Diensten Tech Ltd

Growth Ratio Summary

Growth Score : 4.80

The company has demonstrated high growth in revenue and assets, which is a positive sign. However, negative growth rates in operating profit, EPS, and net income are concerning. This indicates potential issues with profitability and operational efficiency. While the company is expanding, it needs to focus on improving its bottom-line performance to ensure sustainable growth. The high growth in revenue and assets needs to be supported by improvements in profitability to ensure long-term financial health.

Financial Ratio Summary

Financial Score : 2.80

The financial ratios indicate a mixed financial performance. The adjusted EPS and book value per share are below the required level. The company has not announced dividend which is not a good sign for company's growth. The capital expenditure indicates that the company is not making further investments in the business. The company needs to improve its financial performance to enhance its financial stability and growth prospects.

Profitability Ratio Summary

Profitability Score : 4.60

The profitability ratios present a mixed financial performance. While the gross profit margin and operating margin are positive, the ROCE, ROE, and net margin are not up to the mark. The company needs to improve its profitability to ensure its long-term financial health. Although gross and operating margins are good, the company needs to improve its overall profitability.

Efficiency Ratio Summary

Efficiency Score : 4.33

The efficiency ratios indicate mixed operational performance. A low fixed asset turnover ratio suggests inefficient use of fixed assets, while the inventory turnover ratio is also low. Days sales in inventory is very high, implying slow-moving inventory. On a positive note, receivable days indicates efficient collection of accounts receivable. Overall, there are significant inefficiencies in asset utilization that need to be addressed to improve overall operational efficiency.

Coverage Ratio Summary

Coverage Score : 2.00

The coverage ratios indicate that the company has a limited ability to cover its interest expenses and equity dividends. The interest coverage ratio is very low, suggesting a high risk of default on debt obligations. Similarly, the equity dividend coverage ratio is also low, indicating that the company is not generating sufficient earnings to cover its dividend obligations. Both the interest coverage and equity dividend coverage are at a concerning level.

Solvency Ratio Summary

Solvency Score : 5.60

The company's solvency ratios present a mixed outlook. A high debt-to-asset ratio suggests that a significant portion of the company's assets is financed by debt, which could increase financial risk. On the other hand, the company's debt ratio and equity ratio are at an average level. The high debt to equity ratio is a concern, and the company needs to reduce its debt levels to improve its financial stability.

Liquidity Ratio Summary

Liquidity Score : 6.56

The company's liquidity position reflects a mixed performance. While quick ratios suggest a strong ability to meet short-term obligations with its most liquid assets, the cash ratio indicates a lower proportion of cash holdings. The operating cash flow ratio is a concern, reflecting negative cash flow from operations. On the positive side, current and quick ratio indicates good financial health, but the company needs to improve its operating cash flow to ensure it can meet its short-term obligations effectively.