Growth Ratio Summary

Growth Score : 3.20

The growth ratios indicate a concerning trend. While the operating profit growth rate is high, other growth metrics such as revenue growth, EPS growth, asset growth, and net income growth are poor. This suggests that the company's profitability improvements are not translating into sustainable growth across key performance indicators. The company needs to address the underlying issues hindering revenue and asset growth to ensure long-term sustainability.

Financial Ratio Summary

Financial Score : 4.00

The financial ratios indicate challenges in key per-share metrics. Adjusted EPS and book value per share are low, while cash EPS is slightly better but still below average. Dividend per share is non-existent, but capital expenditures are well-managed. This suggests the company struggles with core earnings and shareholder value but is efficient in managing capital spending. Improving these ratios is crucial for enhancing investor confidence and long-term financial health.

Profitability Ratio Summary

Profitability Score : 3.60

The profitability ratios present significant challenges. Gross profit margin, return on capital employed, return on assets, operating margin, and net margin are poor, indicating fundamental issues with profitability. However, a high return on equity is misleading due to negative equity. The company needs to address these issues to improve overall financial performance and sustainability.

Efficiency Ratio Summary

Efficiency Score : 4.67

The efficiency ratios present a mixed picture. While the inventory turnover and days sales in inventory are excellent, indicating efficient inventory management, the fixed asset turnover, receivables turnover, receivable days, and capital turnover ratios are poor. This suggests inefficiencies in utilizing fixed assets, collecting receivables, and overall capital deployment. The company excels in managing its inventory but struggles with other key operational aspects, which could negatively impact overall profitability and cash flow.

Coverage Ratio Summary

Coverage Score : 6.80

The coverage ratios present a mixed view. While the interest coverage ratio is excellent, indicating a strong ability to cover interest expenses, the equity dividend coverage ratio is poor, reflecting no dividend coverage. This suggests that while the company can manage its debt obligations, it is not generating sufficient earnings to provide dividends to equity holders. The company's focus on debt management is a positive, but the lack of dividend coverage may deter potential equity investors.

Solvency Ratio Summary

Solvency Score : 6.60

The solvency position is mixed. The high debt ratio and negative equity ratio are concerning, indicating high financial leverage and potential insolvency risks. However, a favorable debt-to-asset ratio provides some balance, suggesting that assets are still significantly funded by debt. The company's long-term financial stability is questionable due to its high debt levels and negative equity, which could limit its ability to raise capital and invest in future growth.

Liquidity Ratio Summary

Liquidity Score : 7.54

The liquidity position is strong, primarily due to high current and quick ratios, indicating a robust ability to meet short-term obligations. However, the low cash ratio and operating cash flow ratio suggest potential challenges in immediate cash availability and operational cash generation. While the company can cover its short-term liabilities, relying heavily on current assets other than cash may expose it to risks if these assets cannot be quickly converted to cash.