Lambodhara Textiles Ltd

Growth Ratio Summary

Growth Score : 8.00

The company's growth trajectory shows encouraging signs. This is driven by strong improvements in operating profit, earnings per share, asset base, and net income. While revenue growth may be lagging, the overall growth trends suggest the company is effectively scaling its operations and enhancing profitability. This indicates a positive outlook for the company's future performance.

Financial Ratio Summary

Financial Score : 4.00

The company's financial metrics present a mixed picture. While capital expenditures are well-managed, adjusted earnings per share, cash earnings per share, book value per share, and dividend per share are not upto the mark. This suggests potential areas for improvement in profitability and shareholder returns. The company may need to focus on enhancing its earnings and increasing its asset value to improve its overall financial performance.

Profitability Ratio Summary

Profitability Score : 6.40

The company's profitability metrics present a mixed picture. While returns on capital employed, equity, and assets are good, gross profit margin, operating margin, and net margin are low. This indicates that the company is generating reasonable returns on its investments, but its core profitability needs improvement. The company may need to focus on reducing costs and increasing sales to enhance its profitability.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company's efficiency in utilizing its assets is mixed. While some turnover ratios are low, suggesting underutilization of assets, the days sales in inventory and receivable days are average. This indicates potential areas for improvement in managing inventory and collecting receivables to enhance overall operational efficiency. The company may not be maximizing the revenue generated from its asset base.

Coverage Ratio Summary

Coverage Score : 10.00

The company's coverage ratios are strong. This is supported by high interest coverage and equity dividend coverage. This suggests that the company can comfortably meet its interest and dividend obligations, providing financial stability and reassurance to investors. The company's ability to cover these obligations reduces its financial risk.

Solvency Ratio Summary

Solvency Score : 10.00

The company's solvency position is strong. This indicates that the company has a very stable financial structure, with a high proportion of equity and minimal debt. This allows it to withstand financial stress and provides a solid foundation for future growth. The company's reliance on equity reduces its financial risk.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position appears weak. While a lower score suggests that the company may face challenges in meeting its short-term obligations, this needs to be viewed in light of the specific working capital requirements of the textiles industry. The company may face difficulties in promptly settling its immediate liabilities, potentially impacting its operational flexibility.