Vishwaraj Sugar Industries Ltd

Growth Ratio Summary

Growth Score : 2.80

The company's growth ratios show a concerning trend. Revenue, operating profit, and EPS growth rates are declining, indicating potential challenges in maintaining its market position. The asset growth rate is positive, suggesting some investment in assets, but the negative growth rates in key financial metrics raise concerns about the company's future performance. Addressing these declining growth rates is crucial for long-term sustainability.

Financial Ratio Summary

Financial Score : 4.00

The financial ratios present a mixed view. Cash EPS is positive, indicating some cash generation per share, but adjusted EPS, book value per share, and dividend per share are low. The company has not made any capital expenditure which indicates that the company may not be investing in future growth. Improving earnings and increasing shareholder value are key priorities.

Profitability Ratio Summary

Profitability Score : 6.80

The company's profitability ratios present a mixed picture. Gross profit margin and operating margin is average, indicating reasonable profitability from sales and operations. However, Return on equity and net margin are minimal, reflecting an inability to translate revenue into profits for equity holders. While return on assets is average, the return on capital employed is average, thus improving efficiency is critical for better performance.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company's efficiency ratios present a mixed picture. While days sales in inventory and receivable days are average, suggesting reasonable working capital management, the turnover ratios for fixed assets, inventory, receivables, and capital are low. This indicates that the company is not effectively utilizing its assets to generate revenue. Improving asset utilization could significantly enhance the company's overall financial performance.

Coverage Ratio Summary

Coverage Score : 2.00

The coverage ratios are weak, with a low-interest coverage ratio and no equity dividend coverage. This indicates that the company may struggle to meet its interest obligations and is not providing dividend coverage to equity shareholders. Improving profitability and managing debt are essential to enhance coverage ratios and ensure financial stability.

Solvency Ratio Summary

Solvency Score : 10.00

The company's solvency position is strong, characterized by a high equity ratio and minimal debt. This indicates a low level of financial risk and a strong reliance on equity financing. While this provides stability, it may also suggest a missed opportunity to leverage debt for growth, if managed responsibly. The company's assets are primarily funded by equity, offering a cushion against financial distress.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position is weak. The current, quick, and cash ratios are all at minimal levels, suggesting difficulty in meeting short-term obligations with its current assets. The operating cash flow ratio also reflects this struggle, indicating poor cash generation from operations. This situation could limit the company's flexibility in handling unforeseen expenses or investment opportunities.