Growth Ratio Summary

Growth Score : 2.80

HEG Ltd.'s growth ratios present a mixed picture. While asset growth is strong, revenue, operating profit, earnings per share (EPS), and net income growth rates are poor, reflecting significant challenges in expanding its business and profitability. The company's recent declines in revenue and earnings are concerning, indicating potential issues with market demand or operational efficiency. Although the company has managed to increase its asset base, it needs to focus on improving its top-line and bottom-line growth to ensure sustainable long-term performance.

Financial Ratio Summary

Financial Score : 5.60

HEG Ltd.'s financial ratios present a mixed performance. Book value per share is strong, indicating a solid equity base. Adjusted and cash earnings per share are average, reflecting moderate profitability. However, capital expenditures are a concern, suggesting significant investments that may be weighing on current earnings. Dividend per share is also average, providing some return to shareholders. Overall, HEG's financial metrics indicate a need to balance investments with profitability to enhance shareholder value.

Profitability Ratio Summary

Profitability Score : 9.60

HEG Ltd. exhibits strong profitability, with excellent gross profit, return on capital employed (ROCE), return on equity (ROE), operating margin, and net margin. Return on assets (ROA) is average. This indicates that the company is generating substantial profits from its operations and utilizing its capital effectively. The company's ability to convert sales into profits and generate returns for its investors is a significant strength. While ROA is moderate, the overall profitability profile suggests a financially sound operation.

Efficiency Ratio Summary

Efficiency Score : 2.33

HEG Ltd.'s efficiency ratios indicate significant challenges in utilizing its assets to generate revenue. The fixed asset and capital turnover ratios are poor, suggesting that the company is not effectively using its fixed assets and capital to generate sales. The inventory turnover ratio is also weak, implying slow-moving inventory. The days sales in inventory and receivable days are high, indicating inefficiencies in inventory and receivables management. While the receivables turnover ratio is average, improvements are needed across all efficiency metrics to enhance asset utilization and revenue generation.

Coverage Ratio Summary

Coverage Score : 9.20

HEG Ltd. demonstrates a strong ability to meet its interest and dividend obligations, reflecting a healthy financial position. The interest coverage ratio is excellent, indicating that the company can comfortably cover its interest expenses with its earnings. The equity dividend coverage ratio is good, suggesting a sufficient capacity to cover dividend payments to shareholders. These coverage ratios provide assurance to investors and creditors about the company's financial stability and ability to fulfill its obligations.

Solvency Ratio Summary

Solvency Score : 10.00

HEG Ltd. exhibits excellent solvency, characterized by a debt-free capital structure. The company's debt ratio, debt-to-equity ratio, and debt-to-asset ratio are all zero, while the equity ratio is at its maximum. This indicates that HEG relies entirely on equity to finance its assets and operations. Its financial stability and low risk of financial distress is excellent, but it also suggests that the company may not be fully leveraging debt to enhance returns or optimize its capital structure.

Liquidity Ratio Summary

Liquidity Score : 5.60

HEG Ltd.'s liquidity position reflects an average ability to meet its short-term obligations. While the current, quick, and cash ratios hover around average levels, the operating cash flow ratio indicates some strain in generating cash from operations. A mixed liquidity profile suggests that HEG can generally cover its immediate liabilities, but there's a need for vigilance in managing working capital to ensure smooth operations. The company's ability to convert assets into cash within a short period is moderate, and any disruptions in cash flow could pose challenges.