Godavari Biorefineries Ltd

Growth Ratio Summary

Growth Score : 2.80

The company's growth metrics show mixed results. While asset growth is strong, revenue, operating profit, and EPS growth are weak, indicating potential challenges in translating asset investments into profitable sales. The growth in assets is a positive sign, suggesting investment in future potential, but the lack of corresponding revenue and profit growth raises concerns about the efficiency and effectiveness of these investments.

Financial Ratio Summary

Financial Score : 4.00

The financial ratios present a mixed view. The company's adjusted EPS and dividend per share are low, reflecting potential challenges in profitability and shareholder returns. While capital expenditures are well-managed, as indicated by the score, the book value per share is also low, affecting the company's net worth. Improving cash EPS and book value per share can enhance the company's financial health and investor appeal.

Profitability Ratio Summary

Profitability Score : 4.40

The company demonstrates mixed profitability. The return on capital employed is strong, indicating efficient use of capital. However, very low gross profit and operating margins suggest challenges in controlling costs and generating profits from sales. While the return on assets is average, meaning the company is generating profits from its assets, improvements in margin and cost efficiency are needed to enhance overall profitability.

Efficiency Ratio Summary

Efficiency Score : 3.33

The company's efficiency ratios are somewhat concerning, with very low turnover rates for fixed assets, inventory, and capital. The company might not be generating sufficient revenue from its asset base. Conversely, the receivable days suggest efficient management of accounts receivable. Improving asset turnover rates could enhance overall operational efficiency and profitability.

Coverage Ratio Summary

Coverage Score : 3.20

The company's coverage ratios are weak, particularly concerning the interest coverage ratio, which suggests a limited ability to meet its interest obligations. A low equity dividend coverage ratio further indicates constraints in distributing dividends to shareholders. Strengthening these ratios is crucial for maintaining financial stability and investor confidence.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits strong solvency, characterized by a solid equity base. The debt and debt to asset ratios being low indicates that a significant portion of the company's assets are financed by equity rather than debt, providing a buffer against financial distress. This capital structure enhances the company's stability and reduces its vulnerability to economic downturns, reflecting a conservative and resilient financial strategy.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position is concerning, reflecting an inability to meet its short-term obligations with current assets. The consistently low current, quick, and cash ratios suggest potential difficulties in managing immediate liabilities. Although a low operating cash flow ratio can be a red flag, improvements in other areas could provide more operational flexibility. However, the current ratios pose a risk to the company's operational continuity if not addressed.