Whirlpool Of India Key Ratios

The decline in ROE from 18.60% in FY2022 to 6.64% in FY2023 was primarily driven by a significant decrease in PAT margin, falling from 9.14% to 3.28%, indicating weakened profitability.Despite stable asset turnover ratios hovering around 1.55 to 1.58, the improvement to 1.70 in FY2025 suggests enhanced efficiency in utilizing assets, positively supporting ROE going forward.Leverage remained relatively stable around 1.70, suggesting limited contribution from debt to the equity returns; thus, profitability improvement is crucial for sustained ROE growth.

Inventory days have improved significantly from 57.46 in FY2022 to 43.38 in FY2025, showcasing better inventory management and faster conversion to sales.Receivable days decreased steadily from 17.98 to 14.33, indicating improved collections and efficiency in cash flow management.Payable days have decreased as well, from 136.57 to 99.34, resulting in a reduced cash conversion cycle, which is now less negative at -41.63 days, reflecting improved working capital efficiency overall.

ROE has sharply declined to 6.64% in FY2023 from 18.60% in FY2022, primarily influenced by poor profitability rather than capital efficiency or asset management, with efforts needed to restore margins.ROCE mirrors the trend of ROE, dropping from 21.44% to 9.08%, indicating that both equity and debt capital utilization have also been negatively affected, but it rebounds to 14.01% in FY2025 as profitability improves.ROA followed a similar decline pattern, signaling that asset efficiency also suffered during FY2023; however, the gradual recovery indicates a potential turnaround for future returns.