DETERMINANTS OF FINANCIAL PERFORMANCE IN INDIAN FINANCIAL SERVICES COMPANIES: AN EMPIRICAL STUDY

Abstract

The financial services sector plays a pivotal role in the Indian economy by enabling capital allocation, managing risks, and driving economic growth. This study investigates the key determinants of financial performance in Indian financial services companies by analyzing critical financial indicators, including profitability, liquidity, leverage, efficiency, and solvency. Using a sample of seven leading financial services firms from 2020 to 2024, the research employs descriptive statistics and one-way ANOVA to assess variations and trends in financial performance. The study evaluates financial ratios such as Gross Profit Margin, Net Profit Margin, Return on Equity, Return on Assets, Debt-to-Equity Ratio, and others to determine their impact on firm stability and growth. The findings offer empirical insights into the financial health of these firms, helping investors, policymakers, and corporate managers make informed strategic decisions. This study advances knowledge of sustainable financial management in a cutthroat corporate climate by identifying important aspects determining financial performance.