Sportking India Ltd

Growth Ratio Summary

Growth Score : 10.00

The company is experiencing a period of outstanding growth. It has demonstrated an excellent ability to increase its revenues, profits, and earnings, indicating strong market demand for its products and successful business strategies. This robust growth is visible across all key financial metrics, from top-line sales to bottom-line net income. This trend is a significant strength and points towards a positive business trajectory, suggesting the company is effectively capturing market share and expanding its operations.

Financial Ratio Summary

Financial Score : 5.00

The company's financial metrics present a mixed but strategically clear picture. While shareholder returns like earnings per share are average and dividend payouts are low, this is because the company is in a heavy investment phase. The high level of capital expenditure shows a focus on reinvesting profits for long-term growth rather than providing short-term shareholder payouts. The company's ability to generate cash from its earnings is good, and its underlying asset value per share is solid, providing a stable base for this growth strategy.

Profitability Ratio Summary

Profitability Score : 10.00

The company's profitability is outstanding across the board. It is highly effective at converting revenue into profit at every stage, from gross margin down to net income. The returns it generates for its investors (Return on Equity) and on its overall capital base (Return on Capital Employed) are excellent. This superior profitability, despite its operational inefficiencies, suggests the company holds a strong competitive advantage, possibly through premium pricing, strong brand positioning, or operating in a high-margin niche within the textile industry.

Efficiency Ratio Summary

Efficiency Score : 4.33

The company's operational efficiency is an area of significant weakness. It struggles to effectively use its assets, particularly its fixed assets and inventory, to generate revenue. The data shows that products sit in inventory for a relatively long time before being sold, and the overall capital invested in the business is not generating a high level of sales. While its process for collecting payments from customers is average, the overall inefficiency in asset utilization weighs down its performance and indicates potential challenges in managing its operations at scale.

Coverage Ratio Summary

Coverage Score : 8.80

The company demonstrates a very strong capacity to meet its financial obligations, such as interest and dividend payments. Its earnings provide a substantial cushion to cover interest expenses, which is a direct benefit of its low-debt strategy. Furthermore, profits available to shareholders comfortably support the dividends being paid. This combination indicates a low-risk profile from a creditor's perspective and suggests that its dividend policy is sustainable, providing confidence to both lenders and investors.

Solvency Ratio Summary

Solvency Score : 10.00

The company's solvency position is exceptionally strong, indicating a very low level of long-term financial risk. It relies minimally on debt to finance its operations and assets. Instead, a large portion of its funding comes from equity. This conservative financial structure means the company is not burdened by heavy interest payments and has a very high capacity to withstand economic downturns. This stability is a significant advantage, providing a secure foundation for sustainable operations and future growth.

Liquidity Ratio Summary

Liquidity Score : 6.44

The company's liquidity position is mixed. On one hand, its assets are sufficient to cover short-term liabilities, which is a positive indicator of solvency. This is reflected in its strong Current and Quick ratios. On the other hand, its cash position is notably weak. The company holds very little cash relative to its short-term debts and does not generate strong cash flow from its core operations. This indicates a heavy reliance on selling inventory and collecting payments from customers to meet its immediate financial obligations, which carries a degree of risk.