Journal Press India^®

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Profitability provides better picture of the business performance and is an indicator of financial health of the business. The present paper studies the impact of the independent variables liquidity (current ratio), solvency (debt-equity ratio) and efficiency (fixed assets turnover) on the dependent variable i.e. profitability (return on assets) of public oil and gas sector in India during the period of 5 years i.e. 2015-16 to 2019-20 through regression analysis. The study finds that 85% variation in the profitability was because of the set of predictors. Further, current ratio and fixed assets turnover ratio have a positive impact on profitability, while debt-equity ratio has negative impact on profitability.

Keywords

Efficiency; Liquidity; Oil and gas sector; Profitability; Solvency.

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