The study of analysis is on financial performance of BSNL was under taken on the basis of last 10 years annual report data. The scope of the study consists of secondary data. The present study aims to examine the emerging issues in liquidity position of BSNL for the period from 2011-12 to 2020-21. Financial analysis is a process in which we review and analyze the company’s financial statement to make right financial decision for improving the economic health of an organization. It is the process of determining financial strengths and weakness of the organization by establishing the strategic relationship between the items of balance sheet, profit and loss account and other financial statements. The main aim of such analysis is to determine the efficiency and performance of firm’s management, as shown in the financial records and reports.  The average liquidity position of the BSNL is not very satisfactory. The study will help the major stakeholders of the BSNL to take the necessary steps to improve the liquidity position of the company by taking corrective actions.

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Keywords: Liquidity Ratio, Current Ratio, Quick Assets, Cash and Cash Equivalents, Inventories.