Digjam Ltd

Growth Ratio Summary

Growth Score : 4.00

The company's growth ratios present a mixed performance. While it shows strong revenue growth, there are declines in operating profit, EPS, asset growth, and net income growth. The high revenue growth is a positive indicator, suggesting increased sales. However, the declines in other growth metrics raise concerns about the sustainability and profitability of this growth. These mixed results suggest that the company needs to address its operational efficiencies and cost management to translate revenue growth into overall financial improvement.

Financial Ratio Summary

Financial Score : 3.60

The company's financial ratios show a mixed performance. While capital expenditures are positive, adjusted EPS, cash EPS, and book value per share are negative, and there are no dividends per share. The positive capital expenditures indicate investments in the company's future. However, the negative EPS and book value per share suggest challenges in generating profits and maintaining equity value. The absence of dividends reflects a lack of returns for shareholders. Overall, there are significant financial challenges.

Profitability Ratio Summary

Profitability Score : 2.00

The company's profitability ratios indicate significant challenges in generating profits. The gross profit margin, ROCE, ROE, ROA, operating margin, and net margin are all negative, suggesting the company is struggling to generate profits from its sales and assets. These negative profitability metrics reflect difficulties in managing costs and generating returns. The company needs to address these issues to improve its financial performance.

Efficiency Ratio Summary

Efficiency Score : 2.33

The company's efficiency ratios indicate challenges in utilizing its assets effectively. The fixed asset turnover ratio is very low, suggesting the company is not generating much revenue from its fixed assets. Inventory turnover is also low, indicating slow-moving inventory. The receivables turnover ratio and receivable days suggest issues in collecting payments. The capital turnover ratio is low, reflecting inefficient use of capital. These inefficiencies could hinder the company's ability to maximize profits and returns.

Coverage Ratio Summary

Coverage Score : 2.00

The company's coverage ratios indicate difficulties in meeting its interest and dividend obligations. The interest coverage ratio is negative, suggesting the company is not generating enough earnings to cover its interest expenses. The equity dividend coverage ratio is also low, indicating a limited ability to cover dividend payments. These factors suggest the company may face financial strain in managing its debt and returning value to shareholders.

Solvency Ratio Summary

Solvency Score : 3.20

The company's solvency ratios present a mixed picture of its long-term financial stability. The debt ratio and debt-to-equity ratio indicate high levels of debt relative to assets and equity, suggesting a reliance on borrowed funds. The equity ratio is low, reflecting a smaller proportion of equity financing. However, the debt-to-asset ratio suggests a capability to manage assets effectively. While the company has some strengths in asset management, the overall high debt levels present a risk to its long-term solvency.

Liquidity Ratio Summary

Liquidity Score : 5.04

The company's liquidity position shows a good ability to meet its short-term obligations. The current and quick ratios suggest that the company has sufficient liquid assets to cover its immediate liabilities. However, the low cash ratio indicates that the company relies less on cash and more on other current assets. The operating cash flow ratio is also low, suggesting that the company is not generating enough cash from its operations to cover short-term needs. This mix of factors presents both opportunities and challenges in managing the company's working capital.