Title
Financial performance, disparity, and trend of petrochemicals sector of Saudi Arabia
Abstract
Historical financial performance analysis of the business organization is the parameter of success and failure of operational activities and financial soundness while analysis of a particular industry explains the contribution towards the nation of the economy. In Saudi Arabia, petrochemicals industry is playing a vital role and contributes significantly to the Gross Domestic Product (GDP) of the nation. Some Saudi petrochemicals companies perform well while others performance unexpected or below the standard. There is financial disparity seen in the petrochemicals industry of Saudi Arabia and no study available in Saudi petrochemicals industries context to disclose financial performance, disparity and its trend. So, it is very necessary to analyze the financial reports of the petrochemicals companies to get the historical financial performance disparity and explain its trend. Some leading petrochemicals companies of Saudi Arabia selected for the financial performance study and operational performance, and financial soundness ratios applied to get the financial performance for specific duration. Statistical tools applied to know the significance of variance and trend of financial performances. The study discloses that the Gross profitability of all petrochemicals companies significantly different while the gross profitability also governs the other measures of financial performance. The trend financial performances of petrochemicals companies reveal a decline in operational performance or Gross profitability that governs the decline of other measures of financial performances.
Keywords
ratio analysis, variance analysis, profitability, financial soundness, paying-ability, return on equity, return on investment
JEL classifications
P27
URI
http://jssidoi.org/jesi/article/654
DOI
Pages
809-824
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