Zenith Exports Ltd

Growth Ratio Summary

Growth Score : 10.00

The company exhibits very strong growth across all key metrics, including revenue, operating profit, earnings per share, assets, and net income. This indicates robust expansion and effective management strategies. The consistent growth suggests a promising future and strong market positioning. However, sustaining this high level of growth will require continued innovation and strategic investments to maintain competitiveness.

Financial Ratio Summary

Financial Score : 4.00

The financial ratios indicate mixed performance. Capital expenditures are well-managed, reflecting prudent investments. However, adjusted earnings per share, cash earnings per share, book value per share, and dividend per share all have very low values. This suggests potential challenges in profitability and shareholder returns. Improving earnings and shareholder value should be a key focus.

Profitability Ratio Summary

Profitability Score : 6.80

The company presents a mixed profitability profile. While returns on capital employed and equity are very good, the gross and operating margins are poor, and the return on assets is negative. This suggests that while the company is effectively using capital and equity, it struggles with basic profitability and asset utilization. Improving gross and operating margins, as well as achieving positive return on assets, is essential for sustainable profitability.

Efficiency Ratio Summary

Efficiency Score : 3.67

The company's efficiency ratios present a mixed picture. While the fixed asset turnover ratio is good, the inventory turnover, receivable days, days sales in inventory, and capital turnover ratios are not so good. This suggests that the company faces challenges in managing its inventory, collecting receivables, and utilizing its capital efficiently. Addressing these inefficiencies could significantly improve the company's operational performance. The weighted average calculation emphasizes the need for recent improvements in these areas to boost overall efficiency.

Coverage Ratio Summary

Coverage Score : 4.40

The company's coverage ratios present a mixed outlook. The interest coverage ratio is average, indicating some ability to cover interest expenses, but there is no equity dividend coverage. This suggests a cautious approach to dividend payouts, likely aimed at retaining earnings for reinvestment or managing financial uncertainties. Enhancing both interest and dividend coverage would provide greater financial flexibility and security.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits perfect solvency, with no debt. This indicates that the company is entirely financed by equity, providing a strong financial foundation and minimal risk of financial distress. The absence of debt offers considerable financial flexibility and reduces vulnerability to economic downturns. However, the company might be missing opportunities to leverage debt for growth and enhanced returns on equity, as strategic use of debt can sometimes boost financial performance.

Liquidity Ratio Summary

Liquidity Score : 8.40

The company exhibits strong liquidity, indicating a robust ability to meet its short-term obligations. High current, quick, and cash ratios suggest the company holds ample liquid assets. However, the negative operating cash flow ratio indicates challenges in generating cash from its operations, which could pose risks if not addressed. The weighted average calculation considers recent performance, highlighting the need to improve operational cash generation for sustained liquidity.