Shyam Century Ferrous Ltd

Growth Ratio Summary

Growth Score : 2.00

The growth ratios indicate significant challenges in expanding the business. Declining revenue, operating profit, and earnings per share growth rates raise concerns about the company's ability to sustain its operations. The negative asset growth rate suggests a contraction in the company's asset base. A strong focus on revitalizing growth initiatives is essential to secure the company's future.

Financial Ratio Summary

Financial Score : 3.60

The financial ratios present a mixed view of the company's financial performance. While capital expenditures are well-managed, low adjusted earnings per share, cash earnings per share, book value per share, and dividend per share indicate challenges in generating shareholder value. Improvement in profitability and earnings is essential to enhance these ratios. The weighted average calculation highlights the need for a more balanced approach to financial management.

Profitability Ratio Summary

Profitability Score : 2.00

The profitability ratios indicate significant challenges in generating profits. Low gross profit, return on capital employed, return on equity, return on assets, operating margin, and net margin suggest inefficiencies in cost management and revenue generation. A strong focus on improving profitability is essential to ensure the company's long-term sustainability.

Efficiency Ratio Summary

Efficiency Score : 4.67

The efficiency ratios present a mixed view of the company's operational effectiveness. While the days sales in inventory and receivable days are well-managed, low fixed asset and capital turnover ratios indicate potential inefficiencies in asset utilization. Improvement in these areas could enhance overall efficiency and profitability. The weighted average calculation highlights the need for a more balanced approach to resource management.

Coverage Ratio Summary

Coverage Score : 2.00

The coverage ratios suggest potential difficulties in meeting financial obligations. Low interest and equity dividend coverage ratios indicate a limited ability to cover interest expenses and dividend payments. Strengthening the company's earnings and cash flow is essential to improve these ratios and ensure financial stability. The weighted average calculation underscores the need for enhanced financial resilience.

Solvency Ratio Summary

Solvency Score : 8.00

The solvency position indicates a very conservative approach to debt. Low debt and debt-to-equity ratios suggest minimal reliance on external borrowing. While this reduces financial risk, it may also limit the company's ability to leverage opportunities for growth. The weighted average calculation reflects a stable but potentially underutilized capital structure.

Liquidity Ratio Summary

Liquidity Score : 2.00

The liquidity position reflects challenges in meeting short-term obligations. Low current, quick, and cash ratios suggest difficulty in converting assets into cash quickly. The operating cash flow ratio indicates potential issues in generating cash from operations. While the company's past liquidity was strong, it has diminished significantly in recent years. Improvement in managing current assets and liabilities is essential to enhance financial flexibility.