Growth Ratio Summary

Growth Score : 3.00

Unitech's growth metrics present a mixed picture. While revenue growth is lagging, the company has seen substantial improvements in operating profit and net income. The significant asset growth suggests potential expansion or investment in new projects. However, the negative earnings per share growth indicates that profitability at the shareholder level remains a challenge.

Financial Ratio Summary

Financial Score : 1.00

Unitech's financial ratios reveal significant challenges. Negative adjusted and cash earnings per share, combined with a negative book value per share, indicate poor profitability and a deteriorating equity base. While capital expenditures are managed effectively, the overall financial health is weak, raising concerns about long-term sustainability.

Profitability Ratio Summary

Profitability Score : 1.00

Unitech's profitability ratios are extremely poor, reflecting deep-seated financial challenges. Negative gross profit, operating, and net margins indicate that the company is struggling to generate profit from its core operations. The negative return on assets and return on capital employed further highlight the company's inability to utilize its assets and capital effectively. This suggests a need for significant operational and strategic overhaul to improve profitability.

Efficiency Ratio Summary

Efficiency Score : 1.00

The company's efficiency ratios are generally poor, indicating significant challenges in managing assets effectively. The low inventory and receivables turnover ratios suggest that Unitech is taking a long time to convert inventory into sales and collect payments from customers. The high number of days sales in inventory and receivable days further confirms these inefficiencies. This suggests a need for improved working capital management to enhance operational performance.

Coverage Ratio Summary

Coverage Score : 1.00

The company's coverage ratios are poor, indicating a high risk of financial distress. The negative interest coverage ratio suggests that Unitech is unable to meet its interest obligations from its operating income. This situation raises significant concerns about the company's ability to service its debt and maintain financial stability.

Solvency Ratio Summary

Solvency Score : 4.00

Unitech's solvency shows a moderate level of stability. The debt ratio is within an acceptable range, indicating a reasonable balance between debt and assets. A low debt-to-equity ratio suggests that the company is not overly reliant on debt financing. However, the negative interest coverage ratio raises concerns about the company's ability to meet its interest obligations, potentially leading to financial distress.

Liquidity Ratio Summary

Liquidity Score : 1.00

The company's liquidity position is weak. The current, quick, and cash ratios are all below the threshold, indicating difficulties in meeting short-term obligations. This suggests a high reliance on current assets to cover immediate liabilities, with very limited liquid assets available. This situation poses significant risks if the company faces unexpected financial demands or economic downturns. Given the capital-intensive nature of the construction industry, maintaining adequate liquidity is crucial, and Unitech needs to address this deficiency urgently.