Adani Ports &Special Key Ratios

The PAT margin has fluctuated, peaking at 39.80% in FY2021, indicating strong profitability, but has declined to 25.46% in FY2023 before rebounding to 30.36% in FY2024, which reflects better cost management and pricing power recently.Asset turnover has shown a modest improvement from 0.185 in FY2021 to 0.232 in FY2024, indicating that the company is becoming slightly more efficient in utilizing its assets to generate sales, boosting the overall ROE.Leverage has decreased from 2.425 in FY2021 to 2.339 in FY2024, suggesting a conservative approach towards debt which can enhance equity stability but may also limit growth potential in a capital-intensive industry.

Inventory days have sharply decreased from 18.6 days in FY2021 to 6.08 days in FY2024, showing significant improvements in stock management and turnover rates, hence reducing holding costs.Receivable days have also decreased from 89.11 days in FY2021 to 52.09 days in FY2024, indicating improved collection processes and a stronger liquidity position.The cash conversion cycle has improved remarkably from 107.73 days in FY2021 to 58.17 days in FY2024, signaling more efficient management of operating assets and a tighter working capital cycle.

ROE has experienced a general decline from 18.06% in FY2021 to 12.90% in FY2023, before recovering to 16.51% in FY2024, indicating a volatile equity performance but stabilization recently.ROCE has similarly declined to a low of 10.80% in FY2023 and rebounded to 13.30% in FY2024, suggesting capital efficiency issues that are being addressed, but overall return on capital remains low.ROA has been relatively stable, finishing at 7.06% in FY2024, which showcases the company's ability to maintain asset utilization efficiency amidst fluctuating equity returns.