MEASURING THE FINANCIAL PERFORMANCE OF BHARAT SANCHAR NIGAM LTD. IN BHOPAL USING RATIO ANALYSIS

Abstract

This study use ratio analysis to evaluate Bharat Sanchar Nigam Ltd.'s (BSNL) financial standing in Bhopal. Financial health was assessed by looking at liquidity, profitability, and solvency measures for 2018, 2019, and 2020. The ratio research showed that BSNL has serious money problems since the company's liquidity, profitability, and solvency ratios are all poor. A fall in the company's current ratio and quick ratio over time indicates that meeting short-term commitments may be difficult for BSNL. The company has been losing money and failing to generate positive returns for its investors since its net profit margin ratio, return on assets ratio, and return on equity ratio are all below zero. The increasing debt-to-equity ratio, debt-to-total-assets ratio, and interest coverage ratio all indicate that the company is more dependent on debt financing rather than equity funding. This indicates that the corporation may have trouble generating enough revenue to meet its interest expenditures. Based on the results of this study, BSNL should make certain strategic adjustments to boost its bottom line. The recommended measures, such as better working capital management, debt reduction, revenue growth, and customer service improvement, may aid the firm in overcoming its financial difficulties. BSNL's overall financial health is in a vulnerable state, and the corporation has to take immediate measures to strengthen its bottom line.