Presstonic Engineering Ltd

Growth Ratio Summary

Growth Score : 6.00

Presstonic Engineering Ltd's growth ratios present a mixed picture. While earnings per share and net income have shown strong growth, revenue and asset growth have declined. The volatile nature of these ratios indicates potential instability in the company's growth trajectory. The significant decline in revenue and asset growth raises concerns about future prospects. Maintaining the positive momentum in earnings and net income while addressing the revenue and asset growth challenges will be crucial for sustainable growth.

Financial Ratio Summary

Financial Score : 4.00

Presstonic Engineering Ltd's financial ratios indicate a mixed financial performance. Adjusted earnings per share and book value per share are low, while capital expenditures are high. The cash earnings per share ratio is better than the adjusted EPS. Despite these challenges, the high capital expenditure suggests potential investments in future growth. Improving earnings and managing capital expenditures effectively will be crucial for maximizing shareholder value. The company does not offer dividends to its share holders.

Profitability Ratio Summary

Profitability Score : 9.60

Presstonic Engineering Ltd demonstrates strong profitability, showcasing its ability to generate revenue and manage costs effectively. High gross profit margins, return on capital employed, return on equity, return on assets, operating margins, and net margins indicate efficient operations and strong financial performance. This profitability enhances the company's financial strength and provides a solid foundation for future growth. Maintaining these high levels of profitability will be crucial for maximizing shareholder value.

Efficiency Ratio Summary

Efficiency Score : 2.67

Presstonic Engineering Ltd's efficiency ratios indicate challenges in asset utilization. Low turnover ratios for fixed assets, inventory, and capital suggest inefficient asset management. The high number of days sales in inventory implies slow-moving inventory, while receivable days indicate a moderate collection period. Overall, the company needs to improve its asset turnover to enhance operational efficiency. Addressing these inefficiencies will be crucial for improving overall financial performance.

Coverage Ratio Summary

Coverage Score : 2.00

Presstonic Engineering Ltd's coverage ratios are weak, indicating potential difficulties in meeting interest obligations and providing dividend coverage. The low interest coverage ratio suggests a limited ability to cover interest expenses with earnings. The absence of equity dividend coverage further raises concerns about shareholder returns. Improving earnings and managing debt levels will be crucial for enhancing coverage ratios and ensuring financial stability.

Solvency Ratio Summary

Solvency Score : 9.00

Presstonic Engineering Ltd demonstrates strong solvency, indicating a healthy long-term financial position. The debt ratio and debt-to-equity ratio are low, suggesting a conservative approach to leveraging debt. The equity ratio, while moderate, shows a reasonable proportion of assets financed by equity. A low debt to asset ratio further reinforces the company's ability to meet its long-term obligations. This financial stability helps the company in long run.

Liquidity Ratio Summary

Liquidity Score : 3.50

The liquidity position of Presstonic Engineering Ltd is weak. While the current ratio indicates some ability to cover short-term liabilities, the quick and cash ratios suggest limited immediate liquidity. This may pose challenges in meeting unexpected obligations. The operating cash flow ratio, which indicates the ability to generate cash from operations to cover current liabilities, is also low. On a positive note, the current ratio has improved significantly in the most recent year, and this trend needs to be sustained.