Growth Ratio Summary

Growth Score : 2.80

The growth ratios of Ushanti Colour Chem Ltd reveal a concerning trend. Revenue, operating profit, and net income growth rates are poor. While the asset growth rate is strong, it is overshadowed by the negative performance in profitability metrics. The decline in operating profit and EPS growth indicates operational inefficiencies and financial difficulties. The company needs to focus on strategies to boost revenue and improve profitability to ensure sustainable growth.

Financial Ratio Summary

Financial Score : 4.00

The financial ratios of Ushanti Colour Chem Ltd present a mixed performance. Adjusted EPS, book value per share, and dividend per share are at minimal levels, while cash EPS is moderate and capital expenditures are well-managed. The company's book value per share is low, meaning the intrinsic value of the company per share is less. The cash earnings per share provide some stability, and controlled capital expenditures indicate careful investment management. Improving earnings and shareholder returns is crucial for enhancing the company's financial health.

Profitability Ratio Summary

Profitability Score : 2.00

The profitability ratios of Ushanti Colour Chem Ltd are weak across the board. Gross profit margin, return on capital employed, return on equity, return on assets, operating margin, and net margin are all at minimal levels. This indicates significant challenges in generating profits from its operations. The company struggles to convert sales into profits, and its returns on investments are limited. Improving operational efficiency and cost management is crucial to enhance profitability and ensure long-term sustainability.

Efficiency Ratio Summary

Efficiency Score : 4.67

The efficiency ratios of Ushanti Colour Chem Ltd present a mixed picture. While days sales in inventory and receivable days are well-managed, the fixed asset, inventory, receivables, and capital turnover ratios are very low. This indicates that the company is not efficiently utilizing its assets to generate sales. Low turnover ratios suggest that the company may have excess inventory, slow-paying customers, or underutilized fixed assets. Improving asset utilization could significantly enhance the company's operational performance.

Coverage Ratio Summary

Coverage Score : 2.00

The coverage ratios for Ushanti Colour Chem Ltd are weak, primarily due to low-interest coverage. The company's ability to cover its interest expenses is limited, and the equity dividend coverage is non-existent. The interest coverage ratio indicates a struggle to meet debt obligations from its earnings, and the lack of equity dividend coverage suggests that the company is not providing returns to its shareholders through dividends. Improving profitability and cash flow is essential to enhance these coverage ratios.

Solvency Ratio Summary

Solvency Score : 10.00

The solvency position of Ushanti Colour Chem Ltd is exceptionally strong, characterized by high equity and minimal debt. The debt, debt-to-equity, and debt-to-asset ratios are all at zero, indicating that the company relies almost entirely on equity financing. This conservative approach provides a buffer against financial distress and reduces the risk of bankruptcy. However, the absence of debt may also limit the company's ability to leverage opportunities for growth and expansion, as debt can be a cost-effective source of capital.

Liquidity Ratio Summary

Liquidity Score : 2.00

The liquidity position of Ushanti Colour Chem Ltd is weak. The current, quick, and cash ratios are all at minimal levels, suggesting a limited ability to meet short-term obligations. While the company may not face immediate solvency issues due to its debt-free status, its inability to convert assets into cash quickly could hinder its operational flexibility. A low operating cash flow ratio further indicates challenges in generating cash from its core business activities. The company needs to improve its management of current assets and liabilities to enhance its liquidity position.