ONGC Key Ratios

The decline in PAT margin significantly impacts the ROE, dropping from 9.27% in FY2022 to 5.92% in FY2025 due to fluctuating profitability amid market conditions.Asset turnover has shown variability, improving in FY2023 but deteriorating thereafter, indicating mixed efficiency in utilizing assets for revenue generation.Leverage ratios have remained stable, suggesting that debt levels have been maintained, but their contribution to ROE is limited without improvements in profitability and asset efficiency.

Inventory days decreased from 33.71 to 26.10, indicating improved inventory management in FY2023, but later increased, suggesting potential overstocking or slower sales in FY2025.Receivable days showed a slight upward trend, indicating potential delays in collection, which could pressure cash flow if not managed effectively.Payable days have increased significantly, reflecting a shift in payment terms that might improve short-term liquidity but could also strain supplier relationships if prolonged.

ROE has shown volatility with a peak of 20.52% in FY2022 but reduced significantly in subsequent years, driven primarily by falling PAT margins.ROCE remains higher than ROE across the analysis period, suggesting that capital employed, including debt, is utilized more efficiently than equity alone.ROA continues to trend downward indicating that overall asset efficiency is declining, raising concerns for investors about optimal asset utilization.