Chaman Metallics Ltd

Growth Ratio Summary

Growth Score : 6.80

The growth ratios present a mixed picture. While revenue and asset growth are strong, indicating expansion and investment, declines in operating profit and earnings per share raise concerns about profitability. The company's net income also shows positive growth. Overall this ratio has both pros and cons.

Financial Ratio Summary

Financial Score : 2.40

The financial ratios indicate a mixed performance. While cash EPS suggests positive cash generation per share, adjusted EPS is low. Book value per share is also low, and there are no dividend payouts, but Capital Expenditures are high This mixed performance suggests a need for improved earnings and shareholder returns.

Profitability Ratio Summary

Profitability Score : 9.80

The profitability ratios demonstrate strong financial performance. Gross profit margin, ROCE, ROE, operating margin, and net margin all reflect high profitability. This indicates efficient operations and effective management of resources. Maintaining this level of profitability is crucial for sustained financial health.

Efficiency Ratio Summary

Efficiency Score : 7.67

The efficiency ratios demonstrate strong operational performance. The fixed asset turnover ratio indicates effective utilization of fixed assets, and the inventory turnover ratio suggests efficient inventory management. The receivables turnover ratio is exceptionally high, reflecting quick collection of receivables, while the days sales in inventory ratio indicates a reasonable inventory holding period. However, the capital turnover ratio is low, suggesting inefficient use of overall capital. Overall the company seems to be doing good.

Coverage Ratio Summary

Coverage Score : 6.80

The coverage ratios show mixed performance. The interest coverage ratio indicates a good ability to cover interest expenses with earnings, but the equity dividend coverage ratio is very low due to the absence of dividend payouts. overall this ratio has both pros and cons.

Solvency Ratio Summary

Solvency Score : 6.80

The solvency ratios suggest a moderate financial leverage. The debt and debt-to-equity ratios indicate a balanced use of debt, while the equity ratio reflects a reasonable proportion of equity financing. However, the debt-to-asset ratio shows a relatively high proportion of assets financed by debt. This mixed performance indicates a need for careful monitoring of debt levels to ensure long-term financial stability.

Liquidity Ratio Summary

Liquidity Score : 6.64

The liquidity position shows varied performance. While the quick ratio suggests a good ability to meet short-term obligations with its most liquid assets, the current ratio indicates an adequate capacity to cover current liabilities. However, the cash ratio reflects very limited immediate cash availability, and the negative operating cash flow ratio indicates operational challenges in generating cash. This mixed performance suggests a need for improved cash management strategies.