A Study on Financial Performance of BSNL by Using Ratios

Abstract

The main objective of the study was to analyze the financial position of the company. It is the process of identifying the financial strength and weakness of the firm by properly establishing relationship between the item of balance sheet and profit and loss account. The details regarding the history and finance details of the bank were collected through discussion with the company officers; and the secondary data were based on the annual reports of 2012–2017. The various tools used for the study were ratio analysis, funds flow statement and cash flow statement and tables were used for better understanding. Through ratio analysis, we could understand the profitability, liquidity, leverage, and turnover position of the company. The bank is following high debt equity and also the bank followed the credit enjoyed from its supplier also for nearly 1 year period of time. On the other hand, cash turnover is also not sufficient for the healthy business. The study recommends to reducing the debt capital and providing security to the creditor and to increase the sales to reduce the loss of the bank.