Growth Ratio Summary

Growth Score : 6.00

The growth ratios present a mixed picture. The company shows strong revenue and operating profit growth, suggesting effective strategies in expanding its market presence and improving operational performance. The negative EPS growth and net income growth is a significant cause for concern, indicating potential issues with profitability or earnings management. Addressing these concerns will be crucial for sustaining long-term growth.

Financial Ratio Summary

Financial Score : 4.00

The financial ratios present a mixed outlook. While the cash earnings per share show some positive signs, the adjusted earnings per share, book value per share, and dividend per share are low. The company showcases positive financial decision with capital expenditures. Improving these metrics will be crucial for attracting investors and ensuring financial stability.

Profitability Ratio Summary

Profitability Score : 6.60

The profitability ratios show a mixed performance. The company exhibits strong gross profit margin, ROCE, and operating margin, indicating effective cost management and operational efficiency. However, negative ROE and net margin are a cause for concern. Addressing these issues is essential for ensuring sustained profitability and shareholder value.

Efficiency Ratio Summary

Efficiency Score : 5.00

The efficiency ratios present a mixed picture for Harrisons Malayalam Ltd. While the company excels in managing its inventory and receivable days, its turnover ratios for fixed assets, inventory, and receivables are low, suggesting inefficient asset utilization. Improving asset turnover could significantly enhance the company's operational performance.

Coverage Ratio Summary

Coverage Score : 4.40

The coverage ratios suggest a moderate ability to meet interest obligations but a lack of dividend coverage. While the interest coverage ratio is adequate, the absence of equity dividend coverage raises concerns about shareholder returns. Improving dividend coverage would enhance investor confidence and attractiveness.

Solvency Ratio Summary

Solvency Score : 10.00

The company shows strong solvency, indicating a solid financial structure with a high degree of equity financing and a low reliance on debt. This provides financial stability and flexibility. Retaining this balance is vital for sustained growth and weathering economic downturns. While a debt-free status offers advantages, strategically using debt could potentially boost returns, provided it's managed carefully.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position appears strained, with all metrics reflecting minimal ability to meet short-term obligations. This suggests a heavy reliance on operational cash flows and external financing. While such a strategy might support growth initiatives, it also elevates the risk of financial distress if revenues decline or unforeseen expenses arise. The company needs to improve its current assets to cover its current liabilities.