Growth Ratio Summary

Growth Score : 10.00

Arabian Petroleum shows excellent growth across all measured metrics. Revenue, operating profit, EPS, asset, and net income growth rates indicate a strong upward trend in the company's performance. This reflects successful strategic initiatives and effective management. This positions the company well for future expansion and market leadership.

Financial Ratio Summary

Financial Score : 4.00

The financial ratios reveal some areas of concern for the company. While capital expenditures are well-managed, the adjusted earnings per share, cash earnings per share, book value per share, and dividend per share are weak. This suggests potential issues with profitability and shareholder returns. This may require a strategic review of financial policies to improve shareholder value.

Profitability Ratio Summary

Profitability Score : 10.00

Arabian Petroleum demonstrates excellent profitability across all measured ratios. Gross profit margin, return on capital employed, return on equity, return on assets, operating margin, and net margin all indicate strong financial performance. This reflects efficient operations and effective management. This positions the company well for sustainable growth and competitive advantage.

Efficiency Ratio Summary

Efficiency Score : 7.33

The company shows good efficiency in managing its assets, but there are areas for improvement. The fixed asset turnover and days sales in inventory ratios are strong, indicating efficient use of fixed assets and inventory management. However, the receivables turnover ratio and receivable days are average, suggesting that the company could improve its collection process. The capital turnover ratio is weak, indicating potential inefficiency in utilizing its overall capital.

Coverage Ratio Summary

Coverage Score : 5.60

The company's coverage ratios present a mixed picture. The interest coverage ratio is good, suggesting that the company can comfortably meet its interest obligations. However, the equity dividend coverage ratio is poor, indicating that the company does not have sufficient earnings to cover potential dividend payments. This may reflect a decision not to pay dividends or low profitability in certain periods.

Solvency Ratio Summary

Solvency Score : 10.00

Arabian Petroleum demonstrates excellent solvency. All measured ratios, including debt ratio, debt-to-equity ratio, equity ratio and debt to asset ratio indicate a very strong financial position. This suggests a low risk of financial distress and a solid capital structure. This provides a stable foundation for future growth and resilience against economic downturns.

Liquidity Ratio Summary

Liquidity Score : 4.26

The company's liquidity position needs attention. While the quick ratio is average, the current and operating cash flow ratios are weak, and the cash ratio is poor. This suggests potential difficulties in meeting short-term obligations using its most liquid assets. However, the slightly above average quick ratio indicates the company has some liquid assets to cover immediate liabilities.