Growth Ratio Summary

Growth Score : 8.80

Eureka Forbes exhibits remarkable growth across several key metrics. Exceptional revenue, EPS, asset, and net income growth rates indicate strong market performance and investment returns. However, negative operating profit growth raises concerns about profitability sustainability. While the company experiences impressive expansion, attention to operational efficiency is needed to ensure balanced growth, as calculated using a weighted average of recent years, with the current year weighted most heavily.

Financial Ratio Summary

Financial Score : 2.40

The company's financial ratios reveal areas needing attention. Low adjusted EPS, cash EPS, and book value per share suggest challenges in financial performance and shareholder value. Minimal dividend payouts and high capital expenditures, relative to thresholds, indicate limited returns to investors. While the company is investing in its future, current financial metrics reflect underlying challenges that require strategic focus, as calculated using a weighted average of recent years, with the current year weighted most heavily.

Profitability Ratio Summary

Profitability Score : 7.20

Eureka Forbes exhibits a mix of strong and weak profitability metrics. High gross profit and operating margins indicate effective cost management and pricing strategies. Strong returns on equity and net margin also contribute positively. However, low returns on capital employed and assets reflect inefficient capital utilization, indicating potential for better asset management. While the company demonstrates good profitability in certain areas, improvements in asset efficiency are needed, as calculated using a weighted average of recent years, with the current year weighted most heavily.

Efficiency Ratio Summary

Efficiency Score : 7.33

The company's efficiency ratios present a mixed picture. Strong receivables and capital turnover indicates effective credit and asset utilization. Inventory turnover is reasonably good, suggesting decent inventory management. However, a low fixed asset turnover ratio indicates underutilization of fixed assets. This mixed performance suggests that while certain operational aspects are efficient, there are areas where asset management could be improved, as calculated using a weighted average of recent years, with the current year weighted most heavily.

Coverage Ratio Summary

Coverage Score : 6.80

The company's coverage ratios paint a mixed picture. A strong interest coverage ratio indicates a solid ability to meet interest obligations. However, a very low equity dividend coverage ratio suggests limited capacity to cover dividends with available equity. While the company manages its interest payments well, its ability to provide equity dividends is constrained, as calculated using a weighted average of recent years, with the current year weighted most heavily.

Solvency Ratio Summary

Solvency Score : 10.00

Eureka Forbes demonstrates excellent solvency. Low debt and high equity ratios suggest a conservative and stable financial structure. This indicates a strong ability to meet long-term obligations and financial resilience. The company benefits from a solid equity base and minimal reliance on debt, enhancing its financial stability. This financial stability supports long-term growth and cushions against economic downturns, as calculated using a weighted average of recent years, with the current year weighted most heavily.

Liquidity Ratio Summary

Liquidity Score : 2.40

The company's liquidity position reveals some challenges. Current, quick, and cash ratios are low, indicating potential difficulties in meeting short-term obligations. Reliance on current assets may strain immediate cash needs. However, a slightly better operating cash flow ratio suggests some capacity to generate cash from operations, which could mitigate liquidity pressures. While the company might face short-term financial constraints, operational cash generation provides a buffer, as calculated using a weighted average of recent years, with the current year weighted most heavily.