AB Cotspin India Ltd

Growth Ratio Summary

Growth Score : 10.00

The company exhibits a very strong growth performance across various metrics. The company is experiencing a significant increase in its revenue, operating profit, earnings per share, asset base and net income. This indicates successful expansion and effective management strategies. The company is well-positioned for future success and increased market share.

Financial Ratio Summary

Financial Score : 2.80

The company's financial performance, as reflected in its per-share metrics and capital expenditures, is relatively weak. The adjusted earnings per share and book value per share are very low, indicating limited profitability and equity value for shareholders. The cash earnings per share is below average. The dividend per share is zero, suggesting the company is not distributing profits to shareholders in the form of dividends. This may reduce investor confidence.

Profitability Ratio Summary

Profitability Score : 9.80

The company demonstrates strong profitability performance across various metrics. Its gross profit margin, return on capital employed, return on equity, return on assets, operating margin and net margin all indicate very efficient management and strong financial health. This signals the company's ability to generate profits from its operations and investments. This may attract investors and improve shareholder value.

Efficiency Ratio Summary

Efficiency Score : 5.00

The company's ability to efficiently manage its assets and operations is mixed. The receivables turnover and receivable days are average, suggesting a moderate efficiency in collecting revenues. However, fixed asset, inventory and capital turnover ratios are low, indicating underutilization of assets and potential inefficiencies in inventory management and capital deployment. This may result in lost opportunities and reduced profitability.

Coverage Ratio Summary

Coverage Score : 4.40

The company's ability to meet its interest and dividend obligations is mixed. Interest coverage is slightly above average, indicating a moderate capacity to cover interest expenses with its earnings. However, there is no equity dividend coverage, suggesting the company is not distributing dividends to its shareholders. This may limit investor appeal.

Solvency Ratio Summary

Solvency Score : 7.90

The company's financial stability and long-term viability is satisfactory. The debt and debt-to-equity ratios indicates a reasonable balance between debt and equity financing. The equity ratio is slightly above average, suggesting a moderate reliance on equity. The debt to asset ratio is excellent, indicating the company's assets are majorly funded by equity. This signifies a relatively stable financial structure. However, the company should continuously monitor its debt levels to avoid financial distress in the future.

Liquidity Ratio Summary

Liquidity Score : 3.18

The company's ability to meet its short-term obligations is questionable. The current and quick ratios indicate some capacity to cover immediate liabilities, very low cash ratio and operating cash flow ratio indicates difficulty in generating cash from operations. This suggests a need for improved working capital management to ensure smooth operations and financial stability. A potential risk is the inability to quickly convert assets into cash during financial distress.