Usha Financial Services Ltd

Growth Ratio Summary

Growth Score : 8.00

The company exhibits strong growth in revenue, operating profit, assets, and net income, indicating robust expansion and market performance. However, a decline in earnings per share (EPS) growth is a cause for concern. Overall, the company demonstrates strong growth potential, but the EPS trend needs to be addressed to ensure sustainable financial performance.

Financial Ratio Summary

Financial Score : 4.00

The company's financial ratios present a mixed outlook. The adjusted and cash earnings per share are low. The book value per share is also low. There is no dividend per share payout. However, the company has no capital expenditures (CapEx). Overall, the financial performance needs considerable improvement to ensure stability.

Profitability Ratio Summary

Profitability Score : 10.00

The company exhibits very strong profitability, with high gross profit margin, return on capital employed (ROCE), return on equity (ROE), return on assets (ROA), operating margin, and net margin. This indicates that the company is efficiently managing its operations and generating substantial profits. Overall, the company demonstrates excellent profitability.

Efficiency Ratio Summary

Efficiency Score : 5.67

The company demonstrates mixed efficiency. The fixed asset turnover ratio indicates a reasonable level of efficiency in utilizing fixed assets. However, very low inventory and receivables turnover ratios suggest poor asset management. The days sales in inventory and receivable days are excellent. The capital turnover ratio is very low, indicating inefficient use of capital. Overall, there are significant inefficiencies that need to be addressed.

Coverage Ratio Summary

Coverage Score : 4.40

The company's coverage ratios indicate mixed performance. The interest coverage ratio suggests a reasonable ability to meet interest obligations from its earnings. However, the equity dividend coverage ratio is very low, indicating limited ability to cover dividends with available equity earnings. Overall, the company needs to improve its dividend coverage to enhance financial stability.

Solvency Ratio Summary

Solvency Score : 7.80

The company demonstrates reasonable solvency, with a balanced debt structure. The debt ratio and debt-to-equity ratio suggest a moderate level of debt relative to assets and equity. A good equity ratio provides a solid financial cushion. The debt-to-asset ratio indicates that a notable portion of the company's assets are financed by debt which is a good sign. Overall, the company's solvency is reasonably managed.

Liquidity Ratio Summary

Liquidity Score : 6.72

The company's liquidity position presents a mixed picture. Strong current and quick ratios indicate a good ability to meet short-term obligations with liquid assets. However, very low cash and negative operating cash flow ratios are a significant concern, suggesting potential difficulties in generating cash from operations and reliance on current assets for immediate needs. While the current and quick ratios are healthy, the underlying cash flow issues need attention to ensure sustained liquidity.