Growth Ratio Summary

Growth Score : 6.00

Shoppers Stop Ltd demonstrates strong growth in revenue and operating profit, reflecting successful business strategies and market positioning. However, the negative earnings per share (EPS) growth and net income growth, suggest underlying challenges in profitability. The high asset growth rate indicates significant investments in the company's asset base. These growth metrics, calculated using a weighted average, provide insights into the company's expansion and financial performance. The company needs to maintain its financial performance and expansion.

Financial Ratio Summary

Financial Score : 2.40

The financial ratios for Shoppers Stop Ltd indicate a mixed financial performance. While the cash earnings per share show some positive earnings, the low adjusted earnings per share, book value per share, dividend per share, and high capital expenditures suggest potential challenges in profitability and shareholder returns. The weighted average calculation, which emphasizes recent performance, underscores the need for improved financial management. The company needs to improve its financial management.

Profitability Ratio Summary

Profitability Score : 10.00

The profitability ratios for Shoppers Stop Ltd indicate strong financial performance. High gross profit margin, return on capital employed (ROCE), return on equity (ROE), return on assets (ROA), operating margin, and net margin suggest efficient operations and effective management. These ratios, calculated using a weighted average, emphasize the company's ability to generate profits and returns. The company has effective management and it generates profits.

Efficiency Ratio Summary

Efficiency Score : 4.67

The efficiency ratios for Shoppers Stop Ltd indicate mixed performance in utilizing its assets. While the receivables turnover and receivable days are managed efficiently, suggesting effective credit and collection policies, the low fixed asset turnover, inventory turnover, and capital turnover ratios point to potential inefficiencies in asset utilization. The weighted average calculation gives more importance to the recent performance. The company needs to improve its efficiency of its assets.

Coverage Ratio Summary

Coverage Score : 3.20

The coverage ratios for Shoppers Stop Ltd indicate potential challenges in meeting its interest obligations and providing dividend coverage. The interest coverage ratio suggests limited ability to cover interest expenses, while the equity dividend coverage ratio is very low. These ratios, calculated using a weighted average, emphasize the company's recent financial performance. It has limited ability to cover its interest expenses. It needs to improve its coverage ratio.

Solvency Ratio Summary

Solvency Score : 3.20

The solvency ratios for Shoppers Stop Ltd present a mixed view of its long-term financial stability. The very high debt ratio and debt-to-equity ratio, coupled with a low equity ratio, indicate significant reliance on debt financing, which poses a risk if the company faces financial distress. However, the debt-to-asset ratio is at an optimum position which is good. These ratios, calculated using a weighted average, emphasize the company's recent capital structure decisions. The good thing is that company can take debt but it should also require to decrease its liabilities.

Liquidity Ratio Summary

Liquidity Score : 3.58

The company's liquidity position suggests it may face challenges in meeting its short-term obligations. While the current and quick ratios indicate some ability to cover current liabilities, the low cash ratio and operating cash flow ratio point to potential difficulties in generating sufficient cash from operations. The application of the weighted average calculation, emphasizing recent performance, highlights the need for improved short-term financial management. On the positive side, the current ratio is above 1 which means that the company has more assets than liabilities.