KG Denim Key Ratios

The persistent decline in PAT margin indicates increasing unprofitability, negatively impacting ROE, which fell dramatically from -11.21% to -495.40% over the four years.Asset turnover has deteriorated significantly, signaling inefficient use of assets as sales revenue shrank; this contributed to the heavy decline in ROE alongside marginal asset growth.Leverage rose sharply, which might appear supportive for ROE, but excessive debt relative to increasingly negative equity signals a distressed financial position.

Inventory days have increased to 521 days, indicating severe inventory management issues, leading to cash flow constraints.Receivable days also skyrocketed to 297, suggesting slowed collection processes that might put additional strain on cash flows.With payable days lengthening to over 915, the company is stretching its liabilities, but this practice is unsustainable given the overall deteriorating cash conversion cycle.

ROE plummeted sharply to -495.40%, reflecting an inability to generate profit from shareholders’ equity amid operational losses.ROCE also turned negative, indicating that debts are not generating adequate returns, deepening the financial distress of the company.ROA of -10.24% confirms that total assets are not being effectively utilized, leading investors to question the company's operational viability.