Aarey Drugs & Pharmaceuticals Ltd

Growth Ratio Summary

Growth Score : 4.00

The company's growth metrics present a mixed picture. While revenue growth is strong, there are declines in operating profit, earnings per share, asset growth, and net income. This suggests challenges in converting revenue growth into higher profits and efficient asset management. The company needs to address these areas to ensure sustainable growth.

Financial Ratio Summary

Financial Score : 3.60

The company's financial ratios present challenges. Adjusted EPS and book value per share are at threshold, while dividend per share is low as the company does not distribute dividends. Cash EPS is at threshold. However, capital expenditures are relatively high, indicating ongoing investments in operational capabilities. The company needs to optimize these financial metrics to ensure long-term financial health.

Profitability Ratio Summary

Profitability Score : 8.90

The company shows a good profitability profile. Gross profit margin is solid. Return on capital employed and return on equity are performing, indicating good returns on investments and shareholder equity. However, return on assets is low. Operating and net margins are strong, reflecting effective cost management and profitability.

Efficiency Ratio Summary

Efficiency Score : 6.33

The company's efficiency in asset utilization is a mix of strengths and weaknesses. Fixed asset and inventory turnover ratios are high, indicating efficient use of assets to generate revenue, and quick inventory processing. However, low receivables turnover and extended receivable days suggest slow collection of payments, which impacts cash flow and working capital management. Capital turnover is also low.

Coverage Ratio Summary

Coverage Score : 4.40

The company's coverage ratios indicate mixed performance. The interest coverage ratio is at threshold, suggesting an acceptable ability to cover interest expenses with earnings. However, the equity dividend coverage ratio is low, as the company does not distribute dividends. This could affect investor perception.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits strong solvency, indicating a solid long-term financial position. All the solvency metrics, including debt ratio, debt to equity ratio, equity ratio and debt to asset ratio, reveal that the company has a low level of debt and a substantial equity base. This provides financial stability and reduces the risk of financial distress.

Liquidity Ratio Summary

Liquidity Score : 6.12

The company's liquidity position reveals strengths and weaknesses. The quick ratio indicates a good ability to meet short-term obligations with its most liquid assets. However, the cash ratio is very low, suggesting a reliance on other current assets besides cash. The current ratio is at average, while the operating cash flow ratio is weak, implying potential difficulties in generating cash from operations to cover current liabilities.