Ashima Ltd

Growth Ratio Summary

Growth Score : 2.80

The growth ratios present a mixed picture. While the asset growth rate is strong, the negative revenue, operating profit, EPS, and net income growth rates are significant concerns. This suggests that while the company is expanding its asset base, it is struggling to generate revenue and profits. Addressing these growth challenges is crucial for long-term sustainability.

Financial Ratio Summary

Financial Score : 2.40

The financial ratios indicate significant challenges in key financial metrics. Low adjusted EPS, cash EPS, and book value per share, combined with no dividend per share, suggest weak financial performance. While capital expenditures are being made, they are not translating into improved financial results. Addressing these financial challenges is crucial for restoring investor confidence and improving the company's financial health.

Profitability Ratio Summary

Profitability Score : 8.20

The company's profitability ratios indicate a mixed performance. While gross profit margin, ROCE, ROE, and operating margin are strong, ROA is average, and net margin is poor. This suggests that the company is generating profit from its core operations. Improving ROA and net margin is essential for overall profitability.

Efficiency Ratio Summary

Efficiency Score : 2.67

The company's efficiency ratios indicate significant challenges in asset utilization. Low turnover ratios and high days sales in inventory suggest that the company is not effectively managing its assets to generate revenue. While the receivables turnover ratio is average, the overall efficiency performance highlights areas needing improvement to enhance operational performance.

Coverage Ratio Summary

Coverage Score : 4.40

The company's coverage ratios indicate a mixed ability to meet its interest and dividend obligations. While the interest coverage ratio is average, the equity dividend coverage ratio is poor, suggesting challenges in providing returns to shareholders. Improving both ratios is essential for maintaining financial stability and investor confidence.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits strong solvency, indicating a solid long-term financial structure. Low debt and high equity ratios suggest a conservative approach to financing, reducing financial risk. This financial stability provides a strong foundation for future growth and ensures the company can withstand economic downturns. The consistent performance across all solvency metrics reinforces the company's robust financial health.

Liquidity Ratio Summary

Liquidity Score : 7.98

The company's liquidity position is generally strong, indicating a good ability to meet its short-term obligations. High current and quick ratios suggest sufficient liquid assets. However, the negative operating cash flow ratio is a concern, indicating operational inefficiencies in generating cash. This mixed performance suggests that while the company has enough liquid assets, generating cash from operations needs improvement.