Growth Ratio Summary

Growth Score : 2.00

The company has experienced significant declines in revenue, operating profit, EPS, assets, and net income. This contraction may deter investors. However, these challenges may present an opportunity for strategic restructuring and innovation. If the company can address the underlying issues, there is potential for a turnaround and future growth.

Financial Ratio Summary

Financial Score : 4.00

The financial metrics present a mixed picture. The company's ability to generate cash earnings is a positive sign. The low book value per share and lack of dividends may deter some investors. However, the company's strategic capital expenditures show forward looking approach. The company's overall financial health requires improvement in earnings and shareholder returns.

Profitability Ratio Summary

Profitability Score : 6.10

Mangalam Alloys Ltd exhibits mixed profitability. Strong gross and operating margins indicate effective cost management and operational efficiency. The company's underlying profitability is robust, reflecting sound operational strategies. However, negative returns on equity and assets suggest challenges in translating profits into shareholder value. Improved management of assets and equity could enhance overall profitability.

Efficiency Ratio Summary

Efficiency Score : 4.67

Mangalam Alloys Ltd demonstrates strong efficiency, particularly in inventory and receivables management. The company excels in converting inventory and receivables into sales, indicating effective working capital management. The company's asset utilization contributes positively to its overall financial health. However, the turnover of fixed assets and capital is low, which suggests there is room to improve how effectively these assets are being used to generate revenue.

Coverage Ratio Summary

Coverage Score : 2.00

The coverage ratios suggest challenges in meeting its interest and dividend obligations. This situation may increase its financial risk and limit its financial flexibility. The company may need to improve its earnings or reduce its debt. The inability to cover these obligations could affect the company's credit rating and investor confidence.

Solvency Ratio Summary

Solvency Score : 8.00

The solvency of Mangalam Alloys Ltd is strong. The company's approach to managing debt is conservative, and the equity portion is substantial. This indicates a well-balanced capital structure with low financial risk. The financial stability evident in the solvency ratios may also enhance investor confidence. However, the decision to take on more debt to fuel growth may be beneficial.

Liquidity Ratio Summary

Liquidity Score : 2.40

The liquidity position raises concerns due to its inability to efficiently cover its short-term obligations. While a slightly positive operating cash flow provides some relief, the overall liquidity score indicates potential difficulties in managing immediate liabilities. A low liquidity score may deter investors seeking stable, short-term financial health. However, this could be a strategic decision if the company is prioritizing long-term investments over immediate cash reserves.