Ion Exchange (India) Key Ratios

The declining PAT margin from 10.32% to 7.59% over the four years indicates diminishing profitability, which directly impacts ROE negatively.Asset turnover saw a peak then a drop, suggesting fluctuating efficiency in utilizing assets to generate sales, contributing to the decreasing ROE trend.Leverage remained relatively stable but decreased during the peak, showing that debt was not a significant contributor to the decline in ROE.

Inventory days have remained relatively stable, indicating consistent management of stock levels over time.Receivable days increased notably from 110.72 to 137.93, suggesting a slowdown in collections that could pressure liquidity.Cash conversion cycle improved from negative values to positive, indicating better management of working capital overall, albeit still in need of improvement.

ROE has shown a steady decline, driven primarily by decreasing profitability, which suggests the company is facing challenges in maintaining profit margins.ROCE similarly decreased across the years, indicating challenges in overall capital efficiency, including debt leverage.ROA is also declining, pointing towards an overall decrease in asset efficiency, which is affecting returns to both equity and debt holders.