Growth Ratio Summary

Growth Score : 6.00

The growth ratios present a mixed picture. Revenue and asset growth rates are strong, signaling expansion, while the operating profit growth is also encouraging. However, the negative growth in earnings per share and net income raises concerns. Despite growing revenues, the company has not been able to translate this into higher profitability at the shareholder level. Addressing these issues is crucial for ensuring sustainable growth.

Financial Ratio Summary

Financial Score : 4.00

The financial ratios present a mixed view. While capital expenditures is a positive sign, the adjusted earnings per share, cash earnings per share, and book value per share are low. The company does not have a dividend per share, which could be a concern for investors seeking income. Improving earnings and shareholder value should be a priority to strengthen investor confidence.

Profitability Ratio Summary

Profitability Score : 10.00

Ambey Laboratories demonstrates strong profitability. High gross profit margins, return on capital employed, return on equity, return on assets, operating margins, and net margins all indicate that the company is generating profits. Maintaining these high levels of profitability will be key to sustaining long-term financial success.

Efficiency Ratio Summary

Efficiency Score : 4.67

The efficiency ratios present a mixed view of how well the company uses its assets. The fixed asset turnover ratio is average, indicating a moderate level of sales generated from fixed assets. The receivables turnover is good, meaning that the company collects payments fairly quickly. However, long receivable days and a low capital turnover ratio suggest there are issues with managing working capital. Optimizing these aspects could free up capital and boost overall efficiency.

Coverage Ratio Summary

Coverage Score : 5.60

The coverage ratios reveal a mixed ability to meet financial obligations. The interest coverage ratio is reasonable, suggesting the company can handle paying interest on its debts. However, the equity dividend coverage ratio is low, as the company has not been paying out dividends. Focusing on ensuring the company can comfortably meet its debt obligations is essential for financial stability.

Solvency Ratio Summary

Solvency Score : 10.00

The company's solvency ratios demonstrate a strong financial position. With a low debt ratio and debt-to-equity ratio, coupled with a high equity ratio, Ambey Laboratories exhibits financial stability and low leverage. The debt-to-asset ratio further confirms that a small portion of the company's assets are financed through debt. This indicates a solid foundation and reduced risk of financial distress.

Liquidity Ratio Summary

Liquidity Score : 5.04

The company's liquidity position presents a mixed picture. While quick ratios suggest an ability to meet short-term obligations, very low cash and operating cash flow ratios are concerning. This indicates a potential struggle to cover immediate liabilities with available cash or cash generated from operations. The chemical industry often requires maintaining adequate liquidity for raw material procurement and operational expenses. Improving cash management and optimizing working capital could enhance financial stability.