Growth Ratio Summary

Growth Score : 6.00

Ashok Leyland has demonstrated strong growth in revenue and operating profit, indicating successful market strategies. However, the company has faced volatility in earnings per share and net income growth. Asset growth is robust, reflecting investment in future capabilities. The weighted average highlights the recent positive trends in revenue and operating profit.

Financial Ratio Summary

Financial Score : 6.60

The financial ratios present a mixed view, with average adjusted and cash earnings per share, and a moderate book value per share. Dividend per share is also moderate. The company is effectively managing its capital expenditures. These metrics reflect the company's earnings performance and shareholder returns, with the weighted average emphasizing the importance of recent earnings and dividend trends.

Profitability Ratio Summary

Profitability Score : 10.00

The profitability ratios indicate strong performance across various metrics. The company demonstrates good gross profit margin, return on capital employed, return on equity, return on assets, operating margin, and net margin. These ratios reflect the company's ability to generate profits from its operations and investments. The weighted average methodology underscores the impact of recent profitability trends on the overall assessment.

Efficiency Ratio Summary

Efficiency Score : 7.00

Ashok Leyland demonstrates strong efficiency in managing its receivables and inventory, as indicated by high turnover ratios and reasonable sales days in inventory. However, capital turnover is low, suggesting less efficient use of overall capital. Fixed asset turnover is average. The weighted average calculation emphasizes the recent improvements in receivables and inventory management.

Coverage Ratio Summary

Coverage Score : 5.20

The coverage ratios suggest moderate ability to cover interest expenses and equity dividends. While the interest coverage ratio is adequate, the equity dividend coverage ratio indicates less comfort in meeting dividend obligations. These ratios reflect the company's capacity to handle its financial obligations, with the weighted average highlighting the need for improved dividend coverage.

Solvency Ratio Summary

Solvency Score : 5.20

The company's solvency position presents a mixed outlook. While the debt to asset ratio is good, indicating a reasonable level of asset financing through debt, other metrics like the debt and equity ratios suggest a higher reliance on debt. This higher debt burden increases financial risk. The weighted average methodology underscores the impact of recent debt management practices on the overall solvency assessment.

Liquidity Ratio Summary

Liquidity Score : 6.14

The company's ability to meet its short-term obligations is a mixed bag. While the quick ratio suggests a strong position, the cash ratio and operating cash flow ratio indicate potential difficulties in quickly converting assets to cash and generating cash from operations. The current ratio reflects an average capacity to cover short-term liabilities. The weighted average calculation gives more weight to recent performance, highlighting the need for improved cash management strategies.