Reliance Industries posts its lowest ever return on assets in last fiscal

Burgeoning capital spend, falling refining margin and slowing momentum in the telecom business seem to have increased pressure on the balance sheet of Reliance Industries (RIL), which turned in its worst performance in terms of return on assets (RoA) — 4.35% — in FY19.

The RoA of country’s largest company by market capitalisation has been dwindling over the last few years after touching a high of 12.7% in FY08, data sourced from Bloomberg showed.

The return ratio, which indicates how profitable a company is relative to its total assets, stood at an average of 7.3% during the last fifteen years. It also signals how efficient management is at using its assets to generate earnings.