Growth Ratio Summary

Growth Score : 4.00

The company demonstrates a mixed growth performance. Strong growth in operating profit and assets is tempered by declines in EPS growth and low revenue and net income growth. While investments in assets are yielding higher operating profits, the company needs to focus on translating these into revenue and net income growth to ensure sustainable expansion.

Financial Ratio Summary

Financial Score : 4.40

The financial metrics show a mixed performance. While capital expenditures is strong, the other financial metrics are weak. The company needs to focus on translating its earnings into higher book value and better shareholder returns to improve its financial standing.

Profitability Ratio Summary

Profitability Score : 4.40

SJVN Ltd's profitability ratios present a mixed picture. While Return on Capital Employed (ROCE) is strong, low gross profit margins, return on equity, return on assets, along with operating and net margins, suggest areas of concern. The company excels in generating returns from its capital employed, it struggles in converting revenue into profits and assets into profits.

Efficiency Ratio Summary

Efficiency Score : 4.67

The efficiency metrics present a mixed view of how well SJVN Ltd utilizes its assets. While Day sales in inventory and receivable days are in good state, there are other ratios, which indicates less efficient utilization of fixed assets, inventory, receivables, and capital. This suggests potential areas such as asset turnover where the company could improve to enhance operational performance.

Coverage Ratio Summary

Coverage Score : 5.60

The coverage ratios indicate SJVN Ltd's ability to meet its interest and dividend obligations. The interest coverage ratio is adequate, suggesting that the company can comfortably cover its interest expenses with its earnings.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits strong solvency, indicating a solid long-term financial stability. Primarily due to minimal debt and a high equity ratio. This financial positioning suggests that the company relies more on equity than debt, reducing its financial risk. Such a strong solvency position provides a stable base for future growth and investment.

Liquidity Ratio Summary

Liquidity Score : 2.00

The liquidity position shows challenges in meeting its short-term obligations. A low score indicates potential difficulties in covering immediate liabilities with its current assets. While this might not be critical for a utility company with predictable revenue streams, it still suggests that the company has limited flexibility in managing unforeseen expenses or investment opportunities. It reflects a need for better management of current assets and liabilities to improve short-term financial health.