JSW Steel Key Ratios

The dramatic decline in ROE from 37.25% in 2022 to 4.47% in 2025 is primarily driven by a significant fall in PAT margin, indicating challenges in profitability despite stable leverage ratios.Asset turnover has gradually decreased, suggesting inefficiencies in using assets to generate sales, which further exacerbates the declining ROE scenario.Leverage remained relatively stable, indicating that external financing has not contributed to increased returns, as the declines in ROE are predominantly due to profitability and efficiency issues.

Inventory days have risen significantly from 59.89 to 78.67, indicating slower inventory turnover and potential overstocking issues that could hurt liquidity.Receivable days have increased, reaching 17.26, which points to longer collection periods and may affect cash flows negatively.The Cash Conversion Cycle (CCC) reflects a deteriorating trend with an increase from 9.33 to 39.69 days, signaling inefficiencies in working capital management that may constrain operational flexibility.

ROE's significant drop is mirrored in the corresponding decline in ROCE and ROA, indicating that both equity and capital efficiency have weakened substantially over the period.ROCE and ROA ratios reveal that returns on total capital and asset efficiency show a similar declining trend, mostly influenced by shrinking net profits rather than asset base growth.With all return metrics declining, the overall returns suggest that the company is struggling to generate value for shareholders and stakeholders alike as it contends with profitability and asset management challenges.