Growth Ratio Summary

Growth Score : 10.00

Cholamandalam Financial Holdings Ltd exhibits strong growth across various metrics. High revenue growth indicates increasing market demand and effective sales strategies. Strong operating profit growth suggests improved operational efficiency and profitability. Robust earnings per share growth reflects enhanced shareholder value. Significant asset growth indicates expansion and investment in future opportunities. High net income growth signifies improved overall financial performance.

Financial Ratio Summary

Financial Score : 6.80

Cholamandalam Financial Holdings Ltd demonstrates strengths in financial performance, particularly in adjusted and cash earnings per share, as well as book value per share. However, the company faces challenges related to dividend per share and capital expenditures. These factors highlight the need for strategic financial management to sustain long-term growth and stability.

Profitability Ratio Summary

Profitability Score : 9.80

Cholamandalam Financial Holdings Ltd demonstrates strong profitability. High gross profit margin indicates effective cost management and pricing strategies. Strong return on capital employed and return on equity reflect efficient use of capital and equity to generate profits. High operating and net margins suggest effective operational management and profitability. Overall, the company's profitability ratios indicate financial strength and efficiency.

Efficiency Ratio Summary

Efficiency Score : 7.33

Cholamandalam Financial Holdings Ltd demonstrates mixed efficiency. The company excels in fixed asset and receivables turnover, indicating effective use of assets and efficient collection of revenues. However, its inventory turnover is zero, reflecting the nature of its financial services. The low capital turnover ratio suggests that the company is not generating substantial revenue from its capital investments. Balancing these aspects is crucial for optimizing overall efficiency.

Coverage Ratio Summary

Coverage Score : 7.60

The company's coverage ratios present a mixed picture. While the equity dividend coverage ratio is excellent, indicating a strong ability to cover dividends with available equity, the interest coverage ratio is moderate, suggesting a limited ability to cover interest expenses with earnings. Balancing these aspects is crucial for maintaining financial stability and investor confidence.

Solvency Ratio Summary

Solvency Score : 2.80

Cholamandalam Financial Holdings Ltd faces significant solvency challenges. High debt and debt-to-equity ratios indicate a heavy reliance on borrowing, increasing financial risk. A low equity ratio reflects a small proportion of assets funded by equity, further amplifying the risk. The debt-to-asset ratio suggests that a substantial portion of the company's assets are financed by debt. These factors collectively point to a vulnerable financial structure.

Liquidity Ratio Summary

Liquidity Score : 7.14

The company's liquidity position showcases a contrast. The current and quick ratios suggest a strong ability to cover short-term liabilities with its current assets. However, the low cash ratio indicates a reliance on less liquid assets. Additionally, the negative operating cash flow ratio raises concerns about the company's ability to generate cash from its operations. The weighted average calculation emphasizes recent performance, highlighting the need for improved cash management.