Growth Ratio Summary

Growth Score : 6.00

The company demonstrates strong growth in operating profit and net income, indicating successful strategies in cost management and profitability. However, the revenue growth rate is low, suggesting that the company's top-line growth is lagging. Asset growth is also strong, reflecting investments in the company's future. There are positive trends in profitability and asset expansion, the lack of significant revenue growth could be a concern if not addressed.

Financial Ratio Summary

Financial Score : 4.00

The company's financial ratios reveal low adjusted earnings per share and book value per share, offset by conservative capital expenditures. The cash earnings per share are slightly better. The absence of dividends is notable. The low earnings per share and book value per share could be a concern for investors. The conservative approach to capital expenditures suggests a cautious investment strategy. Overall, the financial ratios suggest a mixed performance, with some areas needing improvement to enhance investor appeal.

Profitability Ratio Summary

Profitability Score : 6.00

The company demonstrates strong profitability, particularly in return on capital employed and return on equity. Return on assets is also good. However, the gross profit margin, operating margin, and net margin are low. This suggests the company is effective at generating profits from its capital and equity but struggles with overall profitability margins. While the company is generating good returns, improving profit margins could further enhance its financial performance.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company's efficiency ratios present a mixed picture. While days sales in inventory and receivable days are relatively well-managed, the fixed asset turnover, inventory turnover, receivables turnover, and capital turnover ratios are low. This suggests the company may not be efficiently utilizing its assets to generate sales. While there are some strengths in managing inventory and receivables, the overall inefficiency in asset utilization could limit the company's profitability and growth potential.

Coverage Ratio Summary

Coverage Score : 4.40

The company's coverage ratios indicate moderate ability to cover its interest expenses but a lack of dividend coverage. The interest coverage ratio suggests the company can meet its interest obligations. The absence of equity dividend coverage reflects that the company is not currently distributing dividends to equity shareholders. While the company can handle its debt obligations, the lack of dividend payouts may not appeal to equity investors seeking regular income.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits strong solvency, with a high equity ratio and low debt ratios. This indicates a solid financial structure with minimal reliance on debt financing. The company's assets are primarily funded by equity, providing a stable financial foundation. This strong solvency position offers financial flexibility and reduces the risk of financial distress. However, it might also indicate a missed opportunity to leverage debt for potentially higher returns, especially if interest rates are favorable.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position is weak, indicating potential difficulties in meeting its short-term obligations. A low current ratio, quick ratio, and cash ratio suggest that the company may struggle to cover its immediate liabilities with its current assets. This could pose risks if the company faces unexpected expenses or a downturn in sales. On the other hand, the stability in these ratios over the years might indicate a consistent approach, but it does not alleviate the underlying concern about inadequate liquid assets.