Arihant Capital Markets Ltd

Growth Ratio Summary

Growth Score : 10.00

The company demonstrates exceptional growth across all key metrics, including revenue, operating profit, earnings per share, assets, and net income. This robust growth indicates effective business strategies, strong market positioning, and efficient operations. The company is successfully expanding its business and increasing its profitability, creating significant value for its shareholders. This consistent growth momentum positions the company favorably for future success. The company has a good market position and efficient operations.

Financial Ratio Summary

Financial Score : 4.20

The company shows a moderate financial performance. While adjusted and cash earnings per share are reasonable, the book value per share is relatively low, and the dividend per share is quite modest. Capital expenditures are also moderate. This suggests that while the company is generating earnings, there might be room to enhance shareholder value through increased dividends or more effective capital deployment. The company is generating earnings but there is room to enhance shareholder value.

Profitability Ratio Summary

Profitability Score : 10.00

The company demonstrates excellent profitability, with high gross profit margin, return on capital employed, return on equity, return on assets, operating margin, and net margin. This indicates efficient operations, effective cost management, and strong pricing strategies. The company is generating substantial profits from its sales and investments, creating significant value for its stakeholders. The company is generating substantial profits.

Efficiency Ratio Summary

Efficiency Score : 3.67

The company exhibits mixed efficiency. The fixed asset turnover ratio is strong, indicating effective utilization of fixed assets. However, the inventory turnover and receivables turnover ratios are low, and the days sales in inventory and receivable days are high, suggesting challenges in managing inventory and collecting receivables. Capital turnover is also low, indicating inefficient use of capital. While some assets are efficiently used, there are areas where the company needs to improve asset management practices.

Coverage Ratio Summary

Coverage Score : 10.00

The company exhibits excellent coverage ratios, with a high-interest coverage ratio and equity dividend coverage ratio. This indicates a strong ability to meet its interest obligations and provide dividends to shareholders. The company's earnings comfortably cover its interest expenses, and its profits adequately support dividend payments, reflecting financial stability and shareholder-friendly policies. The company is financially stable and is able to provide dividends to shareholders.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits excellent solvency, characterized by a low debt ratio and debt-to-equity ratio, alongside a high equity ratio. This indicates a strong reliance on equity financing and a conservative approach to debt. The debt-to-asset ratio further confirms that a small portion of the company's assets are financed by debt. This financial structure provides a solid foundation for stability and growth, minimizing financial risk. The company has a good amount of assets and does not rely on debt for financing.

Liquidity Ratio Summary

Liquidity Score : 8.30

The company's liquidity position is generally healthy, supported by strong current and quick ratios, indicating a good ability to meet short-term obligations. The cash ratio also reflects a solid cash position. However, the operating cash flow ratio is relatively weak, suggesting potential difficulties in generating cash from core operations. While the company can comfortably cover its immediate liabilities, improving cash flow from operations would enhance its financial flexibility and stability.