Financial Performance Analysis of Selected Public Sector Enterprises

Abstract

Public sector enterprises (PSEs) occupy an important position in infrastructure, energy, manufacturing and strategic industries, making their financial sustainability relevant to both public policy and corporate management. This methodology paper develops a structured framework for analysing the financial performance of selected Indian Central Public Sector Enterprises (CPSEs). The proposed study uses audited secondary data from annual reports and Public Enterprises Survey publications and evaluates five years of performance through profitability, liquidity, solvency, efficiency and growth indicators. Ratio analysis is combined with trend analysis, descriptive statistics, coefficient of variation and comparative ranking. Financial-ratio research demonstrates that accounting ratios provide useful signals about profitability, liquidity and financial health. Research on state ownership further shows that profitability, leverage and operating efficiency are important dimensions for evaluating public enterprises. Indian evidence indicates that ownership structure, partial privatization, disinvestment and performance contracts can materially affect the outcomes of state-owned enterprises. The methodology proposes a purposive sample of large non-financial CPSEs such as ONGC, NTPC, BHEL, SAIL and GAIL for FY2010-11 to FY2014-15. Because raw company data were not supplied with the request, the Results section presents an illustrative interpretation framework rather than fabricated company figures. The study offers a replicable approach for comparing financial strength, identifying weak dimensions and supporting evidence-based evaluation of public sector performance.