Indo Rama Synth Key Ratios

The company saw a decline in its ROE from 57.65% in 2022 to -43.25% in 2024, largely due to a negative PAT margin starting in 2023, indicating profitability issues.Asset turnover peaked at 2.45 in 2022, highlighting efficient use of assets; however, it has since decreased, impacting revenue generation.Leverage increased significantly to 5.51 in 2024, which combined with poor profitability leads to elevated financial risk for investors.

Inventory days decreased to a low of 40.99 in 2022, but then rose again, indicating potential issues in inventory management that could tie up capital.Receivable days improved substantially to 12.49 in 2022 but remained relatively stable afterward, indicating reasonable collection efforts despite recent difficulties.The cash conversion cycle remained negative throughout the period, suggesting effective management of payables; however, an increase in payable days could indicate vendor-related pressures.

ROE shows severe fluctuation, particularly negative values in 2023 and 2024 driven by poor profitability, indicating significant concerns for equity investors.ROCE and ROA similarly reflect declining performance, emphasizing that both operational efficiency and return on capital have deteriorated, which is worrisome for lenders and equity holders alike.The consistent decline across all return metrics underscores that both equity and debt sides are not generating adequate returns for invested capital.