Prozone Realty Ltd

Growth Ratio Summary

Growth Score : 2.00

The company's growth ratios indicate significant challenges. Negative revenue, operating profit, EPS, asset, and net income growth rates suggest a period of contraction and financial difficulty. These negative trends raise concerns about the company's future prospects and sustainability. Addressing these growth-related issues is critical for long-term success.

Financial Ratio Summary

Financial Score : 4.00

The company's financial ratios present a mixed outlook. While capital expenditures is a positive sign, low adjusted EPS, cash EPS, and book value per share raise concerns about profitability and shareholder value. The company's decision not to distribute dividends further impacts shareholder returns. Improving earnings and enhancing shareholder value are essential for long-term financial health.

Profitability Ratio Summary

Profitability Score : 8.90

The company demonstrates strong profitability, supported by healthy gross profit and operating margins. The company's ability to generate profit from its operations is a positive indicator of financial health. However, a low return on assets suggests that the company is not efficiently utilizing its assets to generate profits. Enhancing asset utilization could further improve profitability.

Efficiency Ratio Summary

Efficiency Score : 4.00

The company's efficiency ratios present a mixed picture. Receivable days are managed well, indicating efficient collection of revenues. However, low turnover ratios for fixed assets, inventory, and capital, coupled with a high days sales in inventory ratio, suggest inefficiencies in asset utilization and inventory management. Addressing these inefficiencies can improve overall operational performance.

Coverage Ratio Summary

Coverage Score : 2.00

The company's coverage ratios are weak, indicating potential difficulties in meeting its debt obligations. The low interest coverage ratio suggests that the company's operating profit is barely sufficient to cover its interest expenses. This raises concerns about the company's ability to service its debt. Improving profitability and managing debt levels are crucial for better coverage ratios.

Solvency Ratio Summary

Solvency Score : 8.50

The company demonstrates robust solvency, indicating a strong financial position. The debt and debt-to-asset ratios suggest that the company has been managing its debt effectively. A balanced approach to debt and equity ensures long-term financial health. This provides a stable foundation for future growth and investment.

Liquidity Ratio Summary

Liquidity Score : 2.40

The company's liquidity position appears weak, indicating potential challenges in meeting its short-term obligations. While the operating cash flow ratio shows some ability to generate cash from operations, the low current, quick, and cash ratios suggest limited liquid assets to cover immediate liabilities. This could pose risks in managing day-to-day expenses and unexpected financial needs. A higher liquidity position would offer more financial flexibility.