Growth Ratio Summary

Growth Score : 3.20

Safari Industries demonstrates mixed growth performance. While it has shown good growth in earnings per share and assets, its revenue and net income growth rates are low, indicating potential limitations in market expansion and profitability. Continued focus on leveraging asset and earnings growth is essential for balanced development. The operating profit growth rate has fluctuated significantly, indicating inconsistency in operational performance.

Financial Ratio Summary

Financial Score : 2.80

The financial metrics for Safari Industries present a mixed picture. While the book value per share is reasonably good and capital expenditures are well-managed, the adjusted earnings per share is low, and cash earnings per share is also below average. The dividend per share is moderate, indicating some return to shareholders. Overall, there is room for improvement in enhancing earnings and returns.

Profitability Ratio Summary

Profitability Score : 2.83

Safari Industries presents mixed profitability metrics. While return on capital employed and return on assets are strong, indicating good utilization of capital and assets, gross profit margin, return on equity, operating margin, and net margin are low. This discrepancy suggests inefficiencies in cost management and revenue generation. Enhancing profit margins is vital for improving overall profitability.

Efficiency Ratio Summary

Efficiency Score : 1.67

Safari Industries' efficiency ratios are generally weak. The turnover ratios for fixed assets, inventory, and capital are minimal, indicating underutilization of assets and poor sales generation relative to investments. However, the days sales in inventory and receivable days are high, which could mean the company has effective credit and inventory management. Improving asset utilization is vital for boosting overall efficiency.

Coverage Ratio Summary

Coverage Score : 4.60

Safari Industries demonstrates adequate coverage ratios. The interest coverage ratio is strong, indicating the company's ability to comfortably meet its interest obligations. However, the equity dividend coverage ratio is quite low, which could be because company does not have equity dividend. Overall, the company shows reasonable financial stability in meeting its debt commitments.

Solvency Ratio Summary

Solvency Score : 5.00

Safari Industries exhibits excellent solvency. The company operates with no debt, leading to a high equity ratio and zero debt-to-equity and debt-to-asset ratios. This strong financial positioning provides a stable base for future growth and protects against financial distress. The absence of debt, however, could also mean missed opportunities to leverage financial resources for expansion.

Liquidity Ratio Summary

Liquidity Score : 2.00

The liquidity position of Safari Industries is concerning. The current, quick, and cash ratios are all at minimal levels, indicating a struggle to meet short-term obligations with liquid assets. This might affect the company's ability to handle unforeseen expenses or invest in immediate opportunities. While the company has managed to stay afloat, improving liquidity is important for stability and growth.