The Ramco Cements Key Ratios

A significant decline in PAT margin from 14.68% in 2022 to 3.20% in 2025 indicates that profitability has been eroding, primarily driven by increasing costs or reduced sales prices.Asset turnover peaked at 0.8968 in 2024 but decreased to 0.7683 in 2025, suggesting that while the company was previously more efficient in generating sales from its assets, recent years have seen a fall in efficiency as revenues lagged despite asset growth.Leverage has increased steadily, from 2.0454 in 2022 to 2.2251 in 2025, implying greater dependency on debt financing, although this has not been sufficient to offset the declines in profitability or efficiency.

Inventory days initially improved from 28.94 days in 2022 to a low of 24.57 days in 2024, suggesting effective inventory management, but spiked to 29.08 days in 2025, indicating potential overstocking or slow sales.Receivable days decreased to 12.65 in 2023 but dramatically increased to 23.06 in 2025, indicating deteriorating collections and possibly impacting cash flows adversely.Payable days have shown volatility, dropping to 154.49 in 2023, then rising to 204.85 in 2025, signifying a potential strain on liquidity as the company takes longer to pay suppliers.

ROE has significantly declined from 14.48% in 2022 to a troubling 3.65% in 2025, highlighting deteriorating equity efficiency primarily due to a drop in net profits.ROCE and ROA trends mirror this downward trajectory, with ROCE falling from 9.46% to 6.43% and ROA slipping from 7.08% to 1.64%, indicating challenges in utilizing both equity and debt for generating returns effectively.The returns suggest that both equity and asset management strategies have weakened, with neither leverage nor operational efficiency able to sustain previous performance levels.