SPL Industries Ltd

Growth Ratio Summary

Growth Score : 2.00

The company's growth ratios are poor, indicating challenges in expanding its operations. Revenue, operating profit, EPS, asset, and net income growth rates are all low, which suggests that the company may be facing difficulties in increasing its sales, profitability, and asset base. This could be due to intense competition, changing consumer preferences, or economic downturns. While the company's solvency position is strong, its ability to generate growth is a concern.

Financial Ratio Summary

Financial Score : 3.60

The financial ratios present a mixed picture. While capital expenditures are well-managed, adjusted earnings per share, cash earnings per share, book value per share, and dividend per share are low. This indicates that the company may not be generating sufficient profits for its shareholders, and its book value may not be accurately reflecting its true worth. Although capital expenditures are controlled, the company needs to improve its earnings and book value to enhance shareholder value.

Profitability Ratio Summary

Profitability Score : 2.00

The company's profitability ratios are poor, indicating challenges in generating profits. Gross profit, return on capital, return on equity, return on assets, operating, and net margins are all low, which suggests that the company may be facing difficulties in controlling its costs, managing its assets, or generating sales. This could be due to intense competition, changing consumer preferences, or economic downturns. While the company's solvency position is strong, its ability to generate profits is a concern.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company's efficiency ratios present a mixed picture. While days sales in inventory and receivable days are well-managed, indicating efficient working capital management, fixed asset, inventory, receivables, and capital turnover ratios are low. This suggests that the company may not be efficiently utilizing its assets to generate revenue. Although working capital is managed effectively, there is room to improve asset utilization.

Coverage Ratio Summary

Coverage Score : 2.00

The coverage ratios are poor, indicating a limited ability to cover interest and dividend payments. Both the interest coverage ratio and the equity dividend coverage ratio are low, which suggests that the company may have difficulty in meeting its financial obligations. This could be due to low profitability, high debt levels, or inconsistent dividend policies. While the company's solvency position is strong, its ability to cover its financial obligations is a concern.

Solvency Ratio Summary

Solvency Score : 8.00

The company's solvency position is strong, indicating a solid ability to meet its long-term obligations. While the debt ratio, debt-to-equity ratio, and debt-to-asset ratios suggest a conservative approach to leverage, the equity ratio is low. This might limit the company's financial flexibility and potential for growth. Nonetheless, SPL Industries appears well-positioned to manage its debts.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position is weak, indicating a struggle to meet its short-term obligations. The current, quick, and cash ratios are all low, which suggests that the company may have difficulty in paying its immediate liabilities. This could be due to several factors, such as slow-moving inventory, delayed collection of receivables, or high levels of short-term debt. While the operating cash flow ratio is also low, indicating insufficient cash generation from operations to cover current liabilities.