Kanoria Chemicals & Industries Ltd

Growth Ratio Summary

Growth Score : 8.80

The company's growth ratios present a mixed picture. While revenue, EPS, asset and net income growth rates are strong, the operating profit growth rate is negative, indicating potential issues with operational efficiency. These mixed signals suggest the need for a careful evaluation of the company's growth strategies and their impact on profitability.

Financial Ratio Summary

Financial Score : 3.80

The company's financial ratios indicate significant challenges. Negative adjusted and cash EPS suggest poor profitability. The book value per share is low, reflecting limited shareholder equity. The company's dividend policy is inconsistent. However, the company has maintained its capital expenditure. Addressing these issues is essential for improving the company's financial health.

Profitability Ratio Summary

Profitability Score : 3.40

The company's profitability ratios indicate poor performance. Negative gross and net profit margins, combined with negative return on equity and return on capital employed, highlight significant challenges in profitability. The return on assets indicates a moderate ability to generate profit from its assets. Addressing these issues is crucial for improving the company's financial health.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company's efficiency ratios reveal areas needing improvement. While the receivables turnover ratio is reasonable, the fixed asset and capital turnover ratios are low, suggesting inefficient asset utilization. The days sales in inventory and receivable days indicate potential issues in working capital management. Improving these ratios can enhance the company's operational performance and profitability.

Coverage Ratio Summary

Coverage Score : 2.00

The company's coverage ratios raise concerns about its ability to meet its debt obligations and dividend payments. The interest coverage ratio is poor, indicating difficulties in covering interest expenses. Similarly, the equity dividend coverage ratio is low, suggesting limited ability to cover dividend payments. Improving these ratios is crucial for maintaining financial stability.

Solvency Ratio Summary

Solvency Score : 8.40

The company's solvency ratios indicate a strong financial position. The debt and debt-to-equity ratios suggest a balanced capital structure, and the equity ratio confirms that the company relies more on equity than debt. The debt-to-asset ratio further supports the company's ability to meet its long-term obligations. However, these ratios need to be monitored over time to ensure continued financial stability.

Liquidity Ratio Summary

Liquidity Score : 6.44

The company's liquidity position reflects a mixed bag. While the current ratio suggests a comfortable buffer to meet its short-term obligations, the quick and cash ratios point towards a need for improvement in liquid asset management. The operating cash flow ratio indicates that the company might face difficulties in converting its earnings into cash. The weighted average calculation method considers the last five years, giving the most weight to the current year's data. This may not fully reflect long-term trends.