Viji Finance Ltd

Growth Ratio Summary

Growth Score : 6.00

The company exhibits strong expansion in its core business activities, with significant increases in revenue, operating profit, and its overall asset base. This indicates successful market penetration or business expansion. However, this top-line growth has not translated into increased profitability for shareholders. Both earnings per share and net income have shown a negative trend, suggesting that despite growing the business, the final profit is shrinking, which is a key area of concern for investors.

Financial Ratio Summary

Financial Score : 4.00

This area highlights significant challenges for the company from a shareholder value perspective. Key metrics like earnings per share and the intrinsic book value per share are low, indicating weak returns on a per-share basis. The company also does not pay dividends to its shareholders. While there has been some investment in capital assets, the overall financial returns generated for investors appear to be a primary weakness in the company's financial profile.

Profitability Ratio Summary

Profitability Score : 9.20

The company demonstrates exceptional profitability, a core strength in its financial performance. It excels at converting revenue into profit at every level, from gross profit down to the final net profit. Furthermore, it generates very strong returns on the capital invested by both equity holders and lenders, based on the metrics. This indicates highly efficient use of capital to create profits. The only point of weakness noted is a lower return generated from its total asset base.

Efficiency Ratio Summary

Efficiency Score : 6.00

The company's operational efficiency presents a mixed picture. A clear strength is its excellent performance in collecting payments from customers, turning its receivables into cash very quickly. This is a significant positive for cash flow management. Conversely, the company appears to be struggling to generate sufficient revenue from its fixed assets and its total capital. This suggests that while cash collection is strong, the underlying assets are not being utilized to their full potential to drive sales.

Coverage Ratio Summary

Coverage Score : 5.60

The company's ability to meet its interest payments on outstanding debt is solid, indicating that its earnings are sufficient to cover these crucial financial obligations without strain. This provides a buffer and reduces the risk associated with its borrowing. On the other hand, the company does not currently distribute profits to shareholders in the form of dividends, as reflected in its dividend-related metrics. The focus appears to be on retaining earnings within the business.

Solvency Ratio Summary

Solvency Score : 8.40

The company demonstrates a strong and stable long-term financial position. Its reliance on debt to finance its assets is well-managed and sits at a healthy level. The balance between debt and owner's funds (equity) is favorable, indicating a low risk of financial distress from its long-term obligations. This conservative debt structure provides a solid foundation for future operations and resilience against economic downturns, which is a positive signal for long-term investors and creditors.

Liquidity Ratio Summary

Liquidity Score : 7.14

The company’s liquidity position shows a significant contrast. On one hand, it possesses an exceptionally high level of current assets relative to its short-term liabilities, suggesting a very strong buffer to meet immediate obligations. This indicates a low risk of default on its short-term debts. On the other hand, its position in readily available cash is weak, and more critically, the business's core operations are consistently consuming more cash than they generate. This highlights a potential challenge in converting its assets into cash to fund day-to-day activities.