Incredible Industries Ltd

Growth Ratio Summary

Growth Score : 9.20

Incredible Industries demonstrates strong growth in key areas, but asset growth is declining. High revenue and earnings growth indicate the company is expanding effectively. While the existing growth provides a positive trajectory, declining asset growth warrants attention to ensure long-term sustainability. Balancing growth with investments in assets is crucial for sustained performance.

Financial Ratio Summary

Financial Score : 3.20

Incredible Industries has a few areas that need attention within its financial metrics. The adjusted EPS and book value per share are low, and there are no dividends being paid. However, capital expenditures are moderate, which could support future growth. The existing financial position needs improvement to provide better returns for its investors.

Profitability Ratio Summary

Profitability Score : 9.80

Incredible Industries exhibits high profitability, demonstrating effective management of its resources and strong returns on investments. High margins suggest the company efficiently controls costs and generates substantial profits from its sales. While the existing profitability provides a strong foundation, focusing on sustaining these high levels is essential for long-term success. Balancing profitability with growth and operational efficiency is crucial for continued financial health.

Efficiency Ratio Summary

Efficiency Score : 9.33

Incredible Industries demonstrates strong efficiency in asset utilization, indicating effective management of its resources. High turnover ratios suggest the company is adept at generating revenue from its assets. However, the capital turnover ratio indicates there may be room to improve how effectively the company uses its capital. Maximizing asset utilization is crucial for sustaining profitability and driving long-term growth.

Coverage Ratio Summary

Coverage Score : 5.60

Incredible Industries has mixed coverage ratios. The interest coverage ratio suggests a satisfactory ability to meet its interest obligations. However, the lack of equity dividend coverage indicates that the company is not currently distributing dividends. While the existing coverage provides some financial stability, implementing a dividend strategy could make the company more attractive to investors.

Solvency Ratio Summary

Solvency Score : 10.00

Incredible Industries exhibits excellent solvency, indicating a very strong long-term financial stability. Low debt ratios and a high equity ratio suggest the company relies more on equity than debt to finance its assets. This conservative approach reduces financial risk and provides a solid foundation for future growth. The company's strong solvency position provides it with flexibility to consider strategic investments or acquisitions without undue financial strain.

Liquidity Ratio Summary

Liquidity Score : 8.36

The liquidity position of Incredible Industries is reasonably strong, indicating a good ability to meet its short-term obligations. High current and quick ratios suggest the company has sufficient liquid assets. However, the cash ratio and operating cash flow ratio indicate there may be opportunities to improve cash management. While the existing liquidity provides a buffer against short-term financial challenges, optimizing cash flow could further enhance financial flexibility.