INVESTMENT EFFICIENCY AND FINANCIAL PERFORMANCE: A CASE OF BADISCHE ANILIN- UND SODA-FABRIK SOCIETAS EUROPAEA (BASF SE)

Abstract

Abstract
This study examines the financial condition and investment efficiency of BASF
SE over the period 2022-2024 based on financial statement analysis. The research relies
on secondary data obtained from the companyʼs official financial reports and applies
quantitative methods, including the calculation of key financial indicators such as
Return on Assets (ROA), Return on Equity (ROE), operating margin, asset turnover,
and free cash flow. The results show various changes in the companyʼs performance.
Profitability indicators, particularly ROA and ROE, demonstrate a gradual positive
growth during the analyzed period, indicating improved profitability and increased
returns for shareholders. However, the operational efficiency showed a negative trend,
as sales volume, operating profit, operating margins, and asset turnover all declined.
This suggests that the companyʼs efficiency in converting assets into revenue and profit
has decreased.
Keywords: Investment efficiency; Financial performance; ROA; ROE; Asset
turnover; Free cash flow; BASF SE.