Castle Traders Annual Reports, Balance Sheet and Financials

Castle Traders Limited Balance Sheet (Rs in Thousands)

Castle Traders Limited Profit & Loss Statement (Rs in Thousands)

 Castle Traders Limited Consolidated Cash Flow Statement (Rs in Thousands)

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flow from Operating Activities

In 2024, the net profit before tax and extraordinary items is reported at Rs. 2,091 thousand, a slight increase from Rs. 1,759 thousand in 2023. After adjustments, such as depreciation of Rs. 84 thousand and an interest income adjustment of Rs. -1,050 thousand, cash flows before working capital changes are Rs. 1,126 thousand for 2024, significantly lower than 2023’s figure of Rs. 1,742 thousand. Working capital changes have varied impacts: inventories have seen a reduction (Rs. -4,456 thousand), and trade payables have increased by Rs. 940 thousand, enhancing liquidity. However, adjustments for other current assets and liabilities lead to a final cash outflow from operating activities of Rs. (541) thousand in 2024, contrasting with a cash inflow of Rs. 11,249 thousand in 2023. After accounting for direct taxes, net cash flow from operating activities in 2024 is Rs. (1,149) thousand, a significant decline compared to Rs. 10,715 thousand in 2023. This suggests lower operational efficiency and cash generation in 2024.

Cash Flow from Investing Activities

In investing activities, there is no expenditure on fixed assets in 2024, unlike in 2023 where Rs. 233 thousand was spent. Interest income of Rs. 1,050 thousand boosts the cash inflow from investing activities, resulting in a net positive cash inflow of Rs. 1,050 thousand for 2024. In contrast, 2023 had a net inflow of Rs. 388 thousand due to a smaller interest income and other investments. This improvement in 2024 indicates that the company had higher returns from investments.

Cash Flow from Financing Activities

The cash flow from financing activities shows a net outflow of Rs. (1,000) thousand in 2024, attributed to loan repayments. This is smaller than the Rs. (10,000) thousand outflow in 2023, reflecting a decrease in loan repayments or borrowing needs. This reduced outflow in 2024 might imply less reliance on external funding or a more stable financial position.

Financial Ratios of Castle Traders Limited

Here is a summary of the financial and operational metrics for Castle Traders Limited for the year 2024 and 2023:

Current Ratio

The current ratio, which measures the company’s ability to cover its short-term liabilities with its short-term assets, stands at 4.43 in 2024, down from a high 10.72 in 2023. Although a ratio above 1 indicates that the company can meet its current obligations, the decrease suggests a decline in liquidity. While still strong, this drop could signal a reduction in cash or other current assets.

Return on Equity (ROE)

The return on equity ratio, indicating how efficiently the company generates profit from shareholders ' equity, has increased dramatically from 447.75% in 2023 to an extraordinary 1584.49% in 2024. This high ROE suggests that the company has either significantly increased its profitability or reduced its equity base, possibly due to high leveraging or retained earnings. Such a high ROE might indicate effective use of equity, though it could also imply financial risk if driven by high debt.

Inventory Turnover Ratio

The inventory turnover ratio, calculated in days, stands at 4.95 days in 2024, with no comparable data for 2023. This ratio indicates that the company converts its inventory to sales very quickly, likely due to high demand or efficient inventory management. A low number of days is generally positive, showing quick inventory movement and minimizing holding costs.

Trade Receivables Turnover Ratio

In 2024, the trade receivables turnover ratio is not available, but in 2023, it was 30.88 times. A high receivables turnover ratio generally means the company is efficient in collecting payments from its customers, which positively affects cash flow. The absence of this figure in 2024 might suggest changes in credit policies or unavailability of comparable data.

Trade Payables Turnover Ratio

The trade payables turnover ratio has surged to 5238.97 times in 2024 from 339.21 times in 2023. This substantial increase suggests that the company is paying its suppliers extremely quickly. While this can indicate strong liquidity, it may also imply that the company is reducing its payable periods, possibly to maintain favorable supplier relationships or to avoid interest on late payments.

Net Capital Turnover Ratio

The net capital turnover ratio, which shows how effectively the company is using its working capital to generate sales, rose to 15.37 times in 2024 from 13.65 in 2023. This increase indicates improved efficiency in using net working capital to drive revenue, which can be a positive signal for operational efficiency.

Net Profit Ratio

The net profit ratio remains steady at 0.90% in both years, indicating stable profitability relative to revenue. This ratio shows that the company is maintaining a consistent profit margin, though it remains relatively low, suggesting limited profitability on sales after expenses.

Return on Capital Employed (ROCE)

The return on capital employed ratio, which measures the returns generated from all capital sources, is 1.20% in 2024, slightly down from 1.22% in 2023. This small decrease suggests that while the company remains fairly consistent in its capital efficiency, there is a slight drop in returns relative to the capital invested.