Sahana Systems Ltd

Growth Ratio Summary

Growth Score : 8.00

The company exhibits strong growth, particularly in revenue, operating profit, EPS, and assets. However, the net income growth rate is low, indicating that while the company is expanding, net profitability has not kept pace. The company's high growth rates can attract investors and signal a promising future.

Financial Ratio Summary

Financial Score : 4.00

The company shows mixed financial performance. The cash earnings per share is moderate, but adjusted EPS, book value per share and dividend are low. However, capital expenditures are low. The company needs to enhance its earnings and shareholder value.

Profitability Ratio Summary

Profitability Score : 7.20

The company's profitability shows a mixed performance. Gross profit margin, ROCE, ROA, and operating margin are strong, indicating efficient operations and good returns on capital and assets. However, ROE and net margin are low, suggesting that equity is not being efficiently utilized to generate profits. There is a need to improve net profitability.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company exhibits mixed efficiency. The days sales in inventory and receivable days are high. However, the fixed asset turnover, inventory turnover, receivables turnover, and capital turnover are low. The company may face challenges in efficiently using its assets to generate revenue. There is a need to streamline operations and optimize asset utilization.

Coverage Ratio Summary

Coverage Score : 6.80

The company has a strong ability to cover its interest expenses, but the equity dividend coverage is low. This indicates that while the company can easily meet its debt obligations, it does not provide dividends to its equity holders. The lack of dividend payments might deter some investors seeking regular income.

Solvency Ratio Summary

Solvency Score : 10.00

The company's solvency position is strong, primarily because it has minimal debt, resulting in high equity ratios and low debt-to-asset ratios. This suggests that the company is well-protected against financial distress. This also means the company has not taken advantage of leverage to potentially amplify returns.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position is weak, which indicates challenges in meeting its short-term obligations. The implications of this situation could lead to difficulty in paying off immediate liabilities. The company needs to improve its current assets to cover its short-term liabilities. This situation might deter potential investors due to the increased risk.