In the present global scenario, oil prices are behaving extremely unpredictably and there is a lot of volatility in the petroleum industry. This necessitates efficient management of liquidity in the petroleum companies, as the petroleum companies play an extremely significant role in the economy. As the prices of the fuel, directly or indirectly, affect the lives of everyone and have a critical impact on inflation, it is all the more important that the liquidity management of the petroleum companies is cost-efficient. One of the important tasks of a financial manager is to select an assortment of appropriate sources for a firm to meet its financial requirements. The short-term financial strength relates to the technical solvency of a business in the near future. In the present study, the management of the liquidity of the short-term financial strength of the selected petroleum companies has been analysed by employing ratios.  For this purpose, three leading companies have been selected. The study is based on the annual reports, accounts and other publications of the selected petroleum refining companies in India. The study period is nine years, from 2009-10 to 2017-18.

KEYWORDS:  Ratio, Quick Assets, Long-term and Short-term Financial Strength.