Ashiana Housing Ltd

Growth Ratio Summary

Growth Score : 4.80

Ashiana Housing shows strong revenue and asset growth, but struggles with profitability growth. The company has demonstrated substantial expansion in its revenue and asset base. However, declines in operating profit, EPS, and net income growth require attention. Balancing growth initiatives with strategies to enhance profitability will be crucial for sustainable long-term success.

Financial Ratio Summary

Financial Score : 4.60

The company's financial ratios present a mixed performance. The company does not provide adjusted EPS. Cash earnings per share, book value per share, and dividend per share are low, and capital expenditure is zero. It may need to focus on improving profitability and shareholder returns.

Profitability Ratio Summary

Profitability Score : 6.40

Ashiana Housing's profitability ratios present a mixed performance. While gross profit margin, return on capital employed, and operating margin are strong, return on equity, return on assets, and net margin are low. The company demonstrates strength in generating profit from its operations and capital investments. However, it needs to enhance its efficiency in utilizing equity and assets to improve overall profitability.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company's efficiency ratios present a mixed picture. While the days sales in inventory and receivable days are high, the capital turnover ratio is low, suggesting underutilization of assets in generating revenue. Improving asset utilization could lead to increased revenue generation and better overall efficiency. This suggests that the company is not efficiently using its assets to generate sales.

Coverage Ratio Summary

Coverage Score : 6.80

Ashiana Housing demonstrates strong interest coverage, indicating its ability to meet its interest obligations comfortably. However, the company does not provide dividends so the equity dividend coverage is low. This suggests financial stability and the capacity to handle its debt obligations, but dividend investors might be discouraged.

Solvency Ratio Summary

Solvency Score : 10.00

The company demonstrates strong solvency. The absence of debt relative to equity and assets provides a stable financial structure. The equity ratio indicates that the company relies on equity for its financing, limiting financial risk associated with debt. This approach can offer stability but might constrain growth opportunities if strategic debt financing could be beneficial.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position is weak. Low current, quick, and cash ratios suggest the company might face difficulties in meeting its short-term obligations. While a low operating cash flow ratio can be a concern, it might reflect specific accounting practices or business models within the real estate industry where cash flows can be uneven due to project-based revenues. This necessitates careful monitoring of short-term liabilities and cash management strategies.