Growth Ratio Summary

Growth Score : 8.00

Linde India's growth ratios present a mixed view. While the company shows strong growth in operating profit, earnings per share, assets, and net income, the negative revenue growth rate is a point of concern. This could be due to market conditions or strategic shifts, but it warrants attention to ensure sustainable growth in the long term.

Financial Ratio Summary

Financial Score : 4.00

Linde India's financial ratios indicate a mixed performance. Adjusted and cash earnings per share suggest moderate profitability. Book value per share shows some asset value, but dividend levels are average. High capital expenditures, while potentially beneficial for future growth, currently reflect a significant investment phase.

Profitability Ratio Summary

Profitability Score : 10.00

Linde India showcases excellent profitability. The gross profit margin, return on capital employed, return on equity, return on assets, operating margin, and net margin all indicate strong profitability. This reflects the company's efficient operations and ability to generate profits from its investments.

Efficiency Ratio Summary

Efficiency Score : 5.67

Linde India showcases mixed efficiency. Inventory management and sales are handled efficiently as reflected in the inventory turnover and days sales in inventory. However, fixed asset turnover is low, indicating that the company is not generating substantial revenue from its fixed assets. The receivables turnover and receivable days are average, while the capital turnover ratio is low reflecting inefficient capital utilization.

Coverage Ratio Summary

Coverage Score : 6.80

Linde India's coverage ratios present a contrasting picture. The interest coverage ratio is very high, indicating a strong ability to meet its interest obligations. However, the equity dividend coverage ratio is low, suggesting that the company's earnings available to cover equity dividends are limited.

Solvency Ratio Summary

Solvency Score : 10.00

Linde India demonstrates excellent solvency. The debt and debt-to-equity ratios being very low indicates a minimal reliance on debt financing, reducing financial risk. The high equity ratio reflects a strong equity base, providing a solid foundation for the company's operations. Similarly, the low debt to asset ratio signifies that a small portion of the company's assets are financed by debt.

Liquidity Ratio Summary

Liquidity Score : 6.96

Linde India's liquidity position reveals a mixed scenario. While the company exhibits strong quick ratios, suggesting a good ability to meet short-term obligations with its most liquid assets, the current and cash ratios indicate there is room for improvement in managing current assets and immediate cash availability. The operating cash flow ratio further highlights potential challenges in generating sufficient cash from operations to cover short-term liabilities.