Measuring Financial Health and Performance of the Oil and Natural Gas Companies in India

The study attempted to investigate the financial health and financial performance of the oil and natural gas companies in India. Financial health was measured using the Altman Z-score model, and financial performance was evaluated through the return on equity (ROE). Conclusions were drawn based on the data collected from five randomly selected oil and natural gas companies listed on India's leading stock exchanges. The findings highlighted financial health and performance distinctions between public and private sector companies, rooted in resource allocation and capacity utilisation variances. Nevertheless, the study established a robust and statistically significant positive correlation between financial health and performance. It was concluded that enhanced financial health corresponds to elevated financial performance and vice versa. Keywords: Financial analysis, listed companies, oil and natural gas sector. JEL Codes: G30, L25, M41.