Federal-Mogul Goetze (India) Ltd

Growth Ratio Summary

Growth Score : 10.00

The company exhibits very strong growth across multiple dimensions, including revenue, operating profit, earnings per share, assets, and net income. This indicates robust business expansion and effective strategic initiatives. This growth trajectory positions the company favorably for future success.

Financial Ratio Summary

Financial Score : 3.00

The company's financial metrics present a mixed view. While adjusted and cash earnings per share are at a below-average level, the company does not distribute dividends, and capital expenditures are low. This suggests there is a need to improve earnings performance and investment strategies to enhance long-term financial health. The company's financial performance can be better.

Profitability Ratio Summary

Profitability Score : 10.00

The company demonstrates very strong profitability, characterized by high gross profit margin, return on capital employed, return on equity, return on assets, operating margin, and net margin. This indicates effective cost management and efficient use of capital and assets, resulting in high returns for investors. This profitability shows the company is financially stable.

Efficiency Ratio Summary

Efficiency Score : 5.00

The company's efficiency ratios indicate mixed performance. While the inventory turnover ratio is good, suggesting effective inventory management, the fixed asset and capital turnover ratios are relatively weak. This indicates the company may not be generating sufficient revenue from its fixed assets and capital investments. Receivable days are also high, suggesting some inefficiencies in collecting revenue. Overall, there is room to improve the utilization of assets and working capital management.

Coverage Ratio Summary

Coverage Score : 6.80

The company's coverage ratios present a contrasting picture. While the interest coverage ratio is strong, indicating a very good ability to meet interest obligations, the equity dividend coverage ratio is poor due to the company not paying dividends. This suggests the company can comfortably manage its debt obligations but chooses not to distribute earnings to shareholders. Overall, the company's debt obligations are more than covered.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits exceptional solvency, with minimal debt relative to its equity and assets. This indicates a very strong financial structure and low risk of financial distress. This financial stability provides a solid foundation for future growth and resilience to economic downturns.

Liquidity Ratio Summary

Liquidity Score : 7.88

The company's liquidity position reflects a mix of strengths and weaknesses. While the quick ratio indicates a very good ability to meet short-term obligations with its most liquid assets, the current and cash ratios suggest an adequate but not exceptional liquidity buffer. The operating cash flow ratio is relatively low, indicating potential difficulties in covering current liabilities. This suggests the company can comfortably meet its short-term obligations but needs to improve cash flow management.