A financial analysis is the foundation of the company’s economic performance analysis and usually proceeds down to primary fields and results as affectivity, efficiency, production capacity utilization and supplement management. The objective of this article is to assess comparative ascertain of financial analysis of selected public and private sector petroleum industries in  India subsequently to evaluate the business subject progress in an area of activity, liquidity profitability and indebtedness, to reveal strengths and opportunities that the business subject should rely on. Furthermore, it also aims to determine weaknesses and threats that could lead them to difficult situations and based on the results to provide measures to improve the system of financial economic analysis of the business subject. So, an attempt is made by the researcher to study the financial performance of the selected public and private company i.e. Public Sector {Indian Oil Corporation (IOC) and Gas Authority of India limited (GAIL)} and Private Sector { Reliance Oil & Gas Industries limited and Cairn India } companies were selected for financial ratio analysis of study period 2011912 to 2015-16. While analyzing the financial performance of the company it is concluded that the expenses ratios and profitability are given more importance. It was analyzed from the study that public and private sector financial performance of GAIL and CAIRN had the significantly good ratio throughout five years whereas IOC and Reliance were having a comparatively less ratio from GAIL and CAIRN. Statistical analysis obtained from the t value are significant at 5 % significance level and finally it can be postulated that based on the financial performance of selected private and public sector companies under study Null Hypothesis: H₀ = There is no significant difference in financial performance of selected public and private sector petroleum companies under study is rejected and Alternate Hypothesis H₁=There is a significant difference in financial performance of selected public and private sector petroleum companies under study is proved and accepted.

KEYWORDS:  Accounting, Financial Ratio, Liquidity Ratio, Comparative Study, Petroleum Industry.