Talbros Automotive Components Ltd

Growth Ratio Summary

Growth Score : 6.00

The company demonstrates strong growth in operating profit, EPS, and assets. This growth is driven by efficient operations and strategic investments. However, the lack of growth in revenue and net income raises concerns about the sustainability of this expansion. The company should focus on translating its operational efficiencies into revenue and net income growth.

Financial Ratio Summary

Financial Score : 4.20

The company's financial ratios present a mixed view. The company's cash earnings per share and book value per share are positive, while adjusted EPS and dividend per share are areas of concern. The company's capital expenditures are well-managed. Balancing these factors is crucial for sustainable financial performance.

Profitability Ratio Summary

Profitability Score : 4.80

The company's profitability ratios show a mixed performance. The ROCE and ROA are good, reflecting efficient use of capital and assets. However, low gross profit, operating, and net margins raise concerns about overall earnings quality. The company needs to focus on improving its margins to enhance profitability.

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, the turnover ratios for fixed assets, inventory, receivables, and capital are low. The management of sales in inventory and receivable days is good, the company needs to improve the process of turnover ratios.

Coverage Ratio Summary

Coverage Score : 6.80

The company's coverage ratios indicate a strong ability to meet its interest obligations but a weakness in covering equity dividends. The high interest coverage ratio provides financial flexibility, while the lack of equity dividend coverage may affect investor confidence. The company needs to balance its debt management with shareholder returns.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits a strong solvency position. The company has been able to maintain very low debt levels, and have been able to have more equity. This indicates a conservative financial approach and reduces vulnerability to economic downturns. This financial stability provides a solid foundation for future growth.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position appears weak. A major concern is the company's ability to meet its short-term obligations. On a positive note, the company's industry might have specific working capital dynamics that affect these ratios. The company should focus on optimizing working capital management to enhance financial flexibility and efficiency.