Growth Ratio Summary

Growth Score : 4.00

UPL Ltd demonstrates mixed growth performance. Operating profit and asset growth are strong, indicating positive momentum in these areas. However, revenue and net income growth are weak, and earnings per share growth is negative. This suggests that while the company is managing its assets and operations effectively, it is facing challenges in translating these efforts into revenue and profit growth. Addressing the revenue and net income growth issues is crucial for sustained financial health.

Financial Ratio Summary

Financial Score : 6.80

UPL Ltd demonstrates a strong financial position. Book value per share is high, indicating substantial equity value. Cash earnings and dividend per share are also solid. However, adjusted earnings per share is low. Overall, the company showcases a commendable financial foundation, with opportunities to improve adjusted earnings per share for a more balanced performance.

Profitability Ratio Summary

Profitability Score : 4.60

UPL Ltd demonstrates mixed profitability. Return on capital employed and return on assets are good, indicating efficient utilization of capital and assets to generate profits. However, gross profit, return on equity, operating and net margins are low. While ROCE and ROA contribute positively, improving gross profit, ROE, and margins can enhance overall profitability and competitiveness.

Efficiency Ratio Summary

Efficiency Score : 4.67

UPL Ltd demonstrates mixed efficiency. While days sales in inventory and receivable days are well-managed, the fixed asset, inventory, receivables, and capital turnover ratios are low. This suggests that the company is not fully utilizing its assets to generate revenue. While efficient inventory and receivables management contribute positively, improving asset turnover can enhance overall operational efficiency and profitability.

Coverage Ratio Summary

Coverage Score : 3.20

The coverage ratio reflects a mixed performance. The interest coverage ratio is relatively low, indicating potential difficulties in meeting interest obligations. The equity dividend coverage ratio is minimal. Improving interest coverage is essential to ensure financial stability and reduce the risk of default. The company needs to focus on improving its earnings and managing its debt obligations effectively to enhance its coverage ratios.

Solvency Ratio Summary

Solvency Score : 10.00

UPL Ltd showcases very strong solvency, reflecting a solid financial structure. The company maintains a low debt ratio and debt-to-equity ratio, complemented by a high equity ratio and a low debt-to-asset ratio. This indicates a conservative approach to leverage and a strong reliance on equity financing. Such a robust solvency position provides a buffer against financial distress and enables the company to pursue growth opportunities with less risk.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position raises concerns, as indicated by the low score. The current, quick, and cash ratios are all notably low, suggesting potential difficulties in meeting short-term obligations. The operating cash flow ratio also reflects this weakness. While some companies in the Chemical & Petrochemicals sector may face unique challenges in maintaining high liquidity due to the nature of their operations, addressing these liquidity issues is critical for UPL Ltd to ensure financial stability.