Growth Ratio Summary

Growth Score : 2.00

The company's growth ratios indicate significant challenges. Negative growth rates across revenue, operating profit, earnings per share, assets, and net income suggest a concerning trend of business contraction. These declines could stem from various factors, including market competition, changing consumer preferences, or internal operational issues. The consistent negative growth across multiple metrics raises red flags about the company's future sustainability and ability to compete effectively in the market. Implementing strategic initiatives to revitalize growth and address underlying issues is critical for the company's long-term viability.

Financial Ratio Summary

Financial Score : 5.40

The company's financial ratios present a mixed picture. While the book value per share is reasonably strong, suggesting a solid asset base, the adjusted and cash earnings per share are only average, indicating moderate profitability. The dividend per share is also average, reflecting a modest return to shareholders. However, the high capital expenditures suggest significant investments in the company's future growth, though this may strain current cash flows. Balancing these investments with earnings and shareholder returns will be crucial for sustained financial health.

Profitability Ratio Summary

Profitability Score : 9.40

The company shows strong profitability, indicating efficient operations and effective cost management. The excellent gross profit margin, ROCE, ROE, operating margin, and net margin demonstrate the company's ability to generate profits from its sales and investments. However, the return on assets (ROA) is on the lower end, suggesting there might be room to improve asset utilization. Overall, the company's profitability ratios reflect its ability to consistently generate profits and deliver value to its stakeholders.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company demonstrates mixed efficiency in its operations. While the receivable turnover ratio and receivable days are very efficient, indicating effective credit and collection policies, other efficiency metrics raise concerns. The fixed asset and capital turnover ratios suggest underutilization of assets, while the inventory turnover ratio and days sales in inventory ratio point to potential issues in inventory management. These inefficiencies could lead to higher costs, reduced profitability, and slower cash conversion cycles. Optimizing asset utilization and inventory management could significantly enhance the company's operational performance.

Coverage Ratio Summary

Coverage Score : 8.00

The company's coverage ratios reflect a reasonable capacity to meet its interest and dividend obligations. The interest coverage ratio suggests the company can comfortably cover its interest expenses, while the equity dividend coverage ratio indicates adequate coverage for dividend payments to shareholders. These coverage ratios provide confidence in the company's ability to manage its financial obligations and maintain investor confidence. Consistent performance in these ratios supports the company's financial stability and its attractiveness to investors seeking reliable returns.

Solvency Ratio Summary

Solvency Score : 9.00

The company exhibits a strong solvency position, indicating a robust financial structure. The debt and debt-to-equity ratios suggest a low reliance on debt financing, which reduces financial risk. While the equity ratio is average, it still reflects a substantial portion of assets financed by equity. The low debt-to-asset ratio further confirms that the company's assets are primarily funded by equity rather than debt. This conservative approach to financing provides stability and resilience, enabling the company to withstand economic downturns and pursue growth opportunities with less financial strain.

Liquidity Ratio Summary

Liquidity Score : 2.40

The company's liquidity position raises concerns. While a higher current ratio is generally favorable, the extremely low quick and cash ratios suggest potential difficulties in meeting short-term obligations using the most liquid assets. The operating cash flow ratio provides a slightly better outlook, indicating some ability to cover current liabilities with operating cash flow. Low liquidity ratios can restrict a company's flexibility in managing unexpected expenses or investment opportunities. This situation warrants careful monitoring to ensure the company can maintain its financial commitments.