Bharat Gears Ltd

Growth Ratio Summary

Growth Score : 2.00

The company's growth metrics are weak, indicating significant challenges in expanding its business. The negative growth rates in revenue, operating profit, EPS, assets, and net income suggest the company is facing difficulties in sustaining and scaling its operations. The company has been facing a lot of difficulties and has been unable to grow its business.

Financial Ratio Summary

Financial Score : 4.00

The company's financial metrics present a mixed picture. While capital expenditures are well-managed, adjusted EPS, cash EPS, and book value per share are concerning. There has been an issue with adjusted EPS, cash EPS, and book value per share. The absence of dividends further impacts investor returns.

Profitability Ratio Summary

Profitability Score : 9.60

The company demonstrates strong profitability, driven by high gross profit, ROCE, ROE, and operating and net margins. The company has been generating good profits and returns. However, a average ROA score indicates that there are average returns on assets, company needs to increase its return on assets.

Efficiency Ratio Summary

Efficiency Score : 5.33

The company shows a good efficiency in using its capital, but other efficiency metrics are weak. The high capital turnover ratio indicates effective use of capital to generate revenue, but the poor fixed asset, inventory, and receivables turnover ratios suggest problems in managing assets. The company has been able to generate good revenue with its capital, but has been struggling in managing its assets.

Coverage Ratio Summary

Coverage Score : 3.20

The company's coverage ratios are average, suggesting it can meet its interest obligations, but there's limited ability to cover dividends. The interest coverage ratio is low, indicating a potential risk in managing debt. The company has been able to cover its debts but is not able to cover dividends.

Solvency Ratio Summary

Solvency Score : 10.00

The company's solvency position is strong, suggesting a solid financial structure and low risk of long-term default. This is supported by a high equity ratio and low debt ratios. The company has been maintaining its equity, meaning that it has been managing its assets well. This financial stability allows for flexibility in strategic decisions and investments.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position is weak, indicating potential difficulties in meeting its short-term obligations. This is reflected in the poor current, quick, and cash ratios. While a low operating cash flow ratio points towards relying on external funding or asset sales, it could pose risks if market conditions become unfavorable. The company needs to improve its working capital management to ensure smooth operations and avoid liquidity crunches.