Growth Ratio Summary

Growth Score : 4.00

Westlife Foodworld demonstrates mixed growth. High growth in operating profit and asset expansion is a positive sign, indicating efficient management and strategic investments. However, negative trends in revenue and net income, along with declining earnings per share, raise concerns about sustainable profitability. The company needs to address these inconsistencies to ensure balanced and reliable growth across all key metrics.

Financial Ratio Summary

Financial Score : 4.40

Westlife Foodworld's financial metrics present a mixed picture. While capital expenditures management is strong and dividend per share is reasonable, adjusted earnings per share and book value per share are low. The company's cash earnings per share is also not very strong. Addressing these areas is essential for improving investor returns and overall financial attractiveness.

Profitability Ratio Summary

Profitability Score : 4.80

Westlife Foodworld showcases strong profitability driven by effective use of capital and assets, as indicated by returns on capital employed and assets. However, low gross profit, operating and net margins are concerning, pointing to potential issues with cost management or pricing strategies. Focusing on improving these margin ratios, while maintaining high returns on capital and assets, is essential for achieving sustainable and comprehensive profitability.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company faces substantial challenges in efficiency. Despite high scores in Receivable days and Days sales in inventory, the low Fixed Asset, Inventory and Capital Turnover ratios. This is offset by long receivable days and high days in inventory. Improving asset utilization and managing inventory effectively are essential for enhancing overall operational performance and financial outcomes.

Coverage Ratio Summary

Coverage Score : 3.20

The company demonstrates a mixed coverage ability. The interest coverage ratio indicates some capacity to handle interest expenses, but the equity dividend coverage ratio is low, highlighting potential difficulties in covering dividend payments with equity. Enhancing overall coverage capacity is crucial for maintaining financial flexibility and investor confidence, particularly in the face of economic uncertainties.

Solvency Ratio Summary

Solvency Score : 5.80

Westlife Foodworld exhibits reasonable solvency. The debt to asset ratio indicates a moderate use of debt to finance assets, which is within an acceptable range. However, high debt to equity ratio suggests a reliance on debt financing. While leveraging debt can support growth, it also increases financial risk. Balancing debt and equity is crucial for maintaining long-term financial health, especially in a dynamic industry like hospitality.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position are notably weak. Low current, quick, and cash ratios suggest potential difficulties in meeting short-term obligations. While the consumer services sector can have fluctuating cash needs, these ratios indicate a high reliance on operational cash flow. The company may face challenges if immediate liabilities arise. The weighted average calculation underscores the consistent low liquidity over the observed period, requiring careful monitoring and strategic adjustments.