 0.991841 1.132337 1.413951 1.209023
HPCL 1.192097 1.444354 1.617431 1.275569 1.081844 1.231873 1.359672 1.384052 1.132933
MANGALORE REFINERIES 7.321359 2.944885 0.891193 0.995708 1.337447 1.555915 1.392165 1.515293 1.424887
ESSAR OIL 1.257623 0.904325 0.775022 0.611033 0.565378 0 1.01794 1.046558 1.164403
PETRONET LNG 0 0 0 0.17474 0.074517 3.396424 1.599102 3.305908 1.851938
CHENNAI PETROLEUM 1.16711 1.98191 2.490591 2.129456 1.713457 1.613809 1.606496 1.727379 1.489917
GUJARAT STATE PETROLEUM 2.75199 0.894707 2.158259 2.250783 1.691393 1.856262 1.210064 0.742651 1.007607
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INVENTORY TURNOVER RATIO
Inventory turnover ratio establishes therelationship between cost of goods sold and average
inventory. It shows the rate at which inventories are
converted into sales.
INVENTORY TURNOVER RATIO = NET SALES
INVENTORIES
INVENTORY HOLDING = 365 /PERIOD (INVENTORY TURN OVER RATIO IN TIMES )
A ratio of 6 to 7 times is considered satisfactory.
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INVENTORY TURN OVER
RATIO 199903 200003 200103 200203 200303 200403 200503 200603 200703
KEY RATIO 8.73 12.87 15.5 14.91 21.82 16.3 19.75 18.05 16.37
ONGC 9.420881 12.69182 15.20473 15.77257 21.79992 13.33823 19.38071 15.78932 16.7043
INDIAN OIL 9.943285 7.480363 10.90943 9.702121 7.761564 7.829655 7.138265 7.173564 8.762083
GAIL INDIA 29.42259 19.68844 25.76858 24.30052 27.09862 25.14693 28.25189 29.92481 29.03286
BPCL 13.89008 9.733503 12.57681 12.11173 9.806891 11.16133 9.247718 8.351046 11.14813
HPCL 13.66701 7.119528 11.50639 10.97728 9.501931 9.535531 10.61741 9.128176 11.07933
MANGALORE REFINERIES 11.97322 4.648818 3.985798 6.391879 8.014833 9.566276 9.672613 13.2213 11.34334
ESSAR OIL 15.09714 12.37298 10.89105 16.422 11.43093 0 7.764059 17.4467 0.138673
PETRONET LNG 0 0 0 0 0 0 15.35812 36.93138 26.24184
CHENNAI PETROLEUM 5.75717 5.591384 8.123074 8.006116 6.70593 7.270376 5.853569 6.718059 7.687368
GUJARAT STATE PETROLEUM 0 0 0 0 0 0 4896.636 2494.817 2201.913
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DEBTORS TURNOVER RATIODebtors turnover ratio relates net credit sales to sundry
debtors. It measures how fast debts are collected.
DEBTORS TURNOVER RATIO = (NET CREDIT
SALES) / ( DEBTORS INCLUDING BILLSRECEIVABLE )
AVERAGE COLLECTION PERIOD = 365 /
( DEBTORS TURNOVER RATIO )
A shorter collection period indicates prompt payment of
debtors, while a longer period indicates the
inefficiency of credit collection.
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Debtors turnover Ratios 199903 200003 200103 200203 200303 200403 200503 200603 200703
KEY RATIO 11.89 13.54 12.52 9.86 9.71 9.07 12.9 11.4 14.74
ONGC 13.35733 11.51687 13.47825 10.1766 8.701402 13.84401 12.43308 12.95142 20.5243
INDIAN OIL 24.72948 17.93667 23.74662 25.73458 27.13057 29.46344 24.46991 26.00142 32.13258
GAIL INDIA 19.50304 15.15468 14.78484 13.48888 15.98739 16.57097 16.52965 19.19037 20.28125
BPCL 25.5097 32.41745 41.36684 35.88406 51.23739 58.26262 67.72613 57.40091 63.57736
HPCL 49.73841 49.39491 79.2794 50.74046 56.44215 51.50105 57.53365 51.20717 56.86778
MANGALORE REFINERIES 48.8677 30.2263 18.10429 12.48939 24.03365 14.05811 19.24475 21.68004 23.76388
ESSAR OIL 1.911722 2.177401 1.30978 2.260292 2.984984 0 10.24025 7.848003 2.680276
PETRONET LNG 0 0 0 0 0 16.25792 30.03656 16.62828
CHENNAI PETROLEUM 50.37761 24.79379 28.82986 16.46035 13.2278 16.65292 15.87033 17.87641 24.65739
GUJARAT STATE
PETROLEUM - 859 413.5882 - 39.11276 8.491807 14.68257 15.16452 16.77176
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DEBT-EQUTIY RATIODebt-equity ratio shows the relationship between
total debts and owned capital. It is the ratio of th
amount invested by outsiders to the amount
invested by the share holders.
