Growth Ratio Summary

Growth Score : 2.80

Mazda Ltd's growth ratios reveal significant challenges in revenue, profit, and earnings growth. Declining revenue and operating profit growth rates raise concerns about market competitiveness and operational efficiency. While asset growth is positive, the negative trends in key performance indicators require immediate attention. The company needs to reassess its growth strategies to identify and address the underlying issues. While asset growth provides a foundation for future expansion, reversing the negative trends will be crucial for long-term success. The company's growth trajectory needs to be revitalized.

Financial Ratio Summary

Financial Score : 6.00

Mazda Ltd's financial ratios reflect a mixed performance. While the adjusted and cash earnings per share are at average, the book value per share also at average, indicating moderate financial health. The dividend per share is also at average. However, capital expenditures are relatively high. Balancing investments in CapEx with maintaining healthy earnings is crucial for sustaining long-term financial stability. The company's financial ratios show a need for strategic financial management.

Profitability Ratio Summary

Profitability Score : 10.00

Mazda Ltd demonstrates excellent profitability ratios, indicating efficient cost management and pricing strategies. The company's strong gross profit margin reflects effective cost control in production. The high return on capital employed (ROCE), return on equity (ROE), and return on assets (ROA) indicate efficient utilization of capital and assets. The robust operating and net margins further highlight the company's profitability. Maintaining these profitability levels will be crucial for sustaining long-term financial success. The company's profitability ratios provide a solid foundation for future growth and shareholder value.

Efficiency Ratio Summary

Efficiency Score : 3.33

Mazda Ltd's efficiency ratios suggest notable areas for improvement in how effectively the company utilizes its assets. The turnover ratios, including fixed assets and capital, are low, indicating underutilization of assets. The days sales in inventory and receivable days are relatively high, suggesting inefficiencies in inventory management and collections. Addressing these inefficiencies could improve operational performance and profitability. While there are areas needing attention, the company's inventory turnover is still at average. Optimizing asset utilization will be crucial for enhancing overall efficiency.

Coverage Ratio Summary

Coverage Score : 10.00

Mazda Ltd demonstrates excellent coverage ratios, indicating a strong ability to meet its interest and dividend obligations. The robust interest coverage ratio reflects a comfortable margin for servicing its debt. The high equity dividend coverage ratio indicates a solid capacity to sustain dividend payments. These coverage ratios provide financial stability and reassurance to investors. The company's strong coverage ratios enhance its financial credibility and investor confidence.

Solvency Ratio Summary

Solvency Score : 10.00

Mazda Ltd exhibits excellent solvency, indicating a very low level of debt relative to its assets and equity. This financial structure provides a stable foundation, minimizing financial risk and enhancing long-term sustainability. The company's reliance on equity financing reduces its exposure to interest rate fluctuations and debt repayment pressures. While minimal debt offers financial security, it may also limit the company's ability to leverage opportunities for growth through strategic borrowing. The company's strong solvency position enables it to pursue long-term investments and weather economic downturns effectively.

Liquidity Ratio Summary

Liquidity Score : 8.36

Mazda Ltd exhibits strong liquidity, indicating a robust capacity to meet its short-term financial obligations. The company maintains healthy levels of current and quick assets relative to its liabilities. However, the cash and operating cash flow ratios, while adequate, suggest there is room for improvement in managing current assets and liabilities. While the current and quick ratios provide a buffer against unexpected cash outflows, the lower cash ratio indicates a reliance on other current assets. Monitoring and optimizing these components will be beneficial for maintaining financial flexibility and efficiency.