Titan Co Key Ratios

The sharp increase in ROE from 13.76% in FY21 to 32.9983% in FY24 is primarily fueled by an increase in PAT margin, notably from 4.50% to 6.84%, indicating enhanced profitability driving return for shareholders.Asset turnover has improved, reflecting more efficient use of assets, as it increased from 1.46 to 1.75, which suggests Titan is generating more sales per unit of assets over the years.Leverage has also risen, albeit moderately, from 2.10 to 2.75, indicating Titan is relying more on debt financing to boost its returns, which presents a potential risk but also enhances ROE.

Inventory days have shown a declining trend from 139.22 to 127.31 days, indicating a more efficient inventory management and faster inventory turnover.Receivable days have fluctuated slightly but remain stable overall, while payable days decreased from 15.40 to 12.14 days, reflecting improved supplier management and cash retention; these changes result in enhanced cash flow.The Cash Conversion Cycle has decreased from 129.54 to 121.21 days, illustrating an overall improvement in working capital efficiency, which is favorable for liquidity position and operational management.

ROE is on an upward trajectory, significantly supported by improving net profit margins and efficient asset utilization, with FY24 projecting a ROE of 32.9983% reflecting strong equity performance.ROCE has also improved, peaking in FY23 before a slight decline in FY24, indicating a robust ability to generate returns from both equity and debt, though crediting returns more towards equity in recent performance.ROA sees modest enhancement but fluctuates, suggesting improvements in asset productivity are not as strong compared to the returns experienced on equity, indicating an increasing efficiency in leveraging equity rather than total asset utilization.