Bartronics India Ltd

Growth Ratio Summary

Growth Score : 2.00

The company's growth ratios are poor, indicating a decline in revenue, operating profit, earnings per share, assets, and net income. This suggests challenges in expanding the business and maintaining profitability. The company may need to reassess its strategies and explore new opportunities to stimulate growth. However, the IT sector is subject to rapid technological changes, which may affect growth prospects.

Financial Ratio Summary

Financial Score : 4.00

The company's financial ratios present a mixed picture. The adjusted earnings per share and book value per share are low, indicating potential challenges in profitability and asset valuation. However, the capital expenditures ratio is high, suggesting significant investments in capital assets. Effective management of earnings, asset valuation, and capital expenditures is crucial for long-term financial health.

Profitability Ratio Summary

Profitability Score : 6.00

The company's profitability ratios present a mixed picture. The gross profit margin, return on capital employed, and return on assets are low, indicating challenges in generating profits from sales, capital investments, and assets. However, the return on equity, operating margin, and net margin are very high, suggesting strong profitability relative to equity and sales. Effective management of costs, capital investments, and asset utilization is crucial for sustaining profitability.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company's efficiency ratios are mixed. The turnover ratios are low, suggesting that the company is not effectively using its assets to generate revenue. The days sales in inventory and receivable days ratios are very high, indicating inefficiencies in managing inventory and collecting receivables. Improving asset utilization and working capital management can boost overall efficiency.

Coverage Ratio Summary

Coverage Score : 4.40

The company's coverage ratios are adequate, indicating a reasonable ability to meet its interest obligations. However, the equity dividend coverage ratio is low, suggesting limited capacity to cover dividend payments with equity. Maintaining adequate coverage ratios is essential for financial stability and investor confidence.

Solvency Ratio Summary

Solvency Score : 6.80

The company's solvency position presents a mixed picture. The high debt ratio is offset by a very high Debt to Asset ratio. The equity ratio is very low. The company may face challenges in maintaining its long-term financial stability. Careful management of debt and equity is crucial for sustaining operations and growth.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position is weak, indicating potential challenges in meeting its short-term obligations. Low current, quick, and cash ratios suggest difficulties in converting assets into cash quickly. This could stem from slow-moving inventory or challenges in collecting receivables. On a positive note, the IT sector generally requires less investment in physical inventory, so this may not be a critical issue. However, maintaining adequate liquidity is essential for smooth operations and managing unforeseen expenses.