Zodiac Clothing Company Ltd

Growth Ratio Summary

Growth Score : 3.20

The company shows mixed growth performance. While operating profit growth has been volatile, revenue, EPS, asset, and net income growth rates are low, indicating limited overall expansion. This suggests the company is struggling to achieve sustainable growth across key areas. The fluctuations in operating profit growth indicate instability, while the low growth rates in other areas raise concerns about the company's long-term prospects.

Financial Ratio Summary

Financial Score : 4.00

The company's financial performance is mixed. While capital expenditures are well-managed, adjusted EPS, book value per share, and dividend per share are low. However, cash EPS is adequate, providing some financial flexibility. Overall, the company needs to improve its financial metrics to enhance shareholder value and ensure long-term sustainability.

Profitability Ratio Summary

Profitability Score : 2.00

The company's profitability is weak. Gross profit, return on capital employed, return on equity, return on assets, operating margin, and net margin are all at minimal levels, indicating poor profitability. This suggests the company is struggling to generate profits from its operations. The company needs to improve its operational efficiency and cost management to enhance its profitability.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company shows mixed efficiency. While days sales in inventory and receivable days are well-managed, fixed asset, inventory, receivables, and capital turnover ratios are low, suggesting poor asset utilization. This indicates the company may not be effectively using its assets to generate revenue. While efficient inventory and receivables management are positive, the overall asset turnover needs improvement to enhance operational efficiency.

Coverage Ratio Summary

Coverage Score : 2.00

The company's coverage ratios are weak, particularly concerning the interest coverage ratio, which is negative. This indicates the company is struggling to cover its interest expenses with its earnings, raising concerns about its debt sustainability. The equity dividend coverage ratio is also low, suggesting limited capacity to cover dividend payments. Overall, the company's ability to meet its financial obligations is questionable.

Solvency Ratio Summary

Solvency Score : 10.00

The company demonstrates strong solvency. The debt and debt to asset ratios are at a minimal level, indicating a very low reliance on debt financing. The equity ratio is high, reflecting a strong equity base. This suggests the company is primarily financed by equity, which reduces financial risk and enhances stability. While limited debt can restrict growth opportunities, the strong equity position provides a solid foundation for long-term sustainability.

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, indicating a poor ability to meet short-term obligations with its current assets. This suggests potential difficulties in paying immediate liabilities. The low operating cash flow ratio also raises concerns about the company's ability to generate cash from its operations to cover short-term needs. While the company may be managing its working capital tightly, there is a risk of facing liquidity crunches if sales decline or payments are delayed.