Power Grid Corp Key Ratios

The decline in ROE from 23.02% in 2022 to 17.26% in 2025 suggests reducing profitability as the PAT margin decreased from 40.42% to 33.90%.Asset turnover showed modest improvement initially, peaking in 2024, indicating enhanced efficiency in utilizing assets before a slight drop in 2025.Leverage decreased over the years with assets-to-equity dropping from 3.61 to 2.95, signaling a lower reliance on debt and potentially indicating improved financial stability.

Inventory days improved initially from 12.08 to 10.79, but increased to 12.79 by 2025, suggesting a deterioration in inventory management efficiency.Receivable days increased significantly from 79.47 to 105.19, indicating slower collections, before normalizing to 77.73, highlighting fluctuating efficiency in receivables management.The cash conversion cycle has consistently increased, peaking at 116.12 before decreasing in 2025, signaling challenges in managing short-term liquidity.

ROE has consistently declined, suggesting worsening equity efficiency, primarily driven by lower profitability and diminished PAT margins.ROCE shows stability around the 12.9% mark, indicating that the company can maintain its capital efficiency despite declining returns on equity.ROA reflects a similar downward trend, highlighting that overall asset efficiency is a concern, driven by both declining profits and a slower turnover of total assets.