Asian Paints Key Ratios

The decline in PAT margin from 2021 to 2022 reflects competitive pressures but recovered strongly to 15.38% by 2024, indicating improved profitability.Asset turnover improved overall, peaking in 2023 at 1.686, which suggests better utilization of assets to drive sales; however, a slight dip in 2024 indicates potential inefficiencies.Leverage consistently remained high but fluctuated modestly, suggesting a stable capital structure that supports growth without overwhelming debt reliance.

Inventory days peaked in 2023 at 54.92, indicating slower turnover which may suggest overstocking or reduced demand in that year; reduction in 2024 suggests improved inventory management.Receivable days have progressively increased, particularly in 2023 and 2024, highlighting a potential challenge in collection efficiency which may affect cash flow.The cash conversion cycle turned positive in 2022 and has continued to increase, reflecting deteriorating efficiency in managing working capital despite reducing payable days.

ROE showed resilience, with a notable increase to 32.08% in 2024, driven primarily by improved PAT margin, making equity more efficient in generating returns.ROCE peaked in 2024 at 41.05%, emphasizing strong utilization of both equity and debt, signifying effective capital management.ROA reflects stable performance, but the consistent rise in all return ratios suggests overall improvement in capital allocation and operational efficiency.