Ester Industries Ltd

Growth Ratio Summary

Growth Score : 4.80

The growth ratios present a highly inconsistent picture. While revenue and asset growth rates show positive momentum, the negative operating profit, EPS, and net income growth rates raise significant concerns. This mixed performance suggests the company is growing its top line but struggling to translate it into bottom-line profitability. The weighted average calculation highlights these conflicting trends. There is a need to improve profitability.

Financial Ratio Summary

Financial Score : 2.40

The financial ratios reveal significant weaknesses. Low adjusted EPS, cash EPS, book value per share, dividend per share, and substantial capital expenditures suggest the company is underperforming in key financial areas. These factors indicate challenges in creating shareholder value. The weighted average calculation emphasizes recent financial trends. Improving these ratios is essential for long-term financial health. The company's financial health is not good and needs to improve.

Profitability Ratio Summary

Profitability Score : 9.60

The profitability ratios indicate strong performance. High gross profit, ROCE, ROE, ROA, operating margin, and net margin reflect efficient operations and effective cost control. This suggests the company is highly profitable. The weighted average calculation provides stability to the assessment. Maintaining these ratios will be crucial for sustaining financial health. The company is maintaining its profits very well.

Efficiency Ratio Summary

Efficiency Score : 5.00

The efficiency ratios present a mixed view. While the receivables and inventory turnover ratios are average, the fixed asset and capital turnover ratios show underutilization of assets. This mixed performance suggests areas for improvement in operational efficiency. The weighted average calculation provides a comprehensive assessment. Optimizing asset utilization could significantly enhance overall efficiency. The company can improve its efficiency ratio by improving its assets.

Coverage Ratio Summary

Coverage Score : 7.60

The coverage ratios show a reasonable capacity to meet interest and dividend obligations. The interest coverage ratio is average, while the equity dividend coverage ratio is strong. This indicates the company can comfortably cover its dividend payments but may face some strain with interest expenses. The weighted average calculation provides a balanced perspective. The company is managing its payments well.

Solvency Ratio Summary

Solvency Score : 8.40

The company shows strong solvency. The debt, debt to equity, and equity ratios reflect a balanced capital structure, while the debt to asset ratio indicates effective asset management. This suggests the company is well-positioned to meet its long-term obligations. The weighted average calculation provides stability to the assessment. Maintaining this balance will be crucial for sustaining financial health. The company is in a good position to meet its long term liabilities.

Liquidity Ratio Summary

Liquidity Score : 4.68

The liquidity position suggests some challenges. While the quick ratio is average, the current, cash, and operating cash flow ratios indicate potential difficulties in meeting short-term obligations. This blended performance highlights the company's struggle to maintain sufficient liquid assets. The weighted average calculation emphasizes recent liquidity trends, influencing the overall score. Although not critical, improving these ratios could enhance the company's financial flexibility. The company might face difficulties in paying its current liabilities off.