Prudential Sugar Corporation Ltd

Growth Ratio Summary

Growth Score : 2.00

The growth ratios reveal significant challenges for the company. Negative revenue growth indicates declining sales, which could stem from weakening demand. Declining earnings per share and net income growth further underscore these issues. Overall, the company needs to address the underlying factors causing these declines to ensure future growth and sustainability.

Financial Ratio Summary

Financial Score : 4.00

The financial ratios offer a mixed view of the company's earnings and value. The adjusted and cash earnings per share indicates there is a concern is profitability. The book value per share means the company's net asset value is also a concern. Overall, the company needs to focus on improving its earnings and asset value to enhance shareholder wealth and attract investors.

Profitability Ratio Summary

Profitability Score : 8.60

The profitability ratios shows a mixed performance. The gross profit margin is at an average level, which means there is a room to improve. The return on capital employed and return on equity are good, indicating efficient use of capital and equity. But the return on assets is a concern. Overall, the company exhibits strong profitability in terms of capital and equity, but there is a need to improve asset utilization and gross profit margin to achieve more balanced and sustainable results.

Efficiency Ratio Summary

Efficiency Score : 6.67

The efficiency ratios presents a mixed evaluation of how well the company uses its assets and manages its operations. The fixed asset turnover ratio shows the company is efficient in generating sales from its fixed assets. However, the inventory turnover ratio is very poor, which indicates significant issues in inventory management. Overall, there is a mixed performance in the company's ability to efficiently manage its assets and working capital.

Coverage Ratio Summary

Coverage Score : 5.60

The coverage ratios provide insights into the company's ability to meet its interest and dividend obligations. The interest coverage ratio means the company can comfortably cover its interest expenses. However, the equity dividend coverage ratio is poor, indicating the company doesn't have the ability to pay out dividends.. Overall, the company's coverage ratios highlight the need to improve dividend coverage to enhance shareholder returns.

Solvency Ratio Summary

Solvency Score : 9.00

The solvency ratios paints a mixed picture of the company's long-term financial stability. The debt ratio and debt-to-equity ratio is at a good level, indicating a conservative approach to borrowing and a solid equity base. However, the equity ratio is at an average level. Overall, the company's solvency suggests a need for more balanced capital structure to support sustainable growth.

Liquidity Ratio Summary

Liquidity Score : 6.72

The company's liquidity position shows mixed results. The current and quick ratios indicate a very strong ability to meet short-term obligations with current assets. However, the poor cash and operating cash flow ratios are a concern, suggesting potential difficulties in using cash to pay off its current liabilities. While the company appears liquid based on standard measures, it needs to improve its cash management to ensure smoother operations. A higher cash ratio would provide a greater buffer against unexpected expenses or downturns, contributing to a more stable financial position.