Ramdevbaba Solvent Ltd

Growth Ratio Summary

Growth Score : 8.00

The company exhibits robust growth in revenue, operating profit, assets, and net income, signifying strong expansion and market performance. However, the decline in earnings per share (EPS) growth indicates potential challenges in translating revenue growth into shareholder value. Despite this, the company's overall growth trajectory remains positive. The company needs to take care of their EPS.

Financial Ratio Summary

Financial Score : 4.00

The company's financial ratios reflect a mixed performance. While capital expenditures are well-managed, low adjusted EPS, cash EPS, and book value per share raise concerns about profitability and shareholder value. The company needs to focus on increasing their EPS and book value per share. However, their capital expenditure is well managed.

Profitability Ratio Summary

Profitability Score : 9.80

The company exhibits strong profitability, with high gross profit margin, ROCE, ROE, ROA, operating margin, and net margin. This indicates the company's ability to generate profits from its sales and assets. The company is highly profitable. However, company needs to maintain their margins.

Efficiency Ratio Summary

Efficiency Score : 7.67

The company demonstrates mixed efficiency. High inventory and receivables turnover ratios suggest effective management of working capital. However, the fixed asset and capital turnover ratios indicate underutilization of assets. This mixed performance suggests that the company excels in certain operational aspects but needs to improve asset utilization to enhance overall efficiency. The company needs to take care about their assets and capital.

Coverage Ratio Summary

Coverage Score : 5.60

The company's coverage ratios present a mixed outlook. While the interest coverage ratio suggests an adequate ability to meet interest expenses, the lack of equity dividend coverage raises concerns about returning value to shareholders. The company should focus on increasing their equity dividend coverage. However, they are good enough to pay their interest.

Solvency Ratio Summary

Solvency Score : 8.40

The company's solvency ratios reflect a balanced financial structure. The debt and equity ratios suggest a mix of debt and equity financing, indicating reliance on borrowed funds. The debt-to-asset ratio indicates a reasonable proportion of assets financed by debt. This mix provides financial stability and flexibility. However, company needs to keep their debt in check.

Liquidity Ratio Summary

Liquidity Score : 3.18

The company's liquidity position shows both strengths and weaknesses. While the current and quick ratios suggest an ability to meet short-term obligations, the minimal cash ratio and operating cash flow ratio indicate a reliance on current assets for liquidity. This may pose challenges in times of financial stress. However, the current ratio is good enough to meet its current liabilities. The weighted average calculation provides a balanced view of the company's recent liquidity performance.