Rites Ltd

Growth Ratio Summary

Growth Score : 2.80

Rites Ltd's growth ratios indicate a concerning trend with declines in revenue, operating profit, and EPS growth. While asset growth shows some positive movement, it is not sufficient to offset the negative trends in key performance indicators. The company needs to address these issues to ensure sustainable growth. The weighted average calculation highlights the challenges in maintaining consistent and positive growth across various metrics.

Financial Ratio Summary

Financial Score : 5.20

Rites Ltd's financial ratios present a varied picture. The company shows a high dividend per share and no capital expenditure, which is positive for investors seeking returns. However, the adjusted EPS, cash EPS, and book value per share are low, indicating potential areas of concern regarding earnings and asset value. The weighted average calculation emphasizes the importance of focusing on improving earnings and book value to enhance overall financial health.

Profitability Ratio Summary

Profitability Score : 7.20

Rites Ltd demonstrates strong profitability, characterized by high gross profit margin, ROCE, ROA, and operating margin. However, the return on equity and net margin are low. The company's ability to generate profits from its capital employed and assets is a significant strength. The weighted average calculation underscores the company's consistent profitability while highlighting areas for improvement in ROE and net margin.

Efficiency Ratio Summary

Efficiency Score : 4.67

The efficiency ratios of Rites Ltd present a mixed picture. While the company demonstrates good performance in managing its inventory and receivables, its fixed asset and capital turnover ratios are low. This suggests that the company is not generating substantial revenue from its fixed assets and overall capital, which could indicate underutilization or inefficiency. The weighted average calculation emphasizes the need for improvements in fixed asset and capital management to boost overall efficiency.

Coverage Ratio Summary

Coverage Score : 6.80

Rites Ltd demonstrates a strong capacity to cover its interest expenses, but its equity dividend coverage is low. The high-interest coverage ratio provides financial flexibility and security. However, the limited equity dividend coverage may concern investors seeking dividend income. The weighted average calculation underscores the company's consistent ability to meet its interest obligations while highlighting the need to improve dividend coverage.

Solvency Ratio Summary

Solvency Score : 10.00

Rites Ltd exhibits strong solvency, characterized by minimal debt and a high proportion of equity. The company's financial structure is conservative, reducing its financial risk and providing stability. While a debt-free status offers security, it may also limit the potential for leveraging debt to enhance returns. The weighted average calculation confirms the company's consistent adherence to a low-debt, high-equity financial strategy.

Liquidity Ratio Summary

Liquidity Score : 2.00

The liquidity position of Rites Ltd is weak. The ratios indicate that the company may face challenges in meeting its short-term obligations with its current assets. The company's current, quick, and cash ratios are notably low. This suggests a need to improve the management of working capital to ensure smoother operations and financial flexibility. The weighted average calculation method highlights the consistent deficiency in these metrics over the past few years.