Thinking Hats Entertainment Solutions Ltd

Growth Ratio Summary

Growth Score : 8.80

The company exhibits strong growth, driven by significant increases in revenue and assets. However, the negative operating profit growth rate raises concerns about the sustainability and quality of this growth. While earnings per share and net income have also grown substantially, the overall picture is somewhat clouded by the operating profit decline. The company needs to ensure that its growth is accompanied by improved profitability to maintain long-term financial health.

Financial Ratio Summary

Financial Score : 3.20

The company's financial ratios indicate some areas of concern. The adjusted earnings per share and book value per share are low, suggesting potential challenges in profitability and asset valuation. The company does not offer dividend per share. However, the capital expenditures are at an average level. Overall, these ratios suggest the company needs to focus on improving its financial performance to enhance shareholder value.

Profitability Ratio Summary

Profitability Score : 10.00

The company's profitability ratios are strong, reflecting efficient operations and a healthy bottom line. The high gross profit margin, return on capital employed (ROCE), return on equity (ROE), and return on assets (ROA) indicate that the company is generating substantial profits from its investments and assets. The operating margin and net margin further confirm this, indicating effective cost management and strong overall profitability. These robust profitability metrics position the company well within its industry.

Efficiency Ratio Summary

Efficiency Score : 5.00

The company's efficiency ratios present a mixed picture. While the fixed asset turnover ratio is strong, indicating effective use of fixed assets to generate revenue, other metrics raise concerns. The inventory turnover ratio is low, suggesting possible issues with inventory management. The receivables turnover ratio is also relatively low, indicating slow collection of receivables. The high receivable days and low capital turnover ratio further highlight inefficiencies in working capital management. Addressing these areas could improve overall operational efficiency.

Coverage Ratio Summary

Coverage Score : 6.80

The company's coverage ratios present a mixed outlook. The interest coverage ratio is relatively strong, indicating an ability to comfortably meet its interest obligations. However, the lack of equity dividend coverage is a concern, suggesting that the company is not currently covering its dividend payments with available earnings. This could impact investor confidence and the company's ability to attract and retain shareholders.

Solvency Ratio Summary

Solvency Score : 10.00

The company's solvency position is strong, indicating a solid financial foundation. The low debt ratio and debt-to-equity ratio suggest a conservative approach to financing, with minimal reliance on debt. The high equity ratio reflects a strong ownership stake and financial stability. The debt to asset ratio further reinforces this, indicating that a small portion of the company's assets are financed by debt. This conservative capital structure reduces financial risk and enhances the company's ability to weather economic downturns and invest in future growth opportunities.

Liquidity Ratio Summary

Liquidity Score : 5.36

The company's liquidity position shows a mix of strengths and weaknesses. While the quick ratio suggests an ability to meet short-term obligations with its most liquid assets, the current ratio indicates there might be some difficulty in covering current liabilities with current assets. The low cash ratio and operating cash flow ratio are concerning, implying a limited ability to cover immediate liabilities with cash and a potential struggle to generate sufficient cash flow from operations. This mixed performance suggests some vulnerability in managing short-term financial obligations.