Cash flow analysis is thought to be more effective in determining petroleum companies effectiveness and competitiveness in the market because it is a more dynamic examination of actual return on assets and equity. Additionally, this unique use of cash flow analysis is applied to the concept of emerging markets and the proposal that cash flow analysis is a better measure of performance and competitiveness for firms that are competing in emerging markets. With the introduction of the cash flow statement it became an integral part of financial reporting. A need arose to develop ratios for the effective evaluation of cash flow information. This article investigates cash flow ratios suggested by various researchers and suggests a list of ratios with the potential to predict financial performance. Income statement and balance sheet ratios are not enough to measure liquidity. An entity can have positive liquidity ratios and increasing profits, yet have serious cash flow problems. Ratios developed from the cash flow statement should supplement traditional accrual-based ratios to provide additional information on the financial strengths and weaknesses of an entity. With the introduction of the cash flow statement it became an integral part of financial reporting. This research paper focuses an attempt to make an analytical study for measuring the financial performance through control of cash flow and ratio analysis of selected petroleum companies. In this study researcher have tried to show how and to what extent, the control of cash flow can supplement additional financial information to satisfy all the stakeholders of the organization.