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Abstract
One of the several indicators of efficient management of working capital is to examine whether adequate liquidity is maintained to meet the short-term obligations as and when they mature. Liquidity or short-term solvency refers to the ability of a business concern to pay off its short-term liabilities. This study makes an attempt to analyze the liquidity position of five major oil and gas companies in India are ONGC, HPCL, IOCL, BPCL and RIL during the period from 2006-07 to 2015-16. To measure the liquidity position of the selected oil and gas companies in India, current ratio, quick ratio, working capital turnover ratio and current assets to total assets ratio have been calculated. The study concludes that none of the companies gave adequate security to the creditors as per the norm. The study gives suggestion to maintain the short-term solvency at optimum, all the companies may try to discharge the current obligations in time and increase the long-term sources for financing their permanent needs.