Growth Ratio Summary

Growth Score : 4.00

The growth ratios present a mixed picture. While the operating profit and asset growth rates are strong, the revenue and net income growth rates are low. The earnings per share growth is also low, suggesting the company's profitability has not kept pace with its asset growth. The company shows signs of growth potential but needs to focus on improving revenue and net income to achieve sustainable growth.

Financial Ratio Summary

Financial Score : 5.00

The financial ratios provide a mixed view. Capital expenditure is excellent, suggesting efficient use of resources. However, adjusted EPS and book value per share are low, indicating potential areas for improvement in earnings. The dividend per share is average, providing some return to investors. The company needs to balance its financial performance to enhance overall financial health.

Profitability Ratio Summary

Profitability Score : 4.40

The profitability ratios present a mixed view. The return on capital employed is strong, indicating efficient use of capital. However, the gross profit, return on equity, operating, and net margins are low, suggesting potential areas for improvement in profitability. The company needs to focus on improving its margins and overall profitability to enhance its financial performance. The return on assets is moderate, showcasing some efficiency in utilizing assets.

Efficiency Ratio Summary

Efficiency Score : 3.33

The efficiency ratios indicate mixed performance. The receivable days are excellent, suggesting efficient collection of revenues. However, the inventory turnover is low, resulting in high days sales in inventory, which suggests challenges in inventory management. The company needs to improve inventory handling to reduce holding costs and improve overall efficiency. Other turnover ratios are low, signaling underutilization of assets.

Coverage Ratio Summary

Coverage Score : 4.40

The coverage ratios present a mixed outlook. The interest coverage ratio is adequate, indicating the company can meet its interest obligations. However, the equity dividend coverage ratio is low, which might concern investors seeking dividends. The company should balance debt management with equity returns to maintain investor confidence. Overall, the company's ability to cover its financial obligations is reasonable.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits strong solvency, indicating a solid financial structure. Its equity ratio is high, and its debt ratios are low, suggesting it relies more on equity than debt to finance its assets. This financial strategy provides a buffer against financial distress. The company appears to be well-positioned to manage its long-term liabilities and financial obligations, contributing to financial stability.

Liquidity Ratio Summary

Liquidity Score : 2.00

The liquidity position reveals potential challenges for Universal Cables Ltd. The current, quick, and cash ratios are notably low, suggesting difficulties in meeting short-term obligations. While the operating cash flow ratio is also low, the company might face issues in converting its assets into cash quickly to cover its immediate liabilities. This situation could limit the company's flexibility in handling unforeseen expenses or investment opportunities. The low liquidity ratios may indicate a need to improve working capital management.