S D Retail Ltd

Growth Ratio Summary

Growth Score : 10.00

The company exhibits excellent growth across all key metrics. This indicates a strong ability to expand its operations and increase its market presence. Robust revenue growth, coupled with significant increases in operating profit, earnings per share, assets, and net income, reflects effective strategies and strong execution. This sustained growth trajectory positions the company favorably for future success and increased shareholder value. However, it's important to ensure that this growth is sustainable and well-managed.

Financial Ratio Summary

Financial Score : 4.20

The company's financial ratios reveal that there is weakness with adjusted and cash earnings per share, and negative book value per share. The company's financial health needs to be improved. The lack of dividend payments also affects the financial health. However, the capital expenditure is at a good level.

Profitability Ratio Summary

Profitability Score : 9.80

The company demonstrates excellent profitability, with strong gross profit margins, returns on capital employed, equity, and assets, operating and net margins. This reflects effective cost management, efficient operations, and successful revenue generation. High profitability is a key driver of long-term value creation and shareholder returns. Maintaining these strong profitability metrics is crucial for sustained financial health and competitiveness.

Efficiency Ratio Summary

Efficiency Score : 4.33

The company's efficiency ratios present a mixed picture. While the fixed asset turnover ratio is strong, indicating effective use of fixed assets to generate revenue, other metrics are concerning. The inventory turnover ratio and capital turnover ratio are average, suggesting there's room for improvement in managing inventory and capital. Receivable turnover ratio, days sales in inventory, and receivable days are low, indicating inefficiencies in collecting receivables and managing inventory. Overall, the company needs to enhance its operational efficiency to improve its financial performance.

Coverage Ratio Summary

Coverage Score : 5.60

The company's coverage ratios reveal a mixed outlook. While the interest coverage ratio suggests an adequate ability to meet its interest obligations, the equity dividend coverage ratio is concerning due to the lack of dividend payments. The company's ability to cover dividend payments may be limited. Improving the equity dividend coverage ratio would enhance shareholder value and investor confidence.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits excellent solvency, with no debt in its capital structure. This indicates a strong financial position and minimal risk of financial distress. The equity ratio is also optimal, reflecting a healthy balance between equity and assets. This conservative capital structure provides a stable foundation for future growth and resilience to economic downturns. However, it may also indicate a missed opportunity to leverage debt for potentially higher returns.

Liquidity Ratio Summary

Liquidity Score : 7.06

The company's liquidity position reveals a mixed outlook. While the quick ratio indicates a good ability to meet short-term obligations with its most liquid assets, the current ratio is adequate. The cash ratio, however, suggests a lower proportion of cash holdings relative to current liabilities. Furthermore, the negative operating cash flow ratio is a concern, indicating potential difficulties in generating cash from its operations. This suggests that while the company has some liquid assets, managing cash flow effectively is an area that needs attention.