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Entrepreneurship and Sustainability Issues Open access
Journal Impact FactorTM (2023) 1.2 Q4
Journal Citation IndicatorTM (2023) 0.33 Q3
Received: 2020-02-25  |  Accepted: 2020-06-30  |  Published: 2020-09-30

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


This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Ali, Anis
Prince Sattam Bin Abdulaziz University, Al-Kharj, Saudi Arabia https://psau.edu.sa
Articles by this author in: CrossRef |  Google Scholar

Journal title

Entrepreneurship and Sustainability Issues

Volume

8


Number

1


Issue date

September 2020


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

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References