Bajaj Finance Key Ratios

The increase in ROE from 17.59% in 2022 to 23.70% in 2023 was primarily driven by significant improvements in PAT margin, which jumped from 22.21% to 27.79%, indicating enhanced profitability.Asset turnover remained relatively stable (around 0.16-0.17), suggesting efficient asset utilization has not dramatically changed, hence not a significant driver of the recent increase in ROE.Leverage slightly increased over the years, reaching a maximum asset-to-equity ratio of 5.01 in 2023, supporting higher ROE mainly through profitability rather than asset efficiency.

Receivable days improved significantly from 13.63 in 2022 to 9.03 in 2025, indicating more efficient collection processes and improved cash flow.Inventory days remain at zero across the years, raising questions about inventory management, which limits a full assessment of operational efficiency.The cash conversion cycle decreased from 13.63 days to 9.03 days over the period, indicating overall operational improvement and better working capital management.

ROE peaked at 23.70% in 2023 but declined gradually to 19.57% in 2025, suggesting potential challenges in sustaining high equity returns despite strong profitability.ROCE showed consistency, remaining above 11.37%, indicating effective capital usage and stability despite fluctuations in ROE, thus reflecting strong performance in leveraging operational capabilities.ROA improved from 3.68% to a peak of 4.74%, indicating better overall asset efficiency, although it also declined to 3.99% by 2025, suggesting a need for attentiveness in asset productivity management.