Reliance Communications L
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 | Cash Conversion Cycle | Working Capital Days | ROCE % |
|---|---|---|---|---|
| FY2015 | 72 | 72 | -71 | 5 |
| FY2016 | 43 | 43 | -249 | 4 |
| FY2017 | 181 | 181 | -1,356 | -1 |
| FY2018 | 170 | 170 | -617 | -37 |
| FY2019 | 122 | 122 | -2,170 | -7 |
| FY2020 | 106 | 106 | -11,297 | -153 |
| FY2021 | 215 | 215 | -27,797 | — |
| FY2022 | 194 | 194 | -42,478 | — |
| FY2023 | 219 | 219 | -60,032 | — |
| FY2024 | 296 | 296 | -81,876 | — |
| FY2025 | 317 | 317 | -97,056 | — |
| FY2026 | 358 | 358 | -109,011 | — |
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.
- 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.