Trent Key Ratios

Trent Ltd.'s ROE has dramatically risen from -7.71% in 2021 to 44.35% in 2024, indicating a strong recovery driven primarily by increasing profitability, as reflected in the PAT margin growth from -5.64% to 12.01%.Asset turnover has improved notably, increasing from 0.51 to 1.77, showcasing enhanced efficiency in asset usage over this period, contributing positively to the ROE.Leverage showed some fluctuation but ultimately declined in 2024 with a ratio of 2.26, suggesting a decrease in reliance on debt and enhanced equity position, which further supports the increased ROE.

Inventory days have consistently decreased from 66.79 to 40.29, indicating improved inventory management and reduced holding costs.Receivable days initially improved but slightly rose in 2024, suggesting more time taken to collect receivables which might impact cash flow.Payable days have significantly dropped from 68.08 to 33.15, indicating the company is paying its suppliers faster, which can strain cash flow management.

ROE has markedly increased from -7.71% to 44.35%, significantly driven by improvements in profitability as evidenced by the rising PAT margin.ROCE and ROA also demonstrate strong upward trends, increasing from 2.11% and -3.29% to 59.75% and 19.66% respectively, highlighting effective capital utilization beyond just equity.The overall strong return metrics reveal that equity is the primary driver of improved returns, backed by efficient overall asset management.