Vera Synthetic 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 | 46.83 | 13.18 | 10.23 | 49.77 | 20.86 | 12.31 |
| FY2016 | 45.69 | 21.15 | 16.10 | 50.74 | 23.18 | 9.86 |
| FY2017 | 36.04 | 31.97 | 7.05 | 60.97 | 5.44 | 14.04 |
| FY2018 | 136 | 38.30 | 81.62 | 92.96 | 45.98 | 25.18 |
| FY2019 | 82.67 | 5.46 | 16.38 | 71.76 | 70.01 | 18.82 |
| FY2020 | 92.01 | 28.52 | 23.50 | 97.02 | 86.02 | 17.96 |
| FY2021 | 83.36 | 51.60 | 33.41 | 102 | 118 | 16.47 |
| FY2022 | 89.01 | 30.23 | 37.57 | 81.67 | 135 | 15.48 |
| FY2023 | 82.15 | 38.86 | 14.65 | 106 | 102 | 13.29 |
| FY2024 | 27.06 | 68.81 | 7.57 | 88.30 | 80.17 | 12.28 |
| FY2025 | 37.83 | 79.70 | 24.33 | 93.21 | 147 | 12.25 |
| FY2026 | 32.42 | 52.94 | 9.69 | 75.66 | 135 | 17.65 |
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.