Growth Ratio Summary

Growth Score : 2.00

The company's growth ratios indicate a concerning trend, with all metrics scoring poorly. This suggests that the company is struggling to expand its revenue, profits, and assets. The low growth rates can deter investors and raise concerns about the company's long-term viability. The weighted average calculation method emphasizes the consistent lack of growth over the past few years.

Financial Ratio Summary

Financial Score : 3.60

The company's financial ratios present a mixed scenario. While capital expenditures are managed well, indicating investments in future growth, the adjusted earnings per share, cash earnings per share, book value per share, and dividend per share are low, suggesting challenges in profitability and shareholder value. This mixed performance indicates areas of strength and weakness in the company's financial management. The weighted average calculation method reflects this variability in financial performance over the past few years.

Profitability Ratio Summary

Profitability Score : 2.00

The company's profitability ratios indicate significant challenges, with all metrics scoring poorly. This suggests that the company is struggling to generate profits from its sales, assets, and capital employed. The low profitability can deter investors and raise concerns about the company's long-term viability. The weighted average calculation method emphasizes the consistent lack of profitability over the past few years.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company's efficiency ratios present a mixed picture. While days sales in inventory and receivable days are managed well, indicating efficient working capital management, the turnover ratios for fixed assets, inventory, receivables, and capital are low, suggesting underutilization of assets and capital. This mixed performance indicates areas of strength and weakness in the company's operational efficiency. The weighted average calculation method reflects this variability in efficiency over the past few years.

Coverage Ratio Summary

Coverage Score : 2.00

The coverage ratios suggest that the company may face challenges in meeting its interest and dividend obligations. The low scores indicate potential financial strain, especially if earnings decline or interest rates rise. The weighted average calculation method emphasizes the consistent weakness in coverage over the past few years.

Solvency Ratio Summary

Solvency Score : 8.00

Esab India Ltd demonstrates a strong position in terms of solvency, indicating a low level of debt. While very low debt can be seen as financially conservative, it might also suggest that the company is not leveraging debt to finance growth opportunities. The balance between equity and assets is not optimal which could indicate underutilization of financial resources. The weighted average calculation method highlights the consistent financial strategy in maintaining low debt levels.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position shows significant challenges. With all liquidity ratios scoring poorly, it indicates potential difficulties in meeting short-term obligations. This can impact the company's operational flexibility and may raise concerns among investors and creditors. The ratios suggest the company might struggle to convert its current assets into cash quickly. The weighted average calculation method highlights that recent performance has not been adequate to improve these ratios.