DEBT-EQUITY RATIO=LONG TERM DEBT
NET WORTH( EQUITY
Ideal or standard ratio is taken to be 1 : 1 for publi
sector and 2 : 1 in private sector.
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DEBT EQUITY RATIO 199903 200003 200103 200203 200303 200403 200503 200603 200703
KEY RATIO 0.37 0.3 0.2 0.17 0.2 0.34 0.44 0.36 0.3
ONGC 0.336105 0.264648 0.147791 0.118122 0.022391 0.281374 0.21168 0.23578 0.243994
INDIAN OIL 0.820142 1.046407 1.292079 1.245506 0.765802 0.528413 0.666564 0.901089 0.776959
GAIL INDIA 0.477035 0.502088 0.494683 0.454472 0.322934 0.28656 0.231553 0.192169 0.117428
BPCL 0.551732 0.741891 1.019304 0.962816 0.692134 0.459803 0.6076 0.916207 1.05409
HPCL 0.276669 0.502712 0.550321 0.537761 0.204516 0.219662 0.258902 0.762824 1.09573
MANGALORE REFINERIES 3.739369 5.599108 6.469341 12.0748 5.239673 3.264991 1.602187 1.380716 0.859086
ESSAR OIL 2.106602 2.373056 2.748664 3.286444 3.670363 ____ 2.126858 2.407073 2.861792
PETRONET LNG 0 0 0 39000 20390 1.390332 1.436558 1.175325 1.08442
CHENNAI PETROLEUM 0.873944 0.873391 0.923113 1.196638 1.525284 1.467924 1.19614 1.204407 0.695341
GUJARAT STATEPETROLEUM 1.182125 0.901967 0.848171 0.199369 0.069009 0.00807 0 0.210722 0.565885
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INTEREST COVERAGE RATIO
The interest coverage ratio relates the fixedinterest charges to the operating profit or the
earnings before interest and tax. It indicates
whether the firm has earned sufficient profit
to pay periodically the interest charges.
INTEREST COVERAGE RATIO = E B I T /
( INTEREST )
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INTEREST COVERAGE RATIO 199903 200003 200103 200203 200303 200403 200503 200603 200703
KEY RATIO 5.15 10.33 22.3 35.64 93.59 115.5 217.18 182.75 228.09
ONGC 6.142088 13.58046 26.76337 45.74391 150.1324 309.5779 539.8688 516.5439 641.6565
INDIAN OIL 4.101504 5.820978 3.465058 4.804844 13.34436 25.56065 14.28762 9.460804 9.513846
GAIL INDIA 18.65629 10.13351 11.84935 11.64179 17.96024 26.21121 29.47371 33.70341 33.08031
BPCL 8.854683 9.295633 7.919522 6.880026 11.00105 31.33773 14.93105 5.743397 8.690261
HPCL 15.16849 11.48311 5.524695 6.912499 20.49889 65.4345 29.15997 6.545429 7.315098
MANGALORE REFINERIES 1.348068 0.512641 0.948745 0.381829 0.507909 3.551298 9.008754 6.179262 7.729455
ESSAR OIL 5.151037 4.18638 4.251845 7.830914 7.95614 2.209877 0 -3.13387 -3.69859
PETRONET LNG 0 0 0 0 0 0 1.496846 4.548069 6.395703
CHENNAI PETROLEUM 4.166146 4.171086 2.903241 2.308244 6.514347 15.63463 8.272045 6.496905 6.947402
GUJARAT STATE PETROLEUM 22.63043 3.544725 3.378519 16.78932 76.04941 58.17236 1921 1749.333 144.841
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RETURN ON CAPITAL
EMPLOYED
The term capital employed refers to long term
funds supplied by the lenders and owners of the
firm. The ratio illustrates how much return is
earned in the form of net profit after taxes out ofthe total capital employed.
