Inventure Growth & Securities Ltd

Growth Ratio Summary

Growth Score : 6.80

The company exhibits mixed growth trends. Strong revenue and asset growth suggest expansion and market traction, but declines in operating profit and EPS growth raise concerns about profitability and earnings sustainability. Addressing the factors impacting operating profit and EPS is crucial for maintaining long-term growth momentum. The company should focus on increasing its profitability.

Financial Ratio Summary

Financial Score : 2.80

The financial ratios reveal areas of concern. Low adjusted EPS, cash EPS, and book value per share suggest challenges in generating earnings and building equity value. High capital expenditures might be straining current earnings. Addressing these financial metrics is important for improving overall financial performance and investor confidence. Company need to focus on improving overall financial performance and investor confidence.

Profitability Ratio Summary

Profitability Score : 9.40

The company shows strong profitability, with high gross profit margin, ROCE, ROE, operating margin, and net margin. These ratios indicate the company is efficiently converting revenue into profit and generating good returns on its capital and assets. This strong profitability supports the company's financial stability and growth potential. Company can improve return on assets.

Efficiency Ratio Summary

Efficiency Score : 5.67

Efficiency ratios present a mixed picture. While fixed asset and receivables turnover are relatively strong, indicating effective use of fixed assets and credit management, inventory turnover is low, and the capital turnover ratio is notably poor. This suggests inefficiencies in inventory management and overall capital utilization. Improving these areas could enhance the company's operational performance and profitability. The company need to focus on improving overall capital utilization.

Coverage Ratio Summary

Coverage Score : 6.80

The coverage ratios present a mixed outlook. A strong interest coverage ratio indicates the company can comfortably meet its interest obligations. However, the lack of equity dividend coverage suggests the company is not providing dividends to equity shareholders, which could affect investor sentiment. Balancing interest coverage with shareholder returns is important for overall financial health. Company need to focus on providing dividents to the share holders.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits strong solvency, indicating a solid long-term financial structure. Low debt ratios and a high equity ratio demonstrate a conservative approach to leverage and a strong reliance on equity financing. This provides a stable base for future growth and reduces the risk of financial distress. It also indicates the company has sufficient assets to cover its debt obligations.

Liquidity Ratio Summary

Liquidity Score : 8.40

The company's liquidity position is generally strong, indicating a high ability to meet its short-term obligations. High current, quick, and cash ratios suggest ample liquid assets. However, a negative operating cash flow ratio indicates potential issues with generating cash from core business activities, which could strain liquidity in the long run. Maintaining high liquidity is vital for non-bank financial institutions to ensure smooth operations and manage unexpected financial needs.