Max Financial Key Ratios

The increase in ROE from 8.75% in 2022 to 12.13% in 2023 was primarily driven by a significant improvement in PAT margin, reflecting higher profitability amidst stable sales.However, the subsequent decline in ROE in 2024 and 2025, despite a slightly improved PAT margin, underscores reduced leverage and efficiency as asset turnover dropped.The leverage increased sharply from 29.66 in 2022 to 40.07 in 2024, suggesting a reliance on debt; however, the decline in ROE indicates that this increase did not proportionately enhance profitability.

The data shows that inventory days are consistently reported as zero, indicating either a potential inventory management problem or lack of data provision, which affects interpretation directly.Receivable days peaked in 2023 and then showed some improvement in 2024 but slightly increased again in 2025, aligning with a deteriorating cash conversion cycle, highlighting possible inefficiencies in collection processes.The cash conversion cycle has fluctuated, ending at 7.85 days in 2025; overall efficiency appears stagnant, which if unchecked, could lead to liquidity issues.

Despite fluctuations in return ratios, ROE remained consistently higher than ROA and ROCE, indicating that equity provided stronger returns compared to debt and total assets.The peak ROE in 2023 at 12.13% suggests efficient equity utilization, while the subsequent decrease indicates a need to reassess strategic financial policies as ROCE and ROA are declining more dramatically.Overall, the persistent drop in ROA suggests declining asset efficiency, which could signal deeper operational issues needing resolution to sustain growth.