Swiggy Ltd

Growth Ratio Summary

Growth Score : 8.00

Swiggy demonstrates strong growth, with excellent revenue, asset, and net income growth rates. This indicates robust expansion and increasing market presence. However, the earnings per share (EPS) growth is poor, suggesting that profitability has not kept pace with revenue growth. While the company exhibits significant growth potential, addressing the EPS issue is crucial for ensuring sustainable and balanced financial performance. Focusing on improving profitability alongside revenue growth is essential for the company's long-term success.

Financial Ratio Summary

Financial Score : 4.40

Swiggy's financial ratios present a mixed financial picture. While the book value per share and capital expenditures are positive, the adjusted earnings per share (EPS) and cash earnings per share (Cash EPS) are negative, indicating profitability challenges. The dividend per share (DPS) is zero, reflecting a lack of dividend payouts. Addressing the negative EPS and improving overall earning efficiency are crucial for enhancing financial performance. Improving earning efficiency is the key to improving things.

Profitability Ratio Summary

Profitability Score : 2.00

Swiggy's profitability ratios indicate significant challenges in generating profits. The gross profit margin, return on capital employed (ROCE), return on equity (ROE), return on assets (ROA), operating margin, and net margin are all poor, reflecting consistent losses across various profitability metrics. Addressing these profitability issues is crucial for ensuring long-term financial sustainability and attracting investors.

Efficiency Ratio Summary

Efficiency Score : 7.00

Swiggy demonstrates good efficiency in managing its operations. The inventory turnover ratio and days sales in inventory ratio indicate efficient inventory management, ensuring products are sold quickly. The receivables turnover ratio also highlights effective management of accounts receivable. However, the fixed asset turnover ratio and capital turnover ratio are relatively low, suggesting less efficient utilization of fixed assets and capital. Overall, while Swiggy excels in inventory and receivables management, improving the utilization of fixed assets and capital could enhance overall operational efficiency.

Coverage Ratio Summary

Coverage Score : 2.00

Swiggy's coverage ratios raise significant concerns about its ability to meet its interest and dividend obligations. The interest coverage ratio is poor, indicating that the company is struggling to cover its interest expenses with its earnings. Similarly, the equity dividend coverage ratio is also poor, reflecting an inability to cover dividend payments. Addressing these coverage issues is crucial for ensuring financial stability and maintaining investor confidence. The company needs to generate more earnings to cover its obligations.

Solvency Ratio Summary

Solvency Score : 6.40

Swiggy's solvency ratios present a mixed outlook on its long-term financial stability. The debt ratio and debt-to-asset ratio indicate a high level of debt relative to its assets, raising concerns about its ability to meet long-term obligations. However, the negative debt-to-equity ratio and equity ratio suggest a complex capital structure, potentially influenced by accumulated losses. While the company faces solvency challenges, addressing its debt levels and improving equity could enhance its long-term financial health.

Liquidity Ratio Summary

Liquidity Score : 7.48

Swiggy exhibits good liquidity, indicating a strong ability to meet its short-term obligations. The current and quick ratios are above industry benchmarks, suggesting efficient management of current assets and liabilities. A healthy cash ratio further supports this, reflecting a robust cash position. However, the operating cash flow ratio is poor, indicating operational inefficiencies in generating cash. While the company's liquidity position is generally favorable, improvements in operating cash flow are needed to enhance overall financial health.