Tgb Banquets&Hotels Ltd
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 % |
|---|---|---|---|---|---|---|
| FY2008 | 64.77 | 108 | 79.96 | 92.70 | 42.24 | 16.22 |
| FY2010 | 36.73 | 166 | 106 | 96.37 | 80.58 | — |
| FY2011 | 18.55 | 188 | 80.39 | 126 | -70.39 | 9.72 |
| FY2012 | 21.37 | 200 | 97.53 | 124 | -33.55 | 8.54 |
| FY2013 | 30.69 | 235 | 157 | 109 | -24.73 | 10.60 |
| FY2014 | 52.65 | 259 | 200 | 112 | -14.59 | 10.35 |
| FY2015 | 67.36 | 327 | 209 | 185 | 7.50 | 4.27 |
| FY2016 | 68.04 | 308 | 197 | 179 | -10.70 | 1.36 |
| FY2017 | 104 | 275 | 218 | 161 | -40.35 | 3.27 |
| FY2018 | 124 | 219 | 231 | 113 | 211 | -10.96 |
| FY2019 | 9.89 | 206 | 198 | 17.30 | 105 | -32.07 |
| FY2020 | 54.02 | 146 | 519 | -319 | 355 | 1.46 |
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.