Majestic Auto Key Ratios

The significant drop in PAT margin from 202203 to 202303 constrained ROE, indicating a profitability issue that reduced retained earnings.An impressive recovery in PAT margin in 202403 shows potential for stronger returns, though the following year saw another decline, highlighting ongoing volatility in profit margins.Asset turnover showed gradual improvement until 202503, positively influencing ROE during 202403, while leverage remained stable, slightly enhancing overall financial stability.

Inventory days have sharply declined, indicating improvement in inventory management which is beneficial for liquidity and operational efficiency.Receivable days have decreased significantly, reflecting enhanced collection efficiency and faster cash flow, boosting operational liquidity.Conversely, decreasing payable days indicate a potential strain on cash flow management as suppliers are paid quicker, which may affect liquidity if not managed carefully.

The peak ROE in 202403 was driven primarily by a recovering PAT margin alongside heightened ROCE, indicating effective capital utilization during that year.ROCE's performance was bolstered by strong profit relative to both equity and debt, demonstrating overall capital efficiency despite subsequent declines in the following years.The inconsistency in ROA reflects challenges in asset efficiency, particularly in the last two years, highlighting the need for improved asset management strategies.