JIO Financial Serv. Key Ratios

JIO's PAT margin has significantly improved, especially in 2024, reflecting rising profitability which is the primary driver of the increased ROE.Asset turnover remains low, highlighting inefficiencies in asset utilization, while leverage has remained relatively stable, suggesting less impact on ROE from debt levels.Overall, the drastic increase in ROE from 5.73% in 2023 to 129.97% in 2024 is primarily driven by enhanced profitability rather than efficiency or leverage.

JIO's inventory days dropped drastically to zero in the last two years, indicating either no inventory or potential inefficiencies in inventory management.Receivable days spiked to an unusually high 93.21 in 2023, but normalized in 2024, indicating initial issues in credit collection that have since improved.The cash conversion cycle exhibited significant fluctuations, which implies instability in working capital management; the recent reduction suggests some recovery in efficiency.

ROE surged in 2024 to 129.97%, primarily due to the substantial improvement in net profitability, marking an excellent turnaround.ROCE and ROA followed similar trends, with ROCE reaching 158.72% in 2024; indicating strong capital efficiency reflecting higher returns on both equity and debt.The dominant driver across the return ratios is the profitability enhancement rather than asset utilization or leverage, suggesting a strong operational turnaround.