Cambridge Technology Enterprises Ltd

Growth Ratio Summary

Growth Score : 4.80

The company's growth ratios show a mixed performance. While revenue and asset growth rates are positive, the operating profit, EPS, and net income growth rates are negative, indicating potential challenges in sustaining profitable growth. The company has been growing its revenue and assets, its profitability metrics are declining. Implementing strategies to improve profitability and manage expenses could enhance the company's long-term growth prospects.

Financial Ratio Summary

Financial Score : 2.00

The company's financial ratios indicate a concerning financial performance. The adjusted EPS and cash EPS are negative, suggesting the company is not generating sufficient earnings. The book value per share is low, indicating limited equity value. There are no dividend payments, reflecting the company's financial constraints. Capital expenditures are high, potentially straining the company's cash flow. The company needs to improve earnings, manage expenses, and optimize capital allocation to enhance its financial health.

Profitability Ratio Summary

Profitability Score : 2.00

The company's profitability ratios indicate significant financial challenges. The gross profit margin is negative, suggesting the company is selling products or services at a loss. The ROCE, ROE, and ROA are also negative, indicating the company is not generating returns on its capital, equity, or assets. The operating and net margins are negative, further highlighting the company's poor profitability. The company needs to improve its pricing strategies, reduce costs, and optimize asset utilization to restore profitability.

Efficiency Ratio Summary

Efficiency Score : 4.00

The company's efficiency ratios present a mixed picture. The fixed asset turnover ratio suggests the company is not generating enough revenue from fixed assets. The inventory turnover ratio is low, indicating potential issues with inventory management. The receivables turnover ratio is also low, suggesting challenges in collecting payments from customers. The Receivable days represent that the company is taking time to collect payments. The capital turnover ratio is low, highlighting inefficiencies in utilizing capital. The company needs to improve its asset utilization and working capital management.

Coverage Ratio Summary

Coverage Score : 2.00

The company's coverage ratios indicate potential challenges in meeting its debt obligations. The interest coverage ratio is low, suggesting difficulties in covering interest expenses. The equity dividend coverage ratio is also low, indicating a limited ability to cover dividend payments with equity. The company needs to improve its earnings and cash flow to ensure it can meet its financial obligations.

Solvency Ratio Summary

Solvency Score : 8.40

The company's solvency ratios indicate a moderately stable financial structure. The debt and debt-to-equity ratios suggest a reasonable level of debt relative to its equity and assets. The equity ratio shows a good proportion of equity in the company's capital structure. The debt-to-asset ratio further supports the company's ability to meet its long-term obligations. The company's sound financial structure provides a buffer against financial distress.

Liquidity Ratio Summary

Liquidity Score : 6.96

The company shows a mixed liquidity profile. The current and quick ratios suggest an adequate ability to meet short-term obligations. The cash ratio indicates a moderate proportion of liquid assets on hand. However, the operating cash flow ratio is low, indicating potential challenges in generating sufficient cash from operations to cover current liabilities. The company has an adequate ability to cover its short-term liabilities with its liquid assets.