Kohinoor Foods Ltd

Growth Ratio Summary

Growth Score : 1.80

The company's growth ratios present a mixed outlook. While revenue growth is positive, other growth metrics such as operating profit, EPS, asset, and net income growth are poor. This indicates that while the company is increasing its sales, it is struggling to translate that into improved profitability and asset efficiency. The negative trends in profitability and EPS growth are particularly concerning and need to be addressed to ensure sustainable growth.

Financial Ratio Summary

Financial Score : 1.80

The company's financial ratios indicate several areas of concern. Adjusted EPS and book value per share are low, suggesting poor financial performance and limited shareholder value. While capital expenditures indicate some investment in the business, cash EPS is weak. The lack of dividend payments further impacts investor returns. These financial metrics highlight the need for strategic improvements to enhance the company's financial health.

Profitability Ratio Summary

Profitability Score : 2.83

The company's profitability ratios present a mixed performance. While ROCE and operating margin are reasonably strong, gross profit margin, ROE, ROA, and net margin are low, indicating underlying issues with cost management and operational efficiency. The company needs to focus on improving its profitability metrics to ensure sustainable financial health and enhance investor returns.

Efficiency Ratio Summary

Efficiency Score : 2.33

The company's efficiency ratios present a mixed picture. While days sales in inventory and receivable days are well-managed, the turnover ratios are low, indicating inefficient asset utilization. Specifically, fixed asset, inventory, and receivables turnover are poor, suggesting that assets are not being used effectively to generate revenue. This could be due to obsolete inventory, slow-paying customers, or underutilized fixed assets. The company needs to improve its asset management practices to enhance overall efficiency.

Coverage Ratio Summary

Coverage Score : 3.40

The company's coverage ratios present a mixed outlook. While the interest coverage ratio is very strong, the equity dividend coverage ratio is poor. This suggests that the company is capable of meeting its interest obligations but does not provide equity dividend coverage. This might impact its ability to attract and retain investors who prioritize dividend income.

Solvency Ratio Summary

Solvency Score : 5.00

The company's solvency is strong, with high scores across all metrics. This indicates a solid long-term financial stability and low risk of bankruptcy. A high equity ratio suggests that the company relies more on equity than debt, providing a buffer against financial distress. However, it is important to consider the context of the company's industry and overall financial strategy when evaluating its solvency.

Liquidity Ratio Summary

Liquidity Score : 1.00

The company's liquidity position is concerning, with all liquidity ratios indicating poor performance. This suggests a significant risk in meeting short-term obligations. Low current, quick, and cash ratios reflect an inability to cover current liabilities with current assets. The weighted average calculation emphasizes recent performance, highlighting the persistent nature of these liquidity issues. The company needs to improve its working capital management to enhance its ability to meet immediate financial demands.