RSWM Ltd

Growth Ratio Summary

Growth Score : 6.00

The company's growth ratios are mixed. While operating profit growth and EPS growth are significantly strong, revenue and net income growth are poor. The asset growth rate is good, indicating expansion. The high volatility in growth rates suggests potential instability and the need for a more balanced approach to growth management.

Financial Ratio Summary

Financial Score : 4.60

The company's financial ratios indicate mixed performance. While capital expenditures are well-managed, adjusted EPS, cash EPS, book value per share, and dividend per share are low. This suggests challenges in generating consistent earnings and shareholder value. Improving these metrics is essential for enhancing the company's overall financial health and attracting investors.

Profitability Ratio Summary

Profitability Score : 4.40

The company's profitability ratios are varied. While return on capital employed is strong, gross profit margin, return on equity, operating margin, and net margin are poor. Return on assets is average. This indicates that while the company is efficient in using its capital, it struggles with overall profitability and margin management. Enhancing these margins is critical for sustained financial performance.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company's efficiency ratios present a mixed picture. While days sales in inventory and receivable days are well-managed, the turnover ratios for fixed assets, inventory, receivables, and capital are low. This suggests potential inefficiencies in asset utilization and working capital management. Enhancing these turnover ratios could improve overall operational efficiency and profitability.

Coverage Ratio Summary

Coverage Score : 3.20

The company's coverage ratios are marginal, with a low interest coverage ratio and a poor equity dividend coverage ratio. This suggests potential challenges in meeting interest obligations and limited ability to provide dividends to shareholders. Improving these ratios is crucial for maintaining financial stability and investor confidence. This highlights a need to strengthen earnings and manage debt effectively.

Solvency Ratio Summary

Solvency Score : 10.00

The company's solvency position is strong, characterized by a high equity ratio and low debt ratios. This suggests a conservative capital structure and a lower risk of financial distress. While a high equity ratio indicates financial stability, it may also reflect missed opportunities for leveraging debt to enhance returns. Maintaining this balance is critical for long-term financial health.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position is weak, indicating potential difficulties in meeting short-term obligations. Low current, quick, and cash ratios suggest limited liquid assets. While this could be a result of efficient cash management, it may also point to a higher risk of financial distress if immediate liabilities cannot be covered. Monitoring and improving these ratios are essential for ensuring smooth operations and financial stability.