Growth Ratio Summary

Growth Score : 6.00

Va Tech Wabag Ltd demonstrates strong growth potential. The company has experienced significant increases in operating profit, EPS, and assets. This indicates effective management and promising future prospects. However, the revenue and net income growth rates are low, which could be a concern. Overall, the company exhibits a positive growth trajectory, driven by operational improvements and asset expansion.

Financial Ratio Summary

Financial Score : 5.20

The financial ratios of Va Tech Wabag Ltd present a mixed picture. While the book value per share is high, the adjusted EPS and cash EPS are low. The company is not distributing dividends but has zero capital expenditure. Overall, the company needs to focus on improving its earnings per share and generating more cash from its operations.

Profitability Ratio Summary

Profitability Score : 4.40

The profitability ratios for Va Tech Wabag Ltd present a mixed performance. While the return on capital employed (ROCE) is high, the gross profit margin, return on equity (ROE), operating margin, and net margin are low. This suggests that the company is generating good returns on its capital investments but struggling to translate this into overall profitability. Focusing on improving margins and operational efficiency is essential for sustainable profitability.

Efficiency Ratio Summary

Efficiency Score : 4.67

The efficiency ratios present a mixed picture for Va Tech Wabag Ltd. While days sales in inventory and receivable days are high, the turnover ratios for fixed assets, inventory, receivables, and capital are low. This suggests that the company may not be utilizing its assets efficiently. However, the high days sales in inventory and receivable days could be due to the nature of the projects undertaken by the company, which often have long lead times and payment cycles. There is potential for improvement in asset utilization and working capital management.

Coverage Ratio Summary

Coverage Score : 5.60

The coverage ratios indicate that Va Tech Wabag Ltd has an adequate ability to meet its interest obligations but lacks equity dividend coverage. The interest coverage ratio is reasonable, suggesting that the company can comfortably cover its interest expenses. However, the absence of equity dividend coverage is a drawback, as it may not be returning value to shareholders through dividends. Overall, the company needs to focus on generating sufficient earnings to cover both interest and dividend payments.

Solvency Ratio Summary

Solvency Score : 10.00

Va Tech Wabag Ltd exhibits strong solvency. The company's capital structure is robust, with a high equity ratio and minimal reliance on debt. This indicates a low risk of financial distress and a strong ability to meet long-term obligations. The absence of debt also provides financial flexibility for future investments and growth opportunities. This solid capital base is a significant strength for the company.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position is weak, indicating potential challenges in meeting short-term obligations. The low current, quick, and cash ratios suggest that the company may struggle to convert its assets into cash quickly. This could pose risks if immediate payments are required. While the operating cash flow ratio is also low, it reflects the company's ability to generate cash from its core operations. Improvement in working capital management is essential to enhance liquidity.