Sundrop Brands Key Ratios

The decline in PAT margin from 2.82% to -12.23% indicates a significant deterioration in profitability, which directly impacted ROE, driving it down to -11.34%.The asset turnover ratio also decreased, suggesting diminishing efficiency in asset utilization, although it remains higher than 1, indicating some level of effectiveness in generating sales.Leverage remained relatively stable with a slight decline, showing the company did not increase debt significantly, but the worsening profitability outweighed any benefits from leverage.

Inventory days increased from 54.16 to 69.51, signaling a potential slowdown in inventory turnover which can tie up working capital and reduce liquidity.Receivable days rose significantly from 22.20 to 31.00, indicating that the company may be facing challenges in collecting payments from customers promptly, which can strain cash flow.A drastic shift in payable days from 42.60 to 90.20 exposes a reliance on extended credit terms which may suggest cash flow stress but could also imply better negotiation with suppliers.

The consistent decline in ROE, ROCE, and ROA illustrates a troubling downward trend in the company's financial health, predominantly driven by diminishing net profits amid stable asset and equity levels.ROE turned negative at -11.34%, indicating that the company's equity is losing value, largely due to the steep decline in PAT margins.Overall, asset efficiency indicated by ROA fell sharply, revealing that the company’s assets are not generating sufficient profit, marking a critical area for improvement.