Zenith Drugs Ltd

Growth Ratio Summary

Growth Score : 2.00

The company's growth ratios are negative, indicating significant challenges. Declines in revenue, operating profit, EPS, assets, and net income suggest business contraction. This could reflect market challenges or internal operational issues. The negative growth rates raise concerns about the company's future prospects and sustainability. Focus needs to be on identifying the root causes of decline and implementing corrective strategies.

Financial Ratio Summary

Financial Score : 4.20

The company's financial ratios present a mixed view. While capital expenditures are managed reasonably well, the adjusted and cash EPS are low. The book value and dividend per share are also poor. The company needs to improve its earnings and shareholder value.

Profitability Ratio Summary

Profitability Score : 9.60

The company's profitability ratios are strong. High gross profit, ROCE, ROE, operating margin, and net margin indicate efficiency in operations and good earnings generation. The return on assets is reasonably good. The company is generating profits from its assets and equity.

Efficiency Ratio Summary

Efficiency Score : 3.33

The company's efficiency ratios present a mixed picture. While the days sales in inventory is relatively reasonable, indicating effective inventory management, the fixed asset, inventory, and capital turnover ratios are low, suggesting inefficient asset utilization. The high receivable days indicate challenges in collecting payments. There is potential for improvement in converting assets into revenue and managing receivables.

Coverage Ratio Summary

Coverage Score : 6.00

The company's coverage ratios show a moderate ability to meet its interest and dividend obligations. The interest coverage ratio indicates that the company can cover its interest expenses. The equity dividend coverage ratio suggests an ability to cover dividend payments. The company is meeting its obligations.

Solvency Ratio Summary

Solvency Score : 9.00

The company exhibits strong solvency. Low debt and debt-to-equity ratios suggest minimal financial risk and a strong equity base. A high equity ratio further confirms financial stability. This allows the company greater flexibility in funding future growth and weathering economic downturns. The company's asset base is not overly burdened by debt, contributing to long-term sustainability.

Liquidity Ratio Summary

Liquidity Score : 2.68

The company's liquidity position raises concerns. The current and cash ratios are particularly weak, indicating a struggle to meet short-term obligations using liquid assets. While the quick ratio offers a slightly better outlook, the negative operating cash flow ratio suggests operational inefficiencies. Limited liquid assets may restrict flexibility in handling unforeseen expenses or investment opportunities.