ITC Key Ratios

The PAT margin has shown a consistent improvement over the four years, signifying enhanced profitability which has positively influenced ROE.Asset turnover peaked in 2023 but has slightly declined thereafter, indicating a relatively stable efficiency in using assets for generating sales despite a minor drop.Leverage remained stable, thus not significantly contributing to fluctuations in ROE; the predominant driver for ROE trends appears to be the improvement in profitability.

Inventory days decreased significantly up to 2023, showing improved inventory management, but have since risen, suggesting potential inefficiencies or stock buildup, impacting working capital.Receivable days have trended upwards, indicating a slowing collection process which can strain cash flows if it continues unchecked.Payable days reflect improved management initially, but the increase in recent years suggests potential challenges in supplier relations or cash flow management.

ROE saw a peak in 2023 at 30.0676, driven primarily by higher PAT margins, reflecting strong profitability.ROCE trends indicate robust capital efficiency, maintaining high returns in relation to both equity and debt, highlighting effective utilization of all capital.ROA remains strong but slightly reduced recently, indicating that while assets are still generating good returns, there may be diminishing efficiency over time.