Growth Ratio Summary

Growth Score : 10.00

Sonam Ltd. demonstrates strong growth across all key indicators. High revenue growth suggests increasing sales and market share. Excellent operating profit growth indicates improving operational efficiency. Outstanding EPS growth reflects enhanced profitability for shareholders. Solid asset growth signals sustainable expansion. Remarkable net income growth confirms increasing overall profitability. These consistent growth trends position the company favorably for future success.

Financial Ratio Summary

Financial Score : 4.00

Sonam Ltd's financial metrics present a mixed view. While zero capital expenditure allow greater financial flexibility, low adjusted and cash earnings per share, and book value per share, raise concerns about profitability and asset value. The absence of dividends may also deter income-focused investors. Improving earnings and asset management could enhance overall financial performance.

Profitability Ratio Summary

Profitability Score : 10.00

Sonam Ltd. exhibits strong profitability across all key metrics. High gross profit margin suggests efficient production and pricing strategies. Excellent ROCE indicates effective capital utilization. Good ROE reflects strong returns to shareholders. Outstanding ROA signifies efficient asset management. Remarkable operating margin demonstrates operational efficiency. Solid net margin confirms overall profitability. These consistent profitability trends position the company favorably for future success.

Efficiency Ratio Summary

Efficiency Score : 4.67

Sonam Ltd. exhibits mixed efficiency. Its strong receivables turnover suggests effective credit management and quick conversion of receivables into cash. However, low fixed asset and capital turnover ratios indicate underutilization of assets. High days sales in inventory further suggest challenges in inventory management, offset somewhat by reasonable receivable days. Improving asset utilization could enhance overall efficiency.

Coverage Ratio Summary

Coverage Score : 5.60

Sonam Ltd. has an adequate capacity to cover its interest expenses, but its lack of equity dividend coverage raises concerns. While interest coverage is a good, the absence of dividend coverage indicates that the company is not returning profits to shareholders. Improving dividend coverage could enhance investor confidence and overall financial health.

Solvency Ratio Summary

Solvency Score : 10.00

Sonam Ltd demonstrates strong financial stability. The company has low levels of debt compared to its equity and assets which shows great financial health. This indicates a conservative capital structure and reduces the risk of financial distress. The company's high equity ratio further supports its solvency. This strong position provides a solid base for future growth and resilience to economic downturns and confirms that the company is in a great position.

Liquidity Ratio Summary

Liquidity Score : 3.18

The company's liquidity position needs attention. While the current and quick ratios suggest some ability to meet short-term obligations, they are not exceptionally strong. The very low cash ratio indicates a reliance on other current assets to cover immediate liabilities. A low operating cash flow ratio is also a concern, as it means the company isn't generating enough cash from its operations. This could pose risks if short-term obligations need to be met quickly, but the recent stability suggests that the company is able to manage its current liabilities.