Gulshan Polyols Ltd

Growth Ratio Summary

Growth Score : 6.00

The company shows impressive growth in revenue, operating profit, and assets, indicating strong market performance and expansion. However, a decline in earnings per share and net income growth suggests potential challenges in translating revenue into profits. Addressing these inconsistencies is crucial for sustained growth and profitability.

Financial Ratio Summary

Financial Score : 4.60

The financial ratios present a mixed outlook. While the book value per share is solid and capital expenditures are well-managed, adjusted EPS and dividend per share are low. Cash EPS also needs improvement. Addressing these areas could enhance investor confidence and overall financial health.

Profitability Ratio Summary

Profitability Score : 6.80

The company shows strong gross profit margin and return on capital employed, indicating effective cost management and efficient use of capital. However, low return on equity and net margin suggest there may be issues with overall profitability and shareholder returns. Return on assets is average. Improving these areas could enhance overall financial performance.

Efficiency Ratio Summary

Efficiency Score : 4.33

The efficiency ratios present a mixed picture. While receivables turnover is strong, indicating efficient collection of revenues, inventory turnover and capital turnover are low, suggesting inefficiencies in managing inventory and capital. Improving these areas could enhance operational effectiveness and overall financial performance.

Coverage Ratio Summary

Coverage Score : 6.80

The company demonstrates good coverage of interest expenses with its earnings, suggesting a comfortable ability to meet debt obligations. However, low equity dividend coverage indicates that the company does not have sufficient earnings to cover dividends, which might affect investor confidence.

Solvency Ratio Summary

Solvency Score : 10.00

Gulshan Polyols demonstrates strong solvency, with a solid equity base and minimal reliance on debt. This provides a stable financial structure, reducing risk and enhancing long-term sustainability. The ability to operate with low debt offers flexibility and resilience, positioning the company well for future growth and investment opportunities.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position is weak, indicating potential challenges in meeting its short-term obligations. While low liquidity can sometimes free up capital for other uses, it also increases the risk of financial distress if immediate liabilities cannot be covered. This could be a significant concern, especially in a volatile market or during unexpected downturns.