Growth Ratio Summary

Growth Score : 3.00

Electrotherm demonstrates mixed growth trends. Strong revenue and operating profit growth are encouraging signs of business expansion and improved operational efficiency. However, negative EPS and net income growth raise concerns about profitability and earnings quality. The asset growth rate indicates moderate expansion in the company's asset base. Addressing the factors impacting EPS and net income will be crucial for sustainable growth.

Financial Ratio Summary

Financial Score : 2.00

Electrotherm's financial ratios present a mixed picture. Positive adjusted and cash earnings per share (EPS) indicate profitability. However, negative book value per share and lack of dividend payments raise concerns about long-term financial health. High capital expenditures suggest ongoing investments, but their impact on overall financial health needs monitoring. Addressing the factors impacting book value and dividend payments will be important for improving investor confidence.

Profitability Ratio Summary

Profitability Score : 4.00

Electrotherm exhibits strong profitability. Excellent gross profit margin, ROCE, ROA, operating margin, and net margin indicate efficient operations and effective cost management. However, a low return on equity (ROE) suggests that the company is not effectively utilizing shareholder equity to generate profits. Addressing this aspect could further enhance the company's profitability and appeal to investors.

Efficiency Ratio Summary

Efficiency Score : 3.00

Electrotherm showcases mixed efficiency. High receivables turnover and efficient receivable days management are positives, indicating effective credit and collection policies. However, a low capital turnover ratio and moderate inventory turnover suggest potential inefficiencies in asset utilization and inventory management. The weighted averages, reflecting recent performance, highlight the need for improvements in these areas to optimize operational efficiency.

Coverage Ratio Summary

Coverage Score : 3.00

Electrotherm's coverage ratios present a mixed outlook. A strong interest coverage ratio suggests a good ability to meet interest obligations, which is a positive indicator of financial health. However, the equity dividend coverage ratio is low, indicating limited coverage for potential equity dividend payouts. This mixed performance highlights the need for a balanced approach to managing debt and equity obligations.

Solvency Ratio Summary

Solvency Score : 5.00

The company's solvency ratios indicate a strong financial structure. Negative debt ratios and debt-to-equity ratios, alongside a high equity ratio, suggest that the company has more assets than liabilities. This robust solvency position provides a solid foundation for future growth and stability. The weighted average calculation, considering both recent and past performance, confirms the company's ability to manage its long-term obligations effectively.

Liquidity Ratio Summary

Liquidity Score : 2.40

The company's liquidity position indicates potential challenges in meeting its short-term obligations. While the operating cash flow ratio provides some support, the current, quick, and cash ratios suggest limited liquid assets. This situation could restrict the company's ability to respond to unforeseen expenses or investment opportunities. The weighted average calculation, based on the last five years, highlights a consistent struggle to maintain adequate liquidity levels.