Adroit Infotech Ltd

Growth Ratio Summary

Growth Score : 8.80

The company demonstrates strong growth in several key areas, including revenue, EPS, asset, and net income. However, the operating profit growth rate is a concern, indicating potential issues with profitability from core operations. Overall, the company shows significant expansion, but needs to address its operating profit performance. The weighted average calculation considers several years of data, emphasizing recent trends.

Financial Ratio Summary

Financial Score : 4.00

The company's financial ratios indicate challenges. Adjusted EPS and book value per share are low, and there are no dividends being paid. The cash EPS is also relatively low. However, capital expenditures are well-managed. Overall, the company's financial performance, as reflected by these ratios, requires attention. The weighted average calculation gives more importance to the most recent years.

Profitability Ratio Summary

Profitability Score : 9.40

The company exhibits strong profitability, driven by excellent gross profit margin, ROCE, ROE, operating margin, and net margin. However, the ROA is comparatively lower, indicating potential inefficiencies in asset utilization. Overall, the company's profitability is robust, but there is room to improve asset efficiency. The weighted average calculation gives more importance to the most recent years.

Efficiency Ratio Summary

Efficiency Score : 3.33

The company's efficiency ratios present mixed results. While the days sales in inventory is excellent due to zero inventory, fixed asset, inventory and capital turnover ratios are poor, suggesting underutilization of assets. The receivables turnover ratio and receivable days are also concerning, indicating slow collection of revenues. Improving asset turnover and receivables management is essential for enhanced efficiency. The weighted average calculation takes into account data points from the past several years.

Coverage Ratio Summary

Coverage Score : 6.80

The company's coverage ratios show mixed results. The interest coverage ratio is strong, indicating a good ability to cover interest expenses. However, the equity dividend coverage ratio is poor due to the absence of dividend payments. While the interest coverage is positive, the lack of dividend coverage needs attention. The weighted average calculation takes into account data points from the past several years.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits excellent solvency. Low debt and high equity ratios indicate a strong financial structure and minimal risk of financial distress. The debt to asset ratio is also low, reinforcing the company's financial stability. This strong solvency provides a solid foundation for future growth and resilience against economic downturns. The weighted average calculation considers several years of data, emphasizing recent trends.

Liquidity Ratio Summary

Liquidity Score : 7.14

The company's liquidity position is mixed. Current and quick ratios suggest a good ability to meet short-term obligations. However, the low cash ratio indicates a reliance on current assets other than cash for immediate liquidity. The operating cash flow ratio is poor, pointing to potential difficulties in generating cash from operations. While the current and quick ratios are positive, the weaknesses in cash and operating cash flow need attention. The weighted average calculation gives more importance to the most recent years.