Max Healthcare Institute Key Ratios

The company's PAT margin improved significantly from -5.48% in 2021 to 24.19% in 2023, driven by enhanced profitability, contributing to the rise in ROE.Asset turnover has shown a steady increase from 0.4007 to 0.4892, indicating better efficiency in asset utilization, enhancing ROE.Leverage has slightly improved with a decreasing asset-to-equity ratio from 1.533 to 1.407, indicating reduced reliance on debt, which also positively affects ROE.

Inventory days have marginally improved, moving from 5.8651 to 5.2687, indicating a slight enhancement in inventory management.Receivable days have decreased from 33.62 to 26.97, signaling improved collection efficiency which positively impacts cash flows.Payable days have increased, but the significantly negative cash conversion cycle suggests that working capital management may still require optimization.

ROE jumped sharply from -2.80% to 16.19%, primarily driven by a strong increase in PAT margin, demonstrating effective equity utilization.ROCE improved consistently from 2.22% to 16.26%, indicating enhanced capital efficiency driven by operational performance.ROA followed a similar trajectory, rising from -1.83% to 11.44% as overall asset efficiency improved, reflecting a balance between equity and total asset performance.