Indian Card Clothing Company Ltd

Growth Ratio Summary

Growth Score : 4.80

The growth ratios present a mixed picture of Indian Card Clothing Company Ltd.'s performance. While the company has experienced substantial growth in earnings per share (EPS) and asset growth, revenue growth rate, operating profit growth rate, and net income growth rate are negative. The company needs to address the factors contributing to the decline in revenue and net income to achieve sustainable growth.

Financial Ratio Summary

Financial Score : 6.00

The financial ratios provide insights into Indian Card Clothing Company Ltd.'s earnings and value. The adjusted earnings per share (EPS) and book value per share are relatively low, suggesting moderate profitability and asset value on a per-share basis. Cash earnings per share and dividend per share are average. The company's capital expenditures are well-managed. Overall, the company demonstrates a balanced financial performance although there is room to grow.

Profitability Ratio Summary

Profitability Score : 6.80

The profitability ratios present a mixed view of Indian Card Clothing Company Ltd.'s performance. The company has excellent returns on capital employed, equity, and net margin, indicating efficient use of capital and equity. However, the gross profit margin, return on assets, and operating margin are low, suggesting challenges in cost management and operational efficiency. The company needs to address these issues to improve overall profitability.

Efficiency Ratio Summary

Efficiency Score : 3.67

The efficiency ratios indicate areas where Indian Card Clothing Company Ltd. could improve its asset utilization. The fixed asset and capital turnover ratios are low, suggesting that the company is not generating sufficient revenue from its fixed assets and capital investments. Inventory turnover and receivable turnover are average. The company needs to focus on improving asset turnover to enhance overall efficiency and profitability.

Coverage Ratio Summary

Coverage Score : 6.80

The coverage ratios present a mixed view of Indian Card Clothing Company Ltd.'s ability to meet its financial obligations. The interest coverage ratio is very high, suggesting that the company has a strong capacity to cover its interest expenses. However, the equity dividend coverage ratio is low, indicating a limited ability to cover dividend payments with available equity. The company needs to balance its debt and dividend obligations to ensure financial stability.

Solvency Ratio Summary

Solvency Score : 10.00

The solvency ratios suggest that Indian Card Clothing Company Ltd. has a strong financial structure with low debt levels. The company's debt ratio, debt-to-equity ratio, and debt-to-asset ratio are low, indicating minimal reliance on debt financing. The high equity ratio further reinforces the company's financial stability. This conservative financial approach reduces financial risk and provides a solid foundation for future growth although the company may be missing out on opportunities that could be funded through debt.

Liquidity Ratio Summary

Liquidity Score : 8.40

The company's liquidity position is generally strong, indicating a robust ability to meet its short-term obligations. High current, quick, and cash ratios are positive signs, reflecting ample liquid assets. However, the operating cash flow ratio is a concern, suggesting difficulties in generating cash from its core operations. While the company appears well-equipped to handle immediate liabilities, it must address the gap in operating cash flow to maintain long-term financial health.