Growth Ratio Summary

Growth Score : 2.00

AU Small Finance Bank's growth ratios are a cause for concern. Revenue, operating profit, EPS, asset, and net income growth rates are all poor, indicating the company is facing challenges in expanding its business. The company needs to explore strategies to stimulate growth and improve market positioning.

Financial Ratio Summary

Financial Score : 3.60

The financial ratios for AU Small Finance Bank present a somewhat concerning picture. Adjusted EPS, cash EPS, and book value per share are poor, signaling challenges in earnings and equity growth. However, capital expenditures are excellent, suggesting investments in future growth. Overall, there is a need to improve earnings and equity to enhance financial performance.

Profitability Ratio Summary

Profitability Score : 2.00

AU Small Finance Bank's profitability ratios are weak, signaling significant challenges in generating profits. Gross profit, return on capital employed, return on equity, return on assets, operating margin, and net margin are all poor. The bank needs to improve its profitability by enhancing revenue, controlling costs, and improving asset utilization.

Efficiency Ratio Summary

Efficiency Score : 4.67

The efficiency ratios for AU Small Finance Bank present a mixed picture. Days sales in inventory and receivable days are excellent, indicating effective management of inventory and collections. However, fixed asset and capital turnover ratios are poor, suggesting inefficient use of assets. Overall, there is a need to improve asset utilization to enhance operational efficiency.

Coverage Ratio Summary

Coverage Score : 2.00

The coverage ratios for AU Small Finance Bank are weak. The interest and equity dividend coverage ratios are poor, raising concerns about the company's ability to meet its debt and dividend obligations. Enhanced earnings and cash flow are needed to improve these ratios and ensure financial stability.

Solvency Ratio Summary

Solvency Score : 8.00

AU Small Finance Bank demonstrates strong solvency metrics. The debt and debt to asset ratios are excellent, indicating a conservative approach to debt usage. However, the equity ratio is poor, indicating that the company may have limited equity to absorb potential losses. This mixed picture suggests a need to balance debt and equity to maintain long-term financial stability.

Liquidity Ratio Summary

Liquidity Score : 2.00

The liquidity position of AU Small Finance Bank is a concern, as reflected in the low score. The current, quick, and cash ratios are poor, signaling potential difficulties in meeting short-term obligations. While a conservative approach to liquidity can sometimes limit growth opportunities, the current levels suggest a need for better management of current assets and liabilities to ensure smooth operations. The operating cash flow ratio also indicates poor cash generation from operations, further straining liquidity.