Paras Petrofils Ltd.
Ratios
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 | Cash Conversion Cycle | Working Capital Days | ROCE % |
|---|---|---|---|---|---|
| FY2015 | 0 | 0 | 0 | 71.43 | -0.76 |
| FY2016 | — | — | — | — | 0.27 |
| FY2017 | -10,463 | 0 | -10,463 | 104,512 | 2.98 |
| FY2018 | -803 | 0 | -803 | 81,176 | 3.36 |
| FY2019 | 417 | 0 | 417 | 61,268 | 2.47 |
| FY2020 | — | — | — | — | 2.81 |
| FY2021 | -1,460 | 0 | -1,460 | 233,783 | 3.90 |
| FY2022 | — | — | — | — | 3.67 |
| FY2023 | — | — | — | — | 1.41 |
| FY2024 | — | — | — | — | 3.51 |
| FY2025 | — | — | — | — | 5.42 |
| FY2026 | — | — | — | — | -1.74 |
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.
- 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.