SMS Lifesciences India Ltd

Growth Ratio Summary

Growth Score : 10.00

The growth ratios display a strong upward trend, showing SMS Lifesciences is significantly expanding. High growth in revenue, operating profit, EPS, assets, and net income indicates robust business performance. This growth reflects effective strategies and market positioning. The company is experiencing substantial expansion across various financial metrics. The weighted average calculation underscores the consistent and strong growth trajectory.

Financial Ratio Summary

Financial Score : 3.80

The financial ratios is mixed, showing inconsistent performance across key metrics. While the book value per share is average, adjusted EPS, cash EPS, and dividend per share are relatively low. Capital expenditures are a concern, suggesting potential underinvestment. These factors collectively impact the company's overall financial health and long-term sustainability. It might face challenges in securing funding for future projects. The weighted average calculation highlights the mixed performance across these financial metrics.

Profitability Ratio Summary

Profitability Score : 9.80

The profitability ratios demonstrate a strong ability to generate profits. High gross profit margin, ROCE, ROE, ROA, operating margin, and net margin indicate efficient operations and effective management. This profitability reflects the company's ability to control costs and maximize revenue. This ensures long-term sustainability and shareholder value. The weighted average calculation highlights the consistent strength in profitability metrics.

Efficiency Ratio Summary

Efficiency Score : 3.33

The efficiency ratios indicate mixed performance in asset utilization. While the receivables turnover is average, the fixed asset and capital turnover ratios suggest underutilization of assets. High days sales in inventory and receivable days indicate potential inefficiencies in inventory and credit management. These factors may impact the company's ability to generate revenue from its asset base. It also means money is tight because sales are taking more time. The weighted average calculation highlights the recent challenges in optimizing asset utilization.

Coverage Ratio Summary

Coverage Score : 8.80

The coverage ratios is strong, indicating a good ability to meet its interest and dividend obligations. The interest coverage ratio suggests the company can comfortably pay its interest expenses from its earnings. High dividend coverage indicates a high capacity to cover dividend payments. This showcases financial stability and security for investors. The weighted average calculation highlights the consistent strength in meeting coverage obligations.

Solvency Ratio Summary

Solvency Score : 10.00

The solvency ratios reflect a strong position, indicating a healthy balance between debt and equity. The low debt ratio and debt-to-equity ratio suggest that the company relies more on equity than debt to finance its assets. The high equity ratio further confirms the financial stability and lower risk of financial distress. The improving debt to asset ratio demonstrates controlled use of debt. This indicates long-term financial stability and resilience. The weighted average calculation underscores the continued strength in solvency management.

Liquidity Ratio Summary

Liquidity Score : 3.08

The liquidity position reflects challenges in meeting short-term obligations. The current and cash ratios indicate limited ability to cover immediate liabilities with current assets and cash. The quick ratio offers a slightly better, but still weak, view when excluding inventory. The operating cash flow ratio, while slightly better, could be improved to enhance the company's short-term financial health. These ratios collectively suggest potential difficulties in managing working capital effectively. The weighted average calculation places emphasis on recent performance, highlighting the need for improvement in liquidity management.