Tata Consumer Produc Key Ratios

The increasing PAT margin over the last four years indicates improved profitability, contributing positively to ROE, peaking in FY 2023.Asset turnover has shown a slight upward trend, indicating better efficiency in utilizing assets to generate sales, which supports ROE stability.However, leverage has notably increased in FY 2024, which could elevate risk while reflecting a dependency on debt for financing, thus influencing ROE fluctuations.

Inventory days peaked in FY 2022 and have since slightly declined, suggesting stabilization in stock management, which is positive for liquidity.Receivable days consistently improved, indicating a quicker collection cycle, enhancing cash flow efficiency for the company.Conversely, payable days have increased significantly, suggesting longer payment terms, which may benefit cash flow but could indicate potential liquidity risk if overextended.

The ROE has generally improved, driven by higher profitability; however, a slight decline is seen in FY 2024, implying pressures on net profit amidst rising expenses.ROCE increased significantly in FY 2023, highlighting enhanced capital efficiency when factoring in debt, but saw a drop in FY 2024, showcasing potential operational challenges.ROA also improved overall, but the declines in latest fiscal years signal the need for a more effective asset utilization strategy.