GE Power India Ltd

Growth Ratio Summary

Growth Score : 2.00

The company's growth ratios indicate significant challenges. Revenue, operating profit, EPS, asset, and net income growth rates are all negative, suggesting a contraction in the company's operations. This is a concerning trend that needs to be addressed to ensure long-term sustainability. All the growth rate are negative which is not a good sign.

Financial Ratio Summary

Financial Score : 3.20

The company's financial ratios, which include metrics such as adjusted EPS, cash EPS, book value per share, DPS, and capital expenditures, present a mixed picture. The adjusted EPS, cash EPS, book value per share, and DPS are not good, but the capital expenditures is moderate. Overall, the financial ratios suggest a need for improvement in earnings and value creation for shareholders.

Profitability Ratio Summary

Profitability Score : 3.20

The company's profitability ratios, which assess its ability to generate profits from its operations, are generally weak. Gross profit margin, ROCE, ROE, ROA, and operating margin are all negative. The net margin is high. Overall, the profitability ratios indicate significant challenges in generating profits from its operations.

Efficiency Ratio Summary

Efficiency Score : 5.33

GE Power India's efficiency ratios present a mixed picture of how well the company utilizes its assets. The inventory turnover and days sales in inventory are relatively good. However, the fixed asset turnover and receivables turnover are poor, indicating inefficiencies in managing fixed assets and collecting receivables. Overall, the company shows variable efficiency in its operations, with notable strengths in inventory management but weaknesses in fixed asset and receivables management.

Coverage Ratio Summary

Coverage Score : 5.60

The company's coverage ratios, which assess its ability to meet its interest and dividend payments, present a mixed picture. While the interest coverage ratio is adequate, the equity dividend coverage ratio is low, suggesting potential difficulties in meeting dividend obligations. The company's ability to cover its obligations is mixed, with some strengths in interest coverage but weaknesses in dividend coverage.

Solvency Ratio Summary

Solvency Score : 10.00

The company's solvency position, which assesses its ability to meet long-term obligations, is strong. The debt ratio, debt-to-equity ratio, equity ratio and debt to asset ratio all indicates a healthy balance sheet with a low risk of financial distress. This provides a solid foundation for long-term stability. The Debt Ratio and Debt to Equity Ratio are low, Equity Ratio is high which is good. This suggests that the company has been conservatively financed.

Liquidity Ratio Summary

Liquidity Score : 5.36

The company's liquidity position reflects its ability to meet short-term obligations. While the quick ratio suggests a reasonable capacity to cover immediate liabilities, the current and cash ratios indicate potential challenges in managing short-term assets effectively. The operating cash flow ratio is also low, reflecting difficulty in generating cash from operations. On a positive note, the Quick Ratio is good. These mixed signals suggest the company needs to optimize its working capital management to enhance financial flexibility.