Alok Industries Ltd

Growth Ratio Summary

Growth Score : 6.00

Alok Industries demonstrates a volatile growth pattern. While earnings per share and net income have shown strong growth, revenue and asset growth rates are declining. The inconsistent growth across these metrics suggests instability and potential challenges in sustaining long-term growth. The company's future prospects are uncertain.

Financial Ratio Summary

Financial Score : 2.00

Alok Industries' financial metrics are generally weak. Negative adjusted and cash earnings per share, along with a negative book value per share, signal significant financial challenges. The company is not generating positive earnings, and its asset value is deteriorating. This situation poses substantial risks to its financial stability.

Profitability Ratio Summary

Profitability Score : 2.00

Alok Industries' profitability ratios are poor. Negative gross profit, operating, and net margins, along with negative returns on assets, capital employed, and equity, indicate significant challenges in generating profits. The company's financial health is severely impacted by these profitability issues, raising concerns about its long-term viability.

Efficiency Ratio Summary

Efficiency Score : 5.33

Alok Industries shows mixed efficiency. While receivables turnover is strong, indicating efficient collection of revenues, fixed asset and capital turnover are low, suggesting underutilization of assets. Inventory management is moderate. These mixed results suggest that while the company is effective at collecting revenue, it struggles with asset utilization and inventory turnover, impacting overall operational efficiency.

Coverage Ratio Summary

Coverage Score : 2.00

Alok Industries exhibits poor coverage ratios, particularly concerning its ability to cover interest expenses. The negative interest coverage ratio indicates an inability to meet interest obligations with operating income. This significantly raises financial risk, as the company's earnings are insufficient to cover its debt-related costs.

Solvency Ratio Summary

Solvency Score : 4.40

Alok Industries exhibits a concerning solvency position. High debt levels relative to equity and assets suggest a heavy reliance on borrowing, increasing financial risk. While the negative debt-to-equity ratio may seem positive, it arises from negative equity, indicating underlying financial distress. This situation could limit the company's financial flexibility and its ability to invest in future growth.

Liquidity Ratio Summary

Liquidity Score : 2.68

The liquidity position of Alok Industries is weak. While the quick ratio suggests some ability to meet short-term obligations without relying on inventory, the current and cash ratios indicate significant challenges in covering current liabilities with liquid assets. The negative operating cash flow ratio further exacerbates these concerns. The company may face difficulties in meeting its immediate financial obligations.