Shah Alloys Ltd

Growth Ratio Summary

Growth Score : 6.00

The company exhibits mixed growth. While the company has experienced significant growth in earnings per share and net income, it has struggled with revenue and asset growth. The positive trends in earnings and net income may indicate improving profitability and efficiency, while challenges in revenue and asset growth suggest potential difficulties in expanding its market presence and operational scale. The company needs to address these imbalances to achieve sustainable growth.

Financial Ratio Summary

Financial Score : 3.60

The company exhibits mixed financial signals. While the capital expenditures are at an optimal level, reflecting strategic investments, its adjusted earnings per share, cash earnings per share, and book value per share are very low. The dividend per share is also very low, reflecting its inability to consistently generate profits for its shareholders. The company needs to address these imbalances to achieve sustainable financial health.

Profitability Ratio Summary

Profitability Score : 2.00

The company's profitability is weak across various metrics. The gross profit margin, return on capital employed, return on equity, return on assets, operating margin, and net margin are all very low, indicating that the company is struggling to generate profits from its operations. This suggests inefficiencies, high costs, or competitive pressures. The company needs to address these issues to improve its financial performance.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company shows mixed efficiency, with strengths in managing inventory and receivable days, but weaknesses in asset turnover. While the company effectively manages its inventory and receivables, its ability to generate revenue from its fixed assets and overall capital is very low. These mixed signals suggest the company could improve its asset utilization to enhance overall operational efficiency. The company needs to improve its ratios.

Coverage Ratio Summary

Coverage Score : 2.00

The company's coverage ratios are weak, indicating potential difficulties in meeting its financial obligations. The interest coverage ratio is low, suggesting that the company may struggle to cover its interest expenses. The equity dividend coverage ratio is also very low, reflecting an inability to provide adequate dividend coverage. The company needs to improve its financial performance to enhance its ability to meet its financial obligations.

Solvency Ratio Summary

Solvency Score : 10.00

The company's solvency position is strong, primarily because the company's equity significantly funds its assets. The debt and debt to asset ratios are also at optimal levels, which suggests a conservative approach to borrowing. This indicates a lower risk of financial distress. This provides a stable financial foundation for future growth and stability.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position is weak, indicating potential difficulties in meeting its short-term obligations. Low current, quick, and cash ratios suggest that the company may struggle to convert its assets into cash quickly. While a low operating cash flow ratio points toward operational inefficiencies, it's essential to consider industry-specific factors that may affect these ratios. This situation could pose risks to the company's financial stability if not addressed promptly.