Sheetal Universal Ltd

Growth Ratio Summary

Growth Score : 10.00

The company demonstrates excellent growth across all key metrics. The high revenue growth rate, operating profit growth rate, earnings per share growth, asset growth rate, and net income growth rate indicate strong expansion and improved profitability. This suggests the company is effectively capturing market opportunities and enhancing shareholder value. The consistent growth across various dimensions reflects a well-managed and strategically driven organization. Such robust growth positions the company favorably for future success and market leadership.

Financial Ratio Summary

Financial Score : 2.80

The company's financial ratios reveal significant challenges in generating consistent earnings and shareholder value. The low adjusted earnings per share, cash earnings per share, book value per share, and dividend per share suggest underlying issues in profitability and earnings quality. Additionally, the high capital expenditures indicate substantial investments, but their effectiveness in generating returns is not yet evident. The company needs to focus on improving earnings, managing capital investments, and enhancing shareholder returns to strengthen its financial position.

Profitability Ratio Summary

Profitability Score : 10.00

The company exhibits excellent profitability across all key metrics. The high gross profit margin, return on capital employed, return on equity, return on assets, operating margin, and net margin indicate strong operational efficiency and effective cost management. This suggests the company is generating substantial profits from its core activities and utilizing its resources efficiently. The consistent profitability across various dimensions reflects a well-managed and strategically driven organization, positioning the company favorably for future financial success.

Efficiency Ratio Summary

Efficiency Score : 7.33

The company's efficiency in asset utilization is mixed. The fixed asset and inventory turnover ratios are strong, indicating efficient use of fixed assets and inventory management. The receivables turnover ratio is good. However, the high number of receivable days and capital turnover ratio suggest potential issues in collecting payments and overall capital management. While the company is effective in some areas, there are opportunities to improve efficiency in managing receivables and capital investments.

Coverage Ratio Summary

Coverage Score : 6.80

The company's coverage ratios present a mixed outlook. While the interest coverage ratio indicates a strong ability to meet its interest obligations, the lack of equity dividend coverage is a concern. Although the company can comfortably pay its interest expenses, it does not distribute dividends to its equity shareholders. The company should consider balancing debt obligations with shareholder returns to maintain investor confidence and attract long-term investments.

Solvency Ratio Summary

Solvency Score : 10.00

The company's solvency position is excellent, with all metrics indicating very strong financial stability. The low debt ratio and debt-to-equity ratio, combined with a high equity ratio, suggest the company relies more on equity than debt to finance its assets. This indicates a conservative approach to financial leverage, reducing the risk of financial distress. The low debt-to-asset ratio further confirms the company's financial strength, indicating a sustainable capital structure. This strong solvency position provides a solid foundation for future growth and stability.

Liquidity Ratio Summary

Liquidity Score : 6.22

The company's liquidity position reveals a mixed performance. While the quick ratio indicates a strong ability to meet short-term obligations with its most liquid assets, the current ratio is good. However, the very low cash ratio suggests a reliance on less liquid current assets. The negative operating cash flow ratio is a concern, indicating the company is not generating enough cash from its operations to cover its immediate liabilities. This mixed picture suggests that while the company has some liquid assets, its overall liquidity management needs improvement to ensure financial stability.