Reliance Industries Key Ratios

The PAT margin has been declining over the years, indicating potential pressures on profitability amid rising sales, which affects overall ROE.Although asset turnover experienced an increase until the last year, the recent decline suggests that reliance on asset productivity is faltering, impacting efficiency-driven ROE improvement.Leverage has steadily increased, contributing to the higher ROE in the past years, yet the slight decrease in overall ROE indicates that debt efficiency may be reaching a threshold.

Inventory days have increased overall, suggesting slower inventory turnover and potential issues in stock management.Receivable days are rising, which indicates that the company is taking longer to collect payments, leading to a potential deterioration in liquidity.Though payable days show fluctuations, the overall negative cash conversion cycle signifies an efficient management of payables despite rising inventory and receivable days.

ROE has exhibited a generally positive trend except in the last year, showcasing an overall strengthened capability in generating returns on equity.ROCE has improved considerably, indicating effective utilization of capital including debt to generate higher returns, reinforcing investor confidence.ROA remains relatively stable but lower in recent years, suggesting that total asset efficiency is a lagging factor in overall return performance.