Notes to Consolidated financial Consol_Note33

33 Ratios

For the year ended 31 March

Particulars

Remarks

Numerator

Denominator

2024

2023

(a)

Current ratio

Change is because of increase in trade payables and short-term borrowings.

Current assets

Current liabilities

1.30

1.83

(b)

Debt equity ratio

Total debt

Shareholder’s equity

0.06

–

(c)

Debt service coverage ratio

Earnings for debt service

Debt service

134.75

161.62

(d)

Return on equity ratio

Change is because of increase in profits during the year.

Profit after tax

Average shareholder’s equity

26.4%

20.5%

(e)

Inventory turnover ratio

Material cost

Avg. inventory

19.61

18.70

(f)

Trade receivables turnover ratio

Revenue from contracts with customers

Avg. trade receivables

22.87

21.65

(g)

Trade payables turnover ratio

Purchases

Trade payables

6.14

6.90

(h)

Net capital turnover ratio

Increase is due to higher total income and reduction in working capital.

Total income

Avg. working capital

13.07

7.49

(i)

Net profit ratio

Profit after tax

Total income

16.6%

16.1%

(j)

Return on capital employed

Change is because of increase in profits during the year.

Profit before tax

Capital employed

33.2%

26.3%

(k)

Return on investments

Change is because of increase in profits during the year.

Profit before tax

Average shareholder’s equity

34.4%

26.5%