RETURN ON CAPITAL EMPLOYED = [ E A T /TOTAL CAPITAL EMPLOYED ] * 100
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RETURN ON NETWORTH ( % )
RETURN ON NETWORTH = [ E A T / NETWORTH ] * 100
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RONW (%) 199903 200003 200103 200203 200303 200403 200503 200603 200703
KEY RATIO 11.61 13.89 18.7 20.13 31.31 23.3 29.49 23.34 20.29
ONGC 11.33941 13.53777 17.25228 20.86677 29.46619 21.35377 27.71466 25.95107 24.75274
INDIAN OIL 18.05241 17.34051 17.09007 18.86281 32.95791 30.63377 18.87004 15.67803 17.90822
GAIL INDIA 25.56895 18.23213 20.55145 22.23247 25.86995 25.12266 22.66769 23.19044 20.94504
BPCL 23.2096 20.1346 20.44301 21.34023 26.2679 28.8048 15.4653 3.170114 17.85042
HPCL 18.06218 18.36862 16.77867 13.36797 23.06101 24.61393 15.43174 4.665546 16.52732
MANGALORE REFINERIES 1.116484 -31.0108 -34.1073 -105.364 -40.2152 31.03437 40.67424 15.53022 19.11752
ESSAR OIL 1.299763 1.852101 0.673421 1.650851 -0.38726 0 0.410426 -3.2197 -2.25332
PETRONET LNG 0 0 0 0 0 0 -3.54268 17.89449 23.77854
CHENNAI PETROLEUM 19.35815 12.43509 10.06688 5.91313 23.37641 24.88814 29.75009 20.96532 21.49833
GUJARAT STATEPETROLEUM 36.59407 20.09284 18.60496 46.28928 47.9947 35.73087 26.25568 23.46349 15.19578
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FIXED ASSETS TURNOVER
RATIO
FIXED ASSETS TURNOVER RATIO = NET
SALES / FIXED ASSETS
The higher the turn over ratio the more efficient is
the management and the utilization of fixedassets while low turnover ratio indicates under
utilization of available resources and presence
of ideal capacity.
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FIXED ASSET TURNOVER
RATIO 199903 200003 200103 200203 200303 200403 200503 200603 200703
KEY RATIO 0.48 0.61 0.7 0.63 0.89 0.81 1.1 1.04 1.03
ONGC 1.997896 3.103291 3.967959 4.090735 6.350675 1.116137 1.610115 1.354269 1.474593
INDIAN OIL 5.191151 5.667444 6.336428 5.401089 5.029515 5.309741 5.954913 6.959812 6.486233
GAIL INDIA 1.242159 1.486538 1.518859 1.577536 1.811407 1.466622 1.733596 1.913638 2.151301
BPCL 6.038055 7.109219 9.179053 6.83541 7.990835 7.912693 8.268058 7.61627 8.793043
HPCL 6.744985 5.299043 7.53166 6.137307 7.563715 7.831427 8.688578 9.71648 10.17192
MANGALORE REFINERIES 1.151132 1.438226 0.497464 0.969113 1.54637 2.388451 4.197737 6.103104 6.65333
ESSAR OIL 0.567657 0.576715 0.433081 0.744006 1.135961 0 6.850102 3.316127 2.324685
PETRONET LNG 0 0 0 0 0 0 1.074806 2.202245 3.351208
CHENNAI PETROLEUM 4.640982 4.347471 5.955117 5.307289 6.732848 3.390839 4.192392 6.60033 8.022099
GUJARAT STATE
PETROLEUM 5.310811 3.834821 6.747601 14.68502 2.306062 2.761225 2.359153 3.045492 5.441846
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THANK YOU.
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