Paramatrix Technologies Ltd

Growth Ratio Summary

Growth Score : 6.80

The company shows strong growth in revenue, assets, and net income, reflecting expansion and market penetration. However, the negative operating profit and EPS growth indicate underlying challenges in maintaining profitability as it grows. While the company is expanding, it needs to ensure that its growth translates into improved profitability to ensure sustainable long-term success.

Financial Ratio Summary

Financial Score : 6.20

The company shows a mixed financial performance. While it excels in dividend payout and manages capital expenditures effectively, its earnings per share and book value per share are low. This suggests potential challenges in earnings quality and asset valuation. Improving profitability and asset management could enhance these financial metrics and boost investor confidence.

Profitability Ratio Summary

Profitability Score : 10.00

The company demonstrates excellent profitability across all key metrics, including gross profit margin, ROCE, ROE, ROA, operating margin, and net margin. This reflects efficient operations and effective cost management. The company is highly efficient in generating profit from its capital, equity, and assets. This strong profitability enhances the company's financial health and supports future growth.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company's efficiency metrics present a mixed picture. While it excels in managing inventory and receivables, as indicated by high scores for Days Sales in Inventory and Receivable Days, it struggles with asset turnover. This suggests that while the company effectively manages its working capital, it is not efficiently utilizing its assets to generate revenue. There are some assets which are not used well by the company.

Coverage Ratio Summary

Coverage Score : 6.80

The company demonstrates excellent ability to cover its interest expenses, but its equity dividend coverage is weak. This suggests that while the company can easily handle its debt obligations, it may struggle to provide adequate dividend returns to its shareholders. Balancing these two aspects is important for maintaining financial stability and investor satisfaction.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits strong solvency, demonstrating a stable financial structure. Low debt ratios and a high equity ratio suggest that the company is primarily financed by equity rather than debt. This reduces financial risk and provides a solid foundation for future growth. The company maintains a healthy balance sheet, reflecting its ability to meet long-term obligations.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position is weak, indicating potential difficulties in meeting its short-term obligations. The current, quick, and cash ratios are all consistently low, reflecting an inability to convert assets into cash quickly. While this might be common in some IT service models, it raises concerns about the company's immediate financial flexibility and its capacity to handle unforeseen financial challenges.