Growth Ratio Summary

Growth Score : 4.00

The company's growth ratios indicate mixed performance. Strong operating profit and asset growth are offset by declines in earnings per share and low revenue and net income growth. Operating profit growth is a positive sign, suggesting improved operational efficiency or increased sales. However, negative EPS growth is concerning, as it impacts shareholder value. The weighted average calculation highlights the need for sustained growth across multiple metrics to ensure a consistent and positive outlook.

Financial Ratio Summary

Financial Score : 3.60

The financial ratios indicate mixed performance. While capital expenditures is strong, the adjusted and cash earnings per share, book value per share, and dividend per share are low. The strong capital expenditures suggests the company is investing in its future. The low adjusted and cash earnings per share, book value, and dividend per share need improvement. The weighted average calculation emphasizes the need for recent improvements to positively impact the company's assessment.

Profitability Ratio Summary

Profitability Score : 4.00

The company's profitability ratios reveal mixed performance. Strong return on capital employed (ROCE) is offset by low gross profit, return on equity (ROE), return on assets (ROA), operating margin, and net margin. The high ROCE suggests efficient use of capital, while the other low ratios indicate underlying issues with profitability. The weighted average calculation emphasizes recent data, highlighting the need for improvements across multiple profitability metrics to ensure a consistent and positive outlook.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company's efficiency ratios present a mixed view. While the days sales in inventory and receivable days are strong, indicating rapid turnover, the fixed asset, inventory, receivables, and capital turnover ratios are low. This suggests potential inefficiencies in asset utilization. Rapid turnover in inventory and receivables signifies efficient working capital management. The weighted average calculation emphasizes the most recent data, indicating that recent improvements in efficiency are positively impacting the company's overall assessment.

Coverage Ratio Summary

Coverage Score : 6.80

The coverage ratios present a mixed picture. The interest coverage ratio is strong, indicating the company can comfortably meet its interest obligations. However, the zero equity dividend coverage ratio suggests that the company is not providing dividend coverage. While a strong interest coverage ratio is a positive sign of financial health, the lack of equity dividend coverage may disappoint investors seeking returns through dividends.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits strong solvency, indicating a robust ability to meet its long-term obligations. The equity ratio indicates a strong reliance on equity financing, enhancing financial stability. This financial structure can provide a buffer against financial distress and support long-term growth. However, it may also reflect a missed opportunity to leverage debt for potentially higher returns. The company's reliance on equity may limit its ability to pursue growth opportunities that require significant capital investments.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position appears weak, suggesting potential difficulties in meeting its short-term obligations. The company may face challenges in managing its working capital effectively. On a positive note, the IT sector may not require high liquidity if it operates on a low-asset model. A lower liquidity score may reflect efficient cash management, but it also indicates vulnerability to unforeseen expenses or economic downturns. The weighted average calculation emphasizes recent performance, so sustained low ratios will continue to negatively impact the score.