NTPC Key Ratios

The decline in PAT margin in FY23 indicates pressures on profitability due to higher costs or competitive pricing, impacting the overall ROE.Asset turnover peaked in FY23 showing improved efficiency in utilizing assets but later declined, indicating a need for better asset management moving forward.Leverage has steadily decreased over the four years, which, while lowering risk, may reduce potential returns as equity becomes a more substantial part of financing.

Inventory days have increased significantly in FY24 and FY25, indicating possible slow-moving inventory or overstocking issues that may tie up cash.Receivable days improved in FY23 but have since started to increase again, suggesting potential issues with collection efficiency or changes in credit policy.The cash conversion cycle shows a slight deterioration in FY25, which may indicate longer overall investment in working capital and could pressure liquidity.

ROE has shown a rebound after a dip, primarily driven by improvements in profitability as indicated by trends in PAT margins across the years.The ROCE is on an upward trend, reflecting better efficiency in utilizing both equity and debt capital to generate returns.ROA has improved consistently, driven largely by more effective asset utilization, indicating a stronger overall operational efficiency.