Balkrishna Paper Mills Ltd

Growth Ratio Summary

Growth Score : 6.00

Balkrishna Paper Mills shows a mixed growth performance. While the Asset and Net Income Growth Rates indicate expansion and increased profitability, negative Revenue and EPS Growth Rates signal challenges in sales and earnings. The Operating Profit Growth Rate shows whether the company is able to control the cost. Balancing asset growth with revenue and earnings improvements is crucial for sustainable growth. The company needs to focus on strategies to boost revenue and improve earnings to ensure continued expansion is profitable.

Financial Ratio Summary

Financial Score : 3.60

The financial ratios present a mixed view of the company's financial health. Negative Adjusted and Cash Earnings Per Share indicate losses. The negative Book Value further underscores financial challenges. However, Capital Expenditures indicates ongoing investments in its business. Improving earnings and strengthening the book value are essential for long-term financial stability.

Profitability Ratio Summary

Profitability Score : 3.60

Balkrishna Paper Mills' profitability ratios indicate significant weaknesses. Negative Gross Profit, Operating, and Net Margins suggest operational inefficiencies and losses. The Return on Assets (ROA) indicates that the company is struggling to generate profit from its assets. However, Return on Equity showing increase in profit. Addressing these issues is essential for improving the company's financial performance.

Efficiency Ratio Summary

Efficiency Score : 5.00

The company shows mixed efficiency. While a high Receivables Turnover Ratio indicates effective credit and collection policies, the very low Inventory Turnover and extended Days Sales in Inventory suggest challenges in inventory management. The Receivable Days, showing the average time it takes to collect receivables, also plays a role in assessing the company's overall efficiency. Improving inventory turnover and reducing receivable days would enhance operational efficiency and free up working capital.

Coverage Ratio Summary

Coverage Score : 2.00

The coverage ratio highlights a key area of concern for Balkrishna Paper Mills. A low Interest Coverage Ratio indicates that the company struggles to meet its interest obligations. This situation could result in financial strain and increased risk of default. Improving earnings and managing debt levels are crucial to strengthening the company's ability to cover its interest expenses.

Solvency Ratio Summary

Solvency Score : 6.36

Assessing Balkrishna Paper Mills' solvency reveals a complex financial structure. While the high Debt to Equity Ratio might indicate a high reliance on debt, the Interest Coverage Ratio suggests a moderate capacity to meet its interest obligations. The Debt Ratio indicates the proportion of the company's assets that are financed by debt. The interplay of these factors suggests a need for careful monitoring of debt levels and interest expenses to maintain financial stability. Balancing debt and equity will be crucial for its long-term solvency.

Liquidity Ratio Summary

Liquidity Score : 0.00

The company's liquidity position is concerning, reflecting difficulties in meeting its short-term obligations. Low current, quick, and cash ratios indicate that the company might struggle to convert its assets into cash to cover its immediate liabilities. This situation could lead to increased financial risk and reduced operational flexibility. The operating cash flow ratios, further emphasizing liquidity constraints, suggest potential issues in generating sufficient cash from its core business activities. This situation demands immediate attention to improve the company's ability to manage its short-term financial health.