IDEAS home Printed from https://ideas.repec.org/a/ssi/jouesi/v8y2020i1p809-824.html
   My bibliography  Save this article

Financial performance, disparity, and trend of petrochemicals sector of Saudi Arabia

Author

Listed:
  • Anis Ali

    (Prince Sattam Bin Abdulaziz University, 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.

Suggested Citation

  • Anis Ali, 2020. "Financial performance, disparity, and trend of petrochemicals sector of Saudi Arabia," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(1), pages 809-824, September.
    • Handle: RePEc:ssi:jouesi:v:8:y:2020:i:1:p:809-824
    DOI: 10.9770/jesi.2020.8.1(54)
    as

    Download full text from publisher

    File URL: https://jssidoi.org/jesi/uploads/articles/29/Ali_Financial_performance_disparity_and_trend_of_petrochemicals_sector_of_Saudi_Arabia.pdf
    Download Restriction: no
    File URL: https://jssidoi.org/jesi/article/654
    Download Restriction: no
    File URL: https://libkey.io/10.9770/jesi.2020.8.1(54)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Walid Mensi, 2019. "Global financial crisis and co-movements between oil prices and sector stock markets in Saudi Arabia: A VaR based wavelet," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 19(1), pages 24-38, March.
    2. H. Esmaeili Shahmirzadi, 2017. "Selecting an Appropriate Strategy to Increase Petrochemical Product Sales (Case Study: Iranian Petrochemical Industry)," Business and Management Studies, Redfame publishing, vol. 3(1), pages 42-54, March.
    3. Sergejs Hilkevics & Valentina Semakina, 2019. "The classification and comparison of business ratios analysis methods," Post-Print hal-02115236, HAL.
    4. repec:ssi:jouesi:v:1:y:2019:i:1:p:48-57 is not listed on IDEAS
    5. Sergejs Hilkevics & Valentina Semakina, 2019. "The classification and comparison of business ratios analysis methods," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 1(1), pages 48-57, March.
    6. Zafar Ahmad Sultan & Mohammad Imdadul Haque, 2018. "Oil Exports and Economic Growth: An Empirical Evidence from Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 8(5), pages 281-287.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Natalya Pavlovna Vinogradova & Alexander Nikolaevich Popov, 2019. "Methodological basis of economic decision-making," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(4), pages 1798-1806, June.
    2. Natalia A. Prodanova & Natalia V. Savina & Vadim A. Dikikh & Yulianna I. Enina & Olga Yurievna Voronkova & Vladimir V. Nosov & Vladimir V. Nosov, 2020. "Features of the coherent presentation of information in order to prepare integrated corporate reporting," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(3), pages 2227-2281, March.
    3. Aksana A. Turgaeva & Liudmila V. Kashirskaya & Yulia A. Zurnadzhyants & Olga A. Latysheva & Irina V. Pustokhina & Andrei V. Sevbitov, 2020. "Assessment of the financial security of insurance companies in the organization of internal control," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(3), pages 2243-2254, March.
    4. Olga Lingaitienė & Juozas Merkevičius & Vida Davidavičienė, 2021. "The Model of Vehicle and Route Selection for Energy Saving," Sustainability, MDPI, vol. 13(8), pages 1-20, April.
    5. Aleksandr M. Batkovskiy & Aleksandr V. Leonov & Aleksey Yu. Pronin & Elena G. Semenova & Alena V. Fomina & Viktor M. Balashov, 2019. "Sustainable development of Industry 4.0: the case of high-tech products system design," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(4), pages 1823-1838, June.
    6. Katarína Havierniková & Marcel Kordoš, 2019. "Selected risks perceived by SMEs related to sustainable entrepreneurship in case of engagement into cluster cooperation," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(4), pages 1680-1693, June.
    7. Jolanta Sabaitytė & Vida Davidavičienė & Gerard Frederick Van Kleef, 2020. "The Peculiarities of Low-Cost Carrier Development in Europe," Energies, MDPI, vol. 13(3), pages 1-19, February.
