Aarti Pharmalabs Ltd

Growth Ratio Summary

Growth Score : 10.00

The company exhibits excellent growth across various metrics, including revenue, operating profit, EPS, assets, and net income. This indicates a strong upward trajectory and effective growth strategies. The company's consistent growth positions it well for future success and market leadership.

Financial Ratio Summary

Financial Score : 7.60

The company demonstrates strong financial performance, driven by high adjusted and cash earnings per share and book value. However, the relatively lower score for dividend per share and capital expenditures indicates areas for potential improvement. The company's financial health is supported by its robust earnings and asset value.

Profitability Ratio Summary

Profitability Score : 10.00

The company demonstrates excellent profitability, with high gross profit margins, ROCE, ROE, ROA, operating margins, and net margins. This indicates efficient operations and strong financial performance. The company is generating substantial profits from its sales and investments.

Efficiency Ratio Summary

Efficiency Score : 2.33

The company's efficiency in utilizing its assets is generally low. The turnover ratios for fixed assets, inventory, and receivables are not very high, indicating that the company may not be generating sufficient revenue from its asset base. The company needs to improve its asset management practices to enhance overall efficiency as the days sales in inventory and receivable days are high which is not a good sign.

Coverage Ratio Summary

Coverage Score : 10.00

The company exhibits excellent coverage ratios, indicating a strong ability to meet its interest and dividend obligations. The high-interest coverage ratio suggests the company can comfortably handle its interest expenses, while the equity dividend coverage ratio indicates a sufficient capacity to cover dividend payments. The company's strong coverage ratios reduce financial risk and enhance its attractiveness to investors.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits excellent solvency, indicating a solid financial structure and a strong ability to meet its long-term obligations. The low presence of debt in relation to equity and assets suggests a conservative approach to financial leverage, which reduces financial risk. The company's financial stability and long-term sustainability are enhanced by its strong equity position.

Liquidity Ratio Summary

Liquidity Score : 4.76

The company's ability to meet its short-term obligations appears mixed. While the current and quick ratios indicate an acceptable level of liquid assets, the low cash ratio suggests limited immediate liquidity. This could pose challenges in handling unexpected expenses or taking advantage of immediate investment opportunities. However, a positive operating cash flow ratio indicates the company's ability to generate cash from its operations, which can help offset some liquidity concerns.