Atmastco Ltd

Growth Ratio Summary

Growth Score : 6.00

The company demonstrates strong growth in operating profit, EPS, and assets, indicating positive business momentum. However, revenue and net income growth are areas of concern. While the company is expanding its operations and profitability, addressing the stagnation in revenue and net income is essential for sustained long-term growth. These areas should be looked at to have a even growth.

Financial Ratio Summary

Financial Score : 4.00

The company's financial metrics present a mixed picture. Capital Expenditures (CapEx) is a notable strength, indicating investment in future growth. However, Adjusted EPS, Cash EPS, Book Value Per Share, and DPS are areas of concern, suggesting potential challenges in generating shareholder value. While the company is investing in its asset base, improvements in earnings and shareholder returns are needed to enhance overall financial performance.

Profitability Ratio Summary

Profitability Score : 4.80

The company exhibits strong profitability, particularly in Return on Capital Employed (ROCE) and Return on Assets (ROA), indicating efficient use of capital and assets. However, Gross Profit Margin, Return on Equity (ROE), Operating Margin, and Net Margin are areas of concern. While the company is generating profits from operations, improvements in overall profitability margins and equity returns are needed to enhance financial performance.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company shows mixed results in efficiency. Days Sales in Inventory and Receivable Days are strengths, indicating efficient inventory and receivables management. However, Fixed Asset Turnover, Inventory Turnover, Receivables Turnover, and Capital Turnover are areas of concern, suggesting inefficient utilization of assets. While the company excels in certain aspects of working capital management, improvements in asset turnover could enhance overall operational performance.

Coverage Ratio Summary

Coverage Score : 4.40

The company's coverage ratios present a mixed outlook. The interest coverage ratio is adequate, indicating a reasonable ability to meet interest obligations. However, the equity dividend coverage ratio is low, reflecting a limited capacity to cover dividends with available equity. While the company can comfortably handle its interest payments, improving the dividend coverage ratio would enhance its financial flexibility and attractiveness to investors.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits a strong solvency position, primarily driven by a solid equity ratio and minimal debt. This indicates a low risk of financial distress and suggests that the company is well-funded by equity rather than debt. While a conservative approach to debt can limit financial risk, it may also constrain the company's ability to leverage opportunities for growth. This strong solvency provides a stable foundation for future operations.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position is a significant concern, as all liquidity ratios (Current, Quick, Cash, and Operating Cash Flow) indicate poor short-term financial health. This suggests potential difficulties in meeting immediate obligations. Without sufficient liquid assets, the company may struggle to pay its bills, invest in growth opportunities, or weather unexpected financial challenges. Addressing these liquidity issues is crucial for ensuring the company's operational stability.