Premier 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.
| Period | Debtor Days | Inventory Days | Days Payable | Cash Conversion Cycle | Working Capital Days | ROCE % |
|---|---|---|---|---|---|---|
| FY2016 | 383 | 580 | 426 | 537 | 174 | — |
| FY2017 | 840 | 1,717 | 597 | 1,960 | -673 | -7.21 |
| FY2018 | 1,215 | 3,899 | 987 | 4,128 | -4,649 | -9.66 |
| FY2019 | 772 | 1,662 | 725 | 1,710 | -6,901 | -21.92 |
| FY2020 | 267 | 329 | 783 | -187 | -15,097 | -99.90 |
| FY2021 | 0 | 225 | 3,657 | -3,431 | -85,585 | — |
| FY2022 | 0 | 0 | — | 0 | -448,894 | — |
| FY2023 | — | — | — | — | — | — |
| FY2024 | — | — | — | — | — | — |
| FY2025 | — | — | — | — | — | — |
| FY2026 | — | — | — | — | — | — |
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.