LIC Housing Finance Key Ratios

The ROE has shown a significant increase from 10.08% in FY2022 to 16.23% in FY2024, driven primarily by improving PAT margins, which reflect stronger profitability.The PAT margin rose steadily from 11.45% to 19.36%, indicating better profit retention relative to sales, which is crucial for sustainability and growth.Although asset turnover showed slight improvements, the main driver behind ROE growth has been profitability rather than efficiency or leverage, with leverage decreasing, suggesting less reliance on debt.

The analysis indicates an improving cash conversion cycle (CCC) from 0.1469 to 0.0713 over the years, suggesting better efficiency in cash management.Receivable days declined initially but then increased, indicating fluctuations in collection efficiency; however, lower days indicate improvements in liquidity management.Inventory days remain at zero across the years, suggesting that inventory turnover is not a significant factor in working capital management for the company.

ROE has increased significantly over the analyzed years, indicating improved equity efficiency, primarily driven by rising PAT margins.ROA shows a strong upward trend, from 0.94% to 1.81%, demonstrating that asset efficiency is also improving, thereby supporting overall financial health.ROCE has shown gradual improvement, suggesting that the company's use of both equity and debt for capital investment is becoming more efficient.