Creative Eye Limited
Ratios
Working-Capital Days
Number of daysDebtor DaysInventory DaysDays Payable
How to read this: these lines track how the company manages day-to-day cash. Debtor days is how long customers take to pay; inventory days is how long stock sits before selling; days payable is how long the company takes to pay its own suppliers. Fewer debtor and inventory days generally means cash comes in faster; more days payable means the company holds its cash longer. The right level varies a lot by industry, so the trend over time matters more than any single number.
Return on Capital Employed
ROCE, in %How to read this: return on capital employed (ROCE) shows how much operating profit the company earns from every unit of capital it uses, as a percentage. A higher, steady line over the years suggests the business uses its capital efficiently. As with most ratios, the multi-year trend tells you more than any single year.
| Period | Debtor Days | Inventory Days | Days Payable | Cash Conversion Cycle | Working Capital Days | ROCE % |
|---|---|---|---|---|---|---|
| FY2015 | 282 | — | — | 282 | 543 | -6.97 |
| FY2016 | 515 | — | — | 515 | 1,597 | -3.01 |
| FY2017 | 281 | 1,804 | 730 | 1,355 | 472 | 2.50 |
| FY2018 | 389 | — | — | 389 | 854 | -11.38 |
| FY2019 | 154 | — | — | 154 | 161 | -12.04 |
| FY2020 | 79.21 | 2,896 | 1,511 | 1,463 | 162 | -13.11 |
| FY2021 | 5.95 | — | — | 5.95 | 510 | 0.66 |
| FY2022 | 11.85 | 3,953 | 585 | 3,380 | 549 | -1.95 |
| FY2023 | 5.59 | — | — | 5.59 | 1,156 | 1.07 |
| FY2024 | 23.30 | — | — | 23.30 | 3,883 | -6.29 |
| FY2025 | 4.20 | — | — | 4.20 | 856 | 0.72 |
| FY2026 | 0 | — | — | 0 | 4,563 | -4.79 |
Understanding these terms
Plain-English explanations of each figure in the table above, and what a beginner typically looks at. These are educational descriptions only, not advice.
- Debtor Days
- The average number of days the company takes to collect payment from its customers after a sale.How a beginner reads it: A beginner reads fewer days as cash coming in faster. A rising trend can mean customers are taking longer to pay, which ties up cash; readers compare it to the company's own past and to peers.
- Inventory Days
- The average number of days goods sit as inventory before being sold.How a beginner reads it: A beginner reads lower inventory days as stock moving quickly. A rising trend can signal slowing sales or overstocking; the right level varies a lot by industry, so comparison matters.
- Days Payable
- The average number of days the company takes to pay its own suppliers.How a beginner reads it: A beginner reads more days as the company holding onto cash longer — useful, within reason. Reading it next to debtor days shows whether the company collects from customers faster than it pays suppliers.
- Cash Conversion Cycle
- The number of days it takes to turn money spent on inventory back into cash from customers: inventory days plus debtor days minus days payable.How a beginner reads it: A beginner reads a shorter cycle as cash being tied up for less time. A negative cycle — paying suppliers after collecting from customers — is generally a sign of strong working-capital efficiency.
- Working Capital Days
- How many days of sales are tied up in the day-to-day running of the business (receivables and inventory, net of payables).How a beginner reads it: A beginner watches the trend: fewer days means less cash locked into operations. A steadily rising figure can mean growth is consuming more and more cash to sustain.
- ROCE %
- Return on Capital Employed — operating profit as a percentage of the total capital (equity plus debt) the business uses. It measures how efficiently the company turns all its capital into operating profit.How a beginner reads it: A beginner uses ROCE to judge how well a company uses every rupee of capital, regardless of how it is financed. Consistency over many years often matters more to readers than a single high year.