Continental Seeds and Chemicals Ltd

Growth Ratio Summary

Growth Score : 8.80

Continental Seeds and Chemicals Ltd demonstrates strong growth in several key areas. The revenue growth rate, EPS growth, asset growth rate, and net income growth rate are all very high, indicating significant expansion and improved profitability. However, the operating profit growth rate is negative, suggesting potential challenges in maintaining profitability as the company grows. While overall growth is positive, attention should be paid to improving operating profit margins.

Financial Ratio Summary

Financial Score : 4.00

Continental Seeds and Chemicals Ltd's financial ratios reveal mixed results. While capital expenditures are well-managed, the adjusted earnings per share, cash earnings per share, book value per share and dividend per share are low. The company's earnings and shareholder value metrics need improvement. While there is effective investment in capital assets, the core earnings metrics are not impressive.

Profitability Ratio Summary

Profitability Score : 8.40

Continental Seeds and Chemicals Ltd demonstrates mixed profitability. The return on capital employed (ROCE), return on equity (ROE), operating margin, and net margin are good, indicating efficient capital utilization and strong profitability. However, the gross profit margin is negative, indicating that the company's cost of goods sold exceeds its revenue. The return on assets (ROA) is average, suggesting that the company's assets are not generating substantial profits. While some areas are strong, the negative gross profit margin raises concerns.

Efficiency Ratio Summary

Efficiency Score : 8.67

Continental Seeds and Chemicals Ltd demonstrates mixed efficiency. The inventory turnover ratio and receivables turnover ratio are high, indicating efficient inventory and receivables management. The days sales in inventory and receivable days are also relatively low, suggesting quick conversion of inventory and receivables into cash. However, the fixed asset turnover ratio and capital turnover ratio are low, indicating less efficient utilization of fixed assets and capital. While some areas are efficient, there's room to improve asset and capital usage.

Coverage Ratio Summary

Coverage Score : 5.60

Continental Seeds and Chemicals Ltd demonstrates mixed coverage ability. The interest coverage ratio is good, indicating a reasonable ability to cover interest expenses with earnings. However, the equity dividend coverage ratio is zero, indicating that the company does not have sufficient earnings to cover potential dividend payments to equity holders. While interest obligations are manageable, the company's ability to provide dividends is limited.

Solvency Ratio Summary

Solvency Score : 10.00

Continental Seeds and Chemicals Ltd exhibits excellent solvency. The debt ratio and debt-to-equity ratio are very low, indicating minimal reliance on debt financing. The equity ratio is very high, reflecting a strong equity base. The debt-to-asset ratio is also low, indicating that the company's assets are primarily financed by equity. This suggests a very stable and secure financial structure, with a low risk of financial distress.

Liquidity Ratio Summary

Liquidity Score : 5.04

The liquidity position of Continental Seeds and Chemicals Ltd is mixed. The quick ratio indicates a reasonable ability to meet short-term obligations without relying on inventory, whereas the current ratio is average. However, the cash ratio and operating cash flow ratio point to potential difficulties in meeting immediate liabilities with cash and operating cash flows. While the quick ratio offers some reassurance, overall liquidity needs attention.