Prime Securities Ltd

Growth Ratio Summary

Growth Score : 2.00

The growth ratios indicate a worrisome trend for the company. All growth metrics, including revenue, operating profit, EPS, asset, and net income growth rates, are negative. This suggests that the company is facing significant challenges in expanding its business and profitability. The company needs to figure out a way to make more profit.

Financial Ratio Summary

Financial Score : 4.00

The financial ratios present a mixed view of the company's financial performance. Capital expenditure is excellent, but adjusted EPS, cash EPS, book value per share, and dividend per share are low. While the high is a positive sign, the low EPS and book value suggest limited profitability and shareholder value. The company should focus on improving its earnings and overall financial strength. The company needs to focus on improving its financial health.

Profitability Ratio Summary

Profitability Score : 9.60

The profitability ratios indicate very strong performance. Gross profit margin, return on capital employed, return on equity, operating margin, and net margin are all very high. However, the return on assets is average. This suggests that the company is highly efficient in generating profits from its sales and operations, but its asset utilization could be improved. The company should focus on optimizing its asset management to further enhance its profitability. The company is doing a very good job at making money.

Efficiency Ratio Summary

Efficiency Score : 6.00

The company's efficiency in utilizing its assets is a mix of strengths and weaknesses. The fixed asset turnover ratio is very high, but the inventory and capital turnover ratios are low. This suggests that while the company is very efficient in generating revenue from its fixed assets, it struggles with inventory management and overall capital utilization. Receivable days are average, which is good, but indicates the company is not efficient in collecting its revenue.

Coverage Ratio Summary

Coverage Score : 6.00

The coverage ratios, which assess a company's ability to meet its interest and dividend obligations, are average. This suggests that the company has an adequate capacity to cover its debt and dividend payments. The coverage is alright and acceptable.

Solvency Ratio Summary

Solvency Score : 9.00

The solvency position of the company indicates a very minimal risk of long-term financial distress. The debt and debt to asset ratios are very low, but the equity ratio is average. This suggests that the company relies more on equity for its assets than debt. The company can comfortably meet its long-term obligations. A low debt ratio can sometimes indicate that the company is not taking advantage of leverage to enhance returns.

Liquidity Ratio Summary

Liquidity Score : 8.30

The company's liquidity position shows mixed results. While current, quick, and cash ratios suggest a strong ability to meet short-term obligations, the operating cash flow ratio raises concerns. High current and quick ratios might indicate efficient management of current assets and liabilities. However, the poor operating cash flow ratio, which is the lowest of all the liquidity ratios, indicates potential difficulties in generating cash from its core business operations. This necessitates a deeper dive into the company's cash flow management practices.