HCL Tech. Key Ratios

The company's ROE has seen a consistent upward trend, increasing from 22.22% in FY22 to 25.40% in FY25, primarily driven by stable PAT margins, declining slightly yet remaining robust above 14%.Asset turnover improved significantly from 0.99 in FY22 to 1.15 in FY25, indicating better utilization of assets to generate sales, contributing positively to ROE.Leverage has increased marginally, indicating a careful approach in using debt, with total asset to equity ratio rising from 1.42 to 1.48, reinforcing the return on equity without excessive risk exposure.

Inventory days decreased significantly from 0.54 to 0.50, reflecting improved inventory management and quicker turnover, leading to enhanced liquidity.Receivable days increased from 62.09 to 80.08, suggesting a longer collection period, which may impact cash flow negatively, though this requires further monitoring.Payable days showed a dramatic increase from 522.19 to 1086.90, which although indicates extended trade credit usage, it could also signal a deterioration in vendor relations or cash flow management issues.

ROE has grown from 22.22% to 25.40% over the four years, indicating consistent profitability enhancement primarily driven by capital efficiency improvements.ROCE also reflects an upward trend, suggesting that both equity and debt are being utilized effectively, with an increase from 26.63% to 33.54%.ROA improvements from 15.65% to 17.12% indicate effective asset use, showing that overall asset efficiency is a strong driver of returns, although higher receivable days may pose a risk.