Coal India Key Ratios

The increase in PAT margin from 15.79% to 26.23% in the last four years indicates improved profitability, significantly enhancing ROE in 2023 compared to prior years.Asset turnover peaked at 1.004 in 2023, but a decline in subsequent years suggests a decrease in efficiency in asset use, potentially impacting future ROE negatively.Leverage has been decreasing, indicating lower debt reliance which may provide financial stability but could also mean less aggressive growth; this is reflected in the decreasing ROE towards 2025.

Inventory days showed initial improvement, dropping to 13.99 in 2023 but rose back to 19.92 by 2025, indicating potential issues in managing stock effectively.Receivable days decreased significantly to 22.44 in 2023, suggesting improved collection efficiency, but fluctuations thereafter indicate instability in receivables management.Negative payable days in 2024 and 2025 raise concerns about liquidity and financial health; the cash conversion cycle exhibits volatility, signaling management struggles with working capital.

ROE peaked at 61.01% in 2023 due to strong profitability, significantly influenced by the improved PAT margin, but shows signs of retraction by 2025.ROCE also increased sharply in 2023, indicating robust capital efficiency, but similarly declined thereafter, suggesting potential challenges in sustaining returns on overall capital employed.ROA trends suggest overall asset efficiency improved, yet the declining trajectory in all three return metrics signals a need for strategic adjustments to sustain investor confidence.