Growth Ratio Summary

Growth Score : 5.20

The company's growth ratios present a mixed outlook. While revenue and operating profit growth rates are strong, earnings per share and asset growth rates pose challenges. Strong revenue and operating profit growth suggest the company is expanding its market presence and improving its operational performance. However, the decline in EPS and assets requires attention to ensure sustainable long-term growth.

Financial Ratio Summary

Financial Score : 3.80

The company's financial ratios present a mixed performance. While cash earnings per share are strong, adjusted earnings per share, book value per share, dividend per share, and capital expenditures require attention. High cash earnings per share indicate the company's ability to generate cash from its operations. However, the challenges in adjusted EPS, book value, DPS, and CapEx need to be addressed to enhance overall financial health.

Profitability Ratio Summary

Profitability Score : 4.80

The company's profitability ratios present a mixed performance. While return on equity and operating margin are strong, gross profit margin, return on capital employed, return on assets, and net margin require attention. The strong ROE and operating margin suggest effective use of equity and operational efficiency. However, challenges in gross profit, ROCE, ROA, and net margin need to be addressed for sustainable profitability.

Efficiency Ratio Summary

Efficiency Score : 6.33

The company's efficiency ratios present a mixed picture. While days sales in inventory and receivable days are managed effectively, the fixed asset and capital turnover ratios indicate potential underutilization of assets. The inventory and receivables turnover ratios suggest efficient working capital management. Effective management of inventory and receivables is crucial for maintaining profitability in the textile industry, where demand can fluctuate and competition is intense.

Coverage Ratio Summary

Coverage Score : 2.00

The company's coverage ratios reveal potential challenges in meeting its financial obligations. Low interest coverage ratio indicates that the company may face difficulties in paying its interest expenses. Similarly, a low equity dividend coverage ratio suggests limited capacity to cover dividend payments. These coverage challenges could raise concerns among investors and lenders about the company's financial stability.

Solvency Ratio Summary

Solvency Score : 9.00

The company's solvency position demonstrates strengths in managing debt. The debt ratio is relatively low. Similarly, the debt-to-equity ratio indicates a manageable level of debt compared to equity. A moderate equity ratio suggests a balanced capital structure. The debt-to-asset ratio further supports a conservative approach to leverage. This financial strategy could provide stability and potential for sustained growth in the long term.

Liquidity Ratio Summary

Liquidity Score : 2.68

The company's liquidity position reveals certain challenges. While a higher current ratio in some years suggests an ability to cover short-term liabilities with current assets, recent declines raise concerns. Similarly, the quick ratio, which excludes inventory, reflects a limited immediate capacity to meet obligations. Low cash and operating cash flow ratios further emphasize potential difficulties in generating cash from operations. The textiles industry often faces working capital challenges due to fluctuating demand and inventory management issues.