Macpower CNC Machines Ltd

Growth Ratio Summary

Growth Score : 2.00

The company's growth metrics show significant challenges in expanding revenue, operating profit, and earnings per share. Declines in asset and net income growth rates raise concerns about the company's ability to sustain growth in the long term. The company needs to address the factors contributing to the negative growth trends to revitalize its performance. On a positive side, the company has the potential to grow in the future.

Financial Ratio Summary

Financial Score : 3.60

The financial metrics present a mixed picture, with adjusted earnings per share, cash earnings per share, book value per share, and dividend per share showing some concerns. The company's capital expenditures are managed well, indicating a balanced approach to investments. The company should focus on improving its other financial metrics for better financial health. On a positive side, the company's capital expenditure is managed well.

Profitability Ratio Summary

Profitability Score : 9.80

The company demonstrates strong profitability, with high returns on capital employed, equity, and assets, along with good profit margins. This indicates effective management and efficient operations, leading to increased profitability. The company's focus on profitability is a key strength and contributes to its overall financial health. The company should focus on maintaining its profitability.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company's efficiency in utilizing its assets shows mixed results, with some turnover ratios indicating strong performance and others indicating areas for improvement. The company collects payments quickly, but the other ratios are not good. Efficient operations are essential for maximizing profitability and maintaining a competitive edge in the General Industrials sector. The company's operational performance will be much better if the company focuses on the other ratios.

Coverage Ratio Summary

Coverage Score : 5.20

The company demonstrates an ability to meet its dividend obligations, but struggles with interest coverage. While the company is able to provide dividends to its equity holders, it is also important for the company to focus on interest obligations, but the company has no debt so there is no interest to be paid. Balancing dividend payouts with the need for reinvestment in the business is important for long-term sustainability. The company's coverage ratio is moderate, reflecting its current financial capacity.

Solvency Ratio Summary

Solvency Score : 9.00

The company exhibits excellent solvency, reflecting a strong ability to meet its long-term obligations. The debt and debt-to-asset ratios are low, and the equity ratio is high, indicating financial stability and a low risk of financial distress. The company's reliance on equity over debt provides a stable financial structure. A potential area of concern could be ensuring that the financial structure remains robust, as indicated by the equity ratio, to mitigate any future risks.

Liquidity Ratio Summary

Liquidity Score : 2.40

The liquidity position reveals challenges in meeting short-term obligations, with the weighted average suggesting difficulties in converting assets into cash swiftly. While current ratios and operating cash flow ratios offer some support, the overall picture indicates potential financial strain. A conservative approach to managing current assets and liabilities may be necessary to improve the company's short-term financial health. On the positive side, the company's current ratio is gradually improving, which indicate the company has a good management, however, the company needs to increase its liquid assets.