Shriram Finance Key Ratios

The rise in PAT margin from 14.34% in 2021 to 20.25% in 2024 indicates enhanced profitability, significantly driving the increase in ROE during this period.Asset turnover showed slight fluctuations, yet peaked in 2023 at 0.165, reflecting greater efficiency in generating sales from assets, although it decreased slightly in 2024.Leverage has reduced from 6.34 in 2021 to 5.25 in 2024, indicating a decreased dependence on debt, which may suggest a more conservative capital structure, enhancing shareholder confidence.

The inventory days show a consistent value of 0, indicating that inventory management metrics are possibly untracked or irrelevant for this analysis.Receivable days have risen from 0.79 in 2021 to 4.21 in 2024, which suggests slower collections and may indicate deteriorating liquidity risk.The Cash Conversion Cycle has progressively increased to 4.21 days, suggesting a longer working capital cycle which may lead to tighter cash flow if not managed effectively.

ROE peaked at 17.32% in 2023, driven primarily by improved PAT margin, showcasing effective profit retention and capital utilization for equity holders.ROCE increased to 12.18% in 2023, reflecting stronger capital efficiency, boosted particularly by the rise in operational profitability despite lower leverage.ROA improved significantly, reaching 3.25% in 2023, driven by asset efficiency, which indicates better management of the overall asset base.