Abstract

This study examines the key financial factors affecting oil and gas firms in emerging markets, focusing on ROCE and Net Profit Ratio. Using data from Indian companies (2013–2023), it applies regression analysis to assess how these metrics influence corporate efficiency and growth. The findings indicate that ROCE plays a crucial role in driving capital efficiency, while NPR reflects profitability dynamics that influence financial sustainability. Other variables, such as Growth Opportunities (GO), Liquidity Ratio (LR), Leverage Ratio (LER), Interest Coverage Ratio (ICR), and Price Earnings Ratio (P/E), exhibit varying degrees of influence on financial performance. The study shows that managing capital and profits is vital in capital-intensive industries. Managing capital and profits is very important in big industries. Future studies could look at other industries and countries to learn more about the oil and gas sector.

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