    8. Liudmila V. Kashirskaya & Alexey A. Sitnov & Dilmurod Аsh. Davlatzoda & Tatiana M. Vorozheykina, 2020. "Knowledge audit as a key tool for business research in the information society," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(3), pages 2299-2319, March.
    9. Natalia A. Prodanova & Natalia V. Savina & Zhanna Kevorkova & Lyudmila N. Korshunova & Nadezhda Bochkareva, 2019. "Organizational and methodological support of corporate self-assessment procedure as a basis for sustainable business development," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(2), pages 1136-1148, December.
    10. Nazym Bozgulova & Rimma Parmanova & Maira Abenova & Tatyana Ivanyuk & Vassiliy Aryshev, 2019. "Calculation methods for cost management in the construction industry," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(2), pages 1450-1461, December.
    11. Daiva Tamulevičienė & Armenia Androniceanu & Armenia Androniceanu, 2020. "Selection of the indicators to measure an enterprise’s value and its changes in the controlling system for medium-sized enterprises," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(3), pages 1440-1458, March.
    12. Alqahtani, Faisal & Hamdi, Besma & Hammoudeh, Shawkat, 2021. "The effects of global factors on the Saudi Arabia equity market by firm size: Implications for risk management based on quantile analysis and frequency domain causality," Journal of Multinational Financial Management, Elsevier, vol. 61(C).
    13. Martina Pilloni & József Kádár & Tareq Abu Hamed, 2022. "The Impact of COVID-19 on Energy Start-Up Companies: The Use of Global Financial Crisis (GFC) as a Lesson for Future Recovery," Energies, MDPI, vol. 15(10), pages 1-15, May.
    14. Ahmed A. Elamer & Bassam A. Elbialy & Kholoud A. Alsaab & Mohamed A. Khashan, 2022. "The Impact of COVID-19 on the Relationship between Non-Renewable Energy and Saudi Stock Market Sectors Using Wavelet Coherence Approach and Neural Networks," Sustainability, MDPI, vol. 14(21), pages 1-24, November.
    15. Md Fouad Bin Amin & Mohd Ziaur Rehman, 2022. "Asymmetric Linkages of Oil Prices, Money Supply, and TASI on Sectoral Stock Prices in Saudi Arabia: A Non-Linear ARDL Approach," SAGE Open, , vol. 12(1), pages 21582440211, January.
    16. Mensi, Walid & Ur Rehman, Mobeen & Maitra, Debasish & Hamed Al-Yahyaee, Khamis & Sensoy, Ahmet, 2020. "Does bitcoin co-move and share risk with Sukuk and world and regional Islamic stock markets? Evidence using a time-frequency approach," Research in International Business and Finance, Elsevier, vol. 53(C).
    17. Charis Vlados & Dimos Chatzinikolaou, 2019. "Towards a Restructuration of the Conventional SWOT Analysis," Business and Management Studies, Redfame publishing, vol. 5(2), pages 76-84, June.
    18. Emrah Ismail Cevik & Sel Dibooglu & Atif Awad Abdallah & Eisa Abdulrahman Al-Eisa, 2021. "Oil prices, stock market returns, and volatility spillovers: evidence from Saudi Arabia," International Economics and Economic Policy, Springer, vol. 18(1), pages 157-175, February.
    19. Iovino Felicetta, 2023. "Variability of Income Flows of Tourism Companies during a Nine-Year Period," Journal of Economic Statistics, Anser Press, vol. 1(2), pages 57-67, August.
    20. Basel Maraqa & Murad Bein, 2020. "Dynamic Interrelationship and Volatility Spillover among Sustainability Stock Markets, Major European Conventional Indices, and International Crude Oil," Sustainability, MDPI, vol. 12(9), pages 1-14, May.

    More about this item

    Keywords

    ratio analysis; variance analysis; profitability; financial soundness; paying-ability; return on equity; return on investment;
    All these keywords.

    JEL classification:

    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssi:jouesi:v:8:y:2020:i:1:p:809-824. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuela Tvaronaviciene (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.