TCS Key Ratios

TCS has shown a consistent increase in ROE from 44.13% in FY2022 to 52.94% in FY2025, indicating a strengthening financial performance.The PAT margin has slightly fluctuated but remains relatively high, contributing positively, while the increase in asset turnover suggests improved efficiency in asset use.Leverage has increased modestly, providing some support to ROE; however, the rise is less significant than the gains seen in profitability and efficiency.

Inventory days have increased slightly but remain low overall, indicating efficient management of stock relative to sales.Receivable days are increasing, which suggests that collection periods are lengthening, potentially impacting cash flow negatively if it continues unchecked.The Cash Conversion Cycle is rising gradually, indicating a slower cash flow cycle that investors should monitor, highlighting areas for operational improvement.

ROE has significantly improved, driven by strong profitability and effective use of assets, reflecting management's focus on equity efficiency.ROCE is also up, surpassing ROE in growth, indicating that capital efficiency, including debt, is strong, suggesting productive utilization of both equity and debt capital.ROA shows a modest increase, indicating that while asset efficiency is improving, it lags slightly behind the equity and capital metrics.