IZMO Ltd

Growth Ratio Summary

Growth Score : 6.00

The company demonstrates solid growth in key areas. Earnings per share, operating profit, and asset growth rates are strong, indicating the company is expanding its profitability and asset base. However, the negligible revenue and net income growth may indicate that these increases are not being driven by sales. The IT sector is characterized by rapid changes, and sustained growth is critical for maintaining competitiveness.

Financial Ratio Summary

Financial Score : 4.00

The company's financial ratios present a mixed assessment. While capital expenditures are efficiently managed, other metrics like adjusted EPS, cash EPS, book value per share, and dividend per share are not performing as well. The IT sector is characterized by rapid changes, and the company's ability to adapt will significantly impact its future.

Profitability Ratio Summary

Profitability Score : 4.60

The company presents a mixed profitability profile. While the return on assets and return on capital employed are positive, the gross profit, operating, and net margins are low. This indicates that while the company is making some profit on its assets and capital, it struggles with basic profitability. The IT sector is highly competitive, and profitability is key for sustaining growth and innovation.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company's efficiency ratios present a mixed picture. While days sales in inventory and receivable days suggest efficient management of these aspects, the low fixed asset and capital turnover ratios indicate potential underutilization of assets. This could mean that the company is not generating sufficient revenue from its investments in fixed assets and capital. The IT sector is characterized by rapid technological changes, making it crucial to optimize asset utilization.

Coverage Ratio Summary

Coverage Score : 6.80

The company's coverage ratios demonstrate a strong ability to meet its financial obligations. The interest coverage ratio is robust, indicating that the company can comfortably cover its interest expenses. However, the equity dividend coverage ratio is low, reflecting the absence of dividend payouts. The IT sector often prioritizes reinvesting earnings for growth and innovation.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits a strong solvency position. This suggests a low risk of financial distress and a solid foundation for long-term stability. The high equity ratio indicates that the company relies more on equity than debt to finance its assets, providing a buffer against financial risks. It's important to note that the IT sector often values innovation and technological advancement, and a strong solvency position enables the company to invest in these areas.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position appears weak. A lower liquidity score suggests potential difficulties in meeting short-term obligations. This might restrict the company's operational flexibility and ability to invest in growth opportunities. The weighted average calculation method highlights that recent performance significantly influences this assessment. The company may face challenges in managing its current assets and liabilities effectively.