Muthoot Capital Services Ltd

Growth Ratio Summary

Growth Score : 4.80

The growth ratios indicate a mixed performance. Strong growth in revenue and assets demonstrates the company's expansion potential. However, negative growth in operating profit, EPS, and net income raises concerns about profitability and earnings sustainability. The weighted average calculation highlights the importance of balancing revenue growth with profitability to ensure long-term success.

Financial Ratio Summary

Financial Score : 4.20

The financial ratios present a mixed view of the company's financial health. The lack of adjusted EPS and DPS is concerning, but the positive cash EPS and Capital Expenditures are positive indicators. The book value per share is also low. The company needs to focus on improving its earnings and shareholder value to enhance its financial position.

Profitability Ratio Summary

Profitability Score : 6.40

The profitability ratios indicate a mixed performance. Excellent gross profit and operating margins demonstrate the company's ability to generate revenue and manage expenses effectively. However, low ROE, ROA, and net margin raise concerns about overall profitability. The weighted average calculation highlights the importance of improving profitability across all metrics to enhance shareholder value.

Efficiency Ratio Summary

Efficiency Score : 4.67

Efficiency ratios paint a mixed picture, with generally low turnover ratios. However, exceptionally high scores for 'Days Sales in Inventory Ratio' and 'Receivable Days' are outliers, likely due to near-zero values in turnover ratios. This could be because of the nature of the financial services business. The weighted average calculation emphasizes the need to improve overall asset utilization and revenue generation relative to assets.

Coverage Ratio Summary

Coverage Score : 3.20

The coverage ratios suggest that the company may face challenges in meeting its debt obligations. The interest coverage ratio is low, indicating a limited ability to cover interest expenses with earnings. The absence of equity dividend coverage is a concern for shareholders. The weighted average calculation underscores the need to improve earnings and manage debt effectively.

Solvency Ratio Summary

Solvency Score : 3.80

The solvency ratios present a mixed view of the company's long-term financial stability. An acceptable Debt to Asset ratio is a positive indicator, suggesting a reasonable balance between debt and assets. However, high Debt to Equity and Debt ratios indicate significant financial leverage, posing risks if earnings decline. The company needs to manage its debt and equity structure carefully to maintain financial health.

Liquidity Ratio Summary

Liquidity Score : 2.00

The liquidity position is weak, indicating potential challenges in meeting short-term obligations. The weighted average calculation, emphasizing recent performance, highlights consistently low ratios. While a conservative approach to cash management might be a factor, it also suggests a need to improve the balance between current assets and liabilities, and this could affect its operational capabilities negatively.