Orient Paper & Industries Ltd

Growth Ratio Summary

Growth Score : 2.00

The growth ratios are generally poor. It indicates that the company is not growing its revenue, operating profit, earnings per share, assets, or net income. This suggests a lack of expansion and potential stagnation in the market. The company has to focus on improving its growth.

Financial Ratio Summary

Financial Score : 3.60

The financial ratios present a mixed view. While capital expenditures are well-managed, the low adjusted earnings per share, cash earnings per share, book value per share, and dividend per share suggest the company is not effectively generating financial returns for its shareholders. This indicates potential inefficiencies in operations. The company has to focus on improving its financial returns.

Profitability Ratio Summary

Profitability Score : 2.00

The profitability ratios are very low, indicating that the company is not generating sufficient profits from its sales, assets, and equity. This suggests operational inefficiencies and pricing issues. The company has to improve its profitability.

Efficiency Ratio Summary

Efficiency Score : 4.67

The efficiency ratios present a mixed picture. While days sales in inventory and receivable days are well-managed, the low turnover ratios for fixed assets, inventory, and capital suggest the company is not effectively utilizing its assets to generate sales. This indicates potential inefficiencies in operations and asset management. The company has to focus on these factors.

Coverage Ratio Summary

Coverage Score : 2.00

The coverage ratios are very low, indicating that the company may struggle to meet its interest and dividend obligations. This could raise concerns about the company's financial stability. The company has to improve its coverage ratio.

Solvency Ratio Summary

Solvency Score : 8.00

The solvency position is strong, reflecting a low level of debt relative to equity and assets. This indicates that the company has a solid financial structure and is less reliant on debt financing. However, the low equity ratio suggests there is room to strengthen the equity base to further enhance financial stability. So the company has to focus on equity also.

Liquidity Ratio Summary

Liquidity Score : 2.00

The liquidity position of the company is weak, as indicated by the low scores across all liquidity metrics. This suggests the company may struggle to meet its short-term obligations. While this might be a concern, it is important to analyze the reasons behind these low ratios within the context of the company's operational strategies. The company should try to improve its liquidity position.