Finance is the life blood for any organization and is always being disregarded in financial decision making since it involves investment and financing in short-term obligation. The telecom industry has contributed to the all round growth of the economy and the there is no gainsaying the contribution of the public sector role. BSNL in the Telecom industry is inevitable as "co-existence" of both private and public is the spirit of Indian political economy. Ratio analysis is a technique of analysis and inter-petition of financial statements. It is the process of establishing and interpreting various ratios for helping in making decision. In view of the above, the present paper is an attempt to analyze the financial performance of BSNL a largest public sector company has been providing telecom services. The study was considered nine years data (2002-03 to 2010-11) for measuring the financial position of the firm. The concluded that the liquidity position was strong thereby reflecting the ability of the companies to pay short term obligations on due dates.