Assessing Profitability, financial efficiency and Solvency: Financial Statement Analysis with special reference to ONGC

Abstract

Analysis and interpretation of financial statements is another name for financial statement analysis. It creates significant connections between different components of the two financial statements, particularly the position and income statements. It assesses one’s financial stability and flaws in the company. Financial statement analysis is useful for gauging an organization’s profitability, liquidity, efficiency, and solvency. The examination of financial statements is of interest to all parties involved. Understanding and diagnosing financial statement data, as well as assessing the business’s profitability and financial strengths, are the primary goals of financial statement analysis. The objective of this paper is to analyse the financial stability of the company and the study covered 3 years from 2023 to 2025 including secondary data. Researcher has used comparative statement and Common size statement method of financial analysis. For the financial analysis, the researcher utilized a paired t-test using two samples for the mean in which he has taken two variables net profit and net worth. The company’s overall financial performance is steady, with good profitability and moderate solvency, even though continued debt and asset utilization optimization will further improve financial stability and long-term sustainability.