Sumit Woods Ltd

Growth Ratio Summary

Growth Score : 6.00

The company's growth ratios reveal a mixed performance. There has been a strong growth in revenue, operating profit, and assets, indicating successful expansion and operational improvements. On the other hand, earnings per share and net income growth rate shows a negative value. This suggests underlying issues with profitability and efficiency, which may hinder long-term sustainability.

Financial Ratio Summary

Financial Score : 4.00

The company's financial ratios present a mixed outlook. The adjusted earnings per share and cash earnings per share are low, indicating limited profitability on a per-share basis. The book value per share is also low, suggesting a modest net asset value for each share. The company does not pay dividends, but its capital expenditures are well-managed. This financial profile suggests that while the company is managing its capital expenditures effectively, profitability and shareholder value need improvement.

Profitability Ratio Summary

Profitability Score : 9.60

The company's profitability ratios highlight its strong ability to generate profits from its operations. High gross profit margins indicate efficient production and cost management. Strong returns on capital employed, equity, and assets demonstrate the effective use of resources to generate profits. Healthy operating and net margins further confirm the company's ability to convert revenue into profits. This robust profitability suggests that the company is well-positioned to sustain its financial performance and generate value for its stakeholders.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company's efficiency ratios present a mixed picture. The fixed asset turnover ratio indicates the company is highly efficient in generating revenue from its fixed assets. However, low inventory and capital turnover ratios suggest inefficiencies in managing inventory and capital. The receivable days are reasonable, but the inventory turnover is low, indicating that the company may be holding onto inventory for too long. This mixed performance suggests that while the company is effective in utilizing its fixed assets, there are opportunities to improve inventory and capital management.

Coverage Ratio Summary

Coverage Score : 4.40

The company's coverage ratios raise concerns about its ability to meet its interest and dividend obligations. The interest coverage ratio indicates a reasonable capacity to cover interest expenses with its earnings, but the equity dividend coverage ratio indicates that company is not able to cover its dividend obligation. This suggests that the company may face challenges in meeting its financial obligations in the future.

Solvency Ratio Summary

Solvency Score : 8.40

The company's solvency position suggests a well-managed capital structure. The debt and debt-to-equity ratios indicate a moderate level of debt relative to equity, while the equity ratio shows a substantial portion of assets financed by equity. The debt-to-asset ratio further confirms that the company has a good handle on its assets. This balance between debt and equity implies that the company is not overly leveraged and has a stable base of equity to support its operations, reducing the risk of financial distress.

Liquidity Ratio Summary

Liquidity Score : 5.78

The company's liquidity position shows mixed signals. While the current ratio indicates a comfortable ability to cover short-term liabilities with current assets, the quick and cash ratios suggest a lower capacity to meet immediate obligations without relying on inventory. The operating cash flow ratio is concerning, implying an inability to cover current liabilities with operating cash flow. This blend of strengths and weaknesses suggests the company might face challenges in quickly converting assets to cash, impacting its short-term financial flexibility.