Growth Ratio Summary

Growth Score : 4.80

The company's growth metrics present a mixed picture. While revenue and asset growth rates are positive, declines in operating profit, earnings per share, and net income growth indicate significant challenges in sustaining profitable growth. Focus on innovation, market expansion, and cost management is essential for improving the bottom line and attracting investors. The weighted average calculation emphasizes the recent negative trends, highlighting the need for strategic adjustments to foster sustainable growth.

Financial Ratio Summary

Financial Score : 2.40

The financial metrics reveal weaknesses in key areas such as adjusted earnings per share, cash earnings per share, book value per share, dividend per share and capital expenditures. Addressing these areas is crucial for improving investor perception and financial performance. The weighted average calculation emphasizes the recent negative trends, underscoring the need for strategic adjustments to enhance financial outcomes and rebuild investor confidence. This data will help to know the real financial status of the company.

Profitability Ratio Summary

Profitability Score : 9.80

The profitability ratios shows strong ability to generate profits from its operations. High gross profit margin, ROCE, ROE, ROA, operating margin, and net margin indicate efficient management and effective cost control. In the consumer durables sector, such profitability is a competitive advantage, allowing for reinvestment and growth. Maintaining these high levels of profitability is crucial for sustaining long-term financial health and investor confidence.

Efficiency Ratio Summary

Efficiency Score : 2.67

Airo Lam Ltd's efficiency ratios reveals significant challenges in asset utilization and operational effectiveness. Low turnover ratios across fixed assets, inventory, and receivables, combined with extended days sales in inventory and receivable days, suggest inefficiencies in managing assets and converting them into sales. Improving these ratios is crucial for enhancing profitability and overall financial health. This situation calls for a strategic review of production, inventory, and credit policies to optimize resource utilization.

Coverage Ratio Summary

Coverage Score : 4.40

The coverage ratios indicate a mixed ability to meet financial obligations. While the interest coverage ratio is adequate, the lack of equity dividend coverage raises concerns about shareholder returns. In the consumer durables sector, maintaining a healthy coverage ratio is vital for ensuring financial stability and investor confidence. Focus on improving earnings and dividend policies is essential. This ratio will help maintain the company's financial health.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits strong solvency. All the solvency metrics including Debt Ratio, Debt to Equity Ratio, Equity Ratio and Debt To Asset Ratio indicates excellent financial leverage management and a strong equity base. In the consumer durables sector, this level of solvency provides a competitive advantage, allowing for strategic investments and weathering economic downturns effectively. It also suggests efficient use of debt to finance operations.

Liquidity Ratio Summary

Liquidity Score : 3.58

The liquidity position reflects challenges in meeting short-term obligations. While the current and quick ratios suggest some ability to cover immediate liabilities, the low cash and operating cash flow ratios indicate potential difficulties in generating sufficient cash from operations. In the consumer durables sector, maintaining adequate liquidity is crucial for managing inventory and supplier payments. A more robust cash position could provide greater flexibility in navigating market fluctuations. There's a need to improve the company's short-term financial health.