Growth Ratio Summary

Growth Score : 4.00

The company's growth ratios present a mixed outlook. While operating profit growth rate and asset growth rate are positive, the negative revenue growth rate, EPS growth, and net income growth rate raise concerns. Declining revenue and earnings could impact the company's ability to sustain operations and invest in future growth. Strategies to stimulate revenue growth and improve profitability are essential for long-term success.

Financial Ratio Summary

Financial Score : 3.60

The financial ratios paint a concerning picture of the company's financial health. Negative adjusted EPS, cash EPS, and book value per share indicate potential challenges in generating earnings and maintaining shareholder value. While capital expenditures are being managed, the overall financial performance suggests underlying issues that need to be addressed for sustainable growth.

Profitability Ratio Summary

Profitability Score : 2.00

The company's profitability ratios indicate significant challenges in generating profits. Low gross profit margin, negative return on capital employed (ROCE), return on equity (ROE), return on assets (ROA), operating margin, and net margin suggest that the company is struggling to convert revenue into profits. Improving cost management, operational efficiency, and pricing strategies are essential for enhancing profitability.

Efficiency Ratio Summary

Efficiency Score : 6.00

The efficiency ratios show mixed performance. While the receivables turnover ratio and receivable days suggest effective credit and collection policies, the low inventory turnover and high days sales in inventory indicate challenges in inventory management. Efficiently managing inventory and converting receivables into cash are crucial for optimizing working capital and improving overall operational efficiency.

Coverage Ratio Summary

Coverage Score : 2.00

The company's coverage ratio, particularly the interest coverage ratio, indicates a limited ability to meet its interest obligations. This suggests that the company's earnings are barely sufficient to cover its interest expenses, increasing financial risk. Improving profitability and managing debt levels are crucial for enhancing the interest coverage ratio and ensuring financial stability.

Solvency Ratio Summary

Solvency Score : 6.36

The company's solvency ratios present a mixed picture. While the debt-to-equity ratio suggests a favorable capital structure, the debt ratio and interest coverage ratio indicate potential challenges in managing debt. The negative interest coverage ratio, in particular, raises concerns about the company's ability to meet its interest obligations. This could affect its long-term financial stability and creditworthiness. Prudent debt management and strategies to improve earnings are essential for maintaining solvency.

Liquidity Ratio Summary

Liquidity Score : 0.00

The company's liquidity position is very poor, indicating significant challenges in meeting its short-term obligations. Low current, quick, and cash ratios suggest an inability to cover immediate liabilities with its most liquid assets. This situation could lead to difficulties in paying suppliers, managing operational expenses, and maintaining smooth business operations. The textile industry's working capital requirements may exacerbate these liquidity issues, making it crucial for the company to improve its management of current assets and liabilities.