BPL Ltd

Growth Ratio Summary

Growth Score : 6.00

The company demonstrates strong revenue and asset growth, along with a significant increase in operating profit. However, earnings per share and net income growth are negative, indicating potential issues with profitability despite revenue gains. Overall, the company is expanding its operations, but profitability needs to catch up with revenue growth. The company has potential to grow, but profitability is a major concern.

Financial Ratio Summary

Financial Score : 2.40

The company's financial ratios indicate a mixed performance. While cash earnings per share are positive, adjusted earnings per share and book value per share are relatively low. The company is not paying dividends, and capital expenditures are high, suggesting significant investments. Overall, the company is making investments, but returns are not yet reflected in earnings. Recent capital expenditure may be a cause for concern.

Profitability Ratio Summary

Profitability Score : 9.20

The company's profitability ratios are generally strong, with good gross profit, ROCE, ROE, and operating and net margins. However, return on assets is relatively low, indicating potential inefficiencies in asset utilization. Overall, the company is profitable, but there is room to improve asset management. The company is in a very good shape in terms of profitability. The company can focus on improving its asset management.

Efficiency Ratio Summary

Efficiency Score : 5.00

The company's efficiency ratios present a mixed picture. Inventory management is strong, but fixed asset and capital turnover are low, indicating underutilization of assets. Receivable collection is also slow, suggesting potential issues with credit policies. Overall, there is room to improve asset utilization and working capital management. The company can focus on improving the turnover ratio to increase efficiency.

Coverage Ratio Summary

Coverage Score : 6.80

The company exhibits strong interest coverage, indicating a healthy ability to meet its interest obligations. However, the lack of equity dividend coverage is a notable weakness, suggesting that the company is not providing returns to its equity holders. The company is stable in terms of interest coverage. But the company is not providing returns to its equity holders.

Solvency Ratio Summary

Solvency Score : 10.00

The company's solvency position is very strong, characterized by low debt levels and a high proportion of equity. This indicates a stable financial structure and reduced risk of financial distress. The company has a solid foundation for future growth and stability. This implies that the company is not taking on too much debt. Future expansion of the company using debt might be difficult.

Liquidity Ratio Summary

Liquidity Score : 2.40

The company's liquidity position reflects potential challenges in meeting its short-term obligations. While there is adequate operating cash flow, the low current and quick ratios suggest limited liquid assets. This indicates a need for improved working capital management to ensure smoother operations. Depending on short-term obligations, it can cause significant concern to the company. Despite these challenges, the company is able to generate some cash from its operation.