Ecosure Pulpmolding Technologies Limited

Ecosure Pulpmolding Technologies Limited Balance Sheet (Rs in Lakhs)

Ecosure Pulpmolding Technologies Limited Profit & Loss Statement (Rs in Lakhs)

 Financial Ratios of Ecosure Pulpmolding Technologies Limited

Here is a summary of the financial and operational metrics for Ecosure Pulpmolding Technologies Limited for the years 2023 and 2022:

Current Ratio (1.09 in 2023 vs. 1.03 in 2022)

Insight: The current ratio has improved slightly, indicating better short-term liquidity. A ratio above 1 suggests that the company has more current assets than current liabilities, which is generally a positive sign. However, the improvement is modest, suggesting that while liquidity is adequate, it may not be significantly strong.

Debt-to-Equity Ratio (3.55 in 2023 vs. 2.38 in 2022)

Insight: This ratio has significantly increased, suggesting that the company has become more leveraged, relying more on debt relative to equity. A ratio of 3.55 indicates high financial risk, as the company is using over three times as much debt as equity to finance its operations. This could lead to higher interest obligations and vulnerability to economic downturns.

Debt Service Coverage Ratio (0.95 in 2023 vs. 0.97 in 2022)

Insight: A slight decline in the debt service coverage ratio indicates that the company 's ability to cover its debt obligations from its operating income has weakened. A ratio below 1 suggests that the company may struggle to meet its debt obligations, potentially leading to financial distress if this trend continues.

Inventory Turnover Ratio (0.17 in 2023 vs. 0.15 in 2022)

Insight: The increase in the inventory turnover ratio indicates that the company is managing its inventory slightly more efficiently, selling and replacing inventory more frequently. However, both values are quite low, suggesting potential issues with inventory management or slow-moving products.

Trade Receivables Turnover Ratio (5.33 in 2023 vs. 3.32 in 2022)

Insight: A significant improvement in this ratio indicates that the company is collecting receivables more efficiently than in the previous year. This could imply better credit policies or an improvement in customer payment behavior, enhancing cash flow.

Net Profit Ratio (2.12% in 2023 vs. 2.26% in 2022)

Insight: The slight decrease in the net profit ratio suggests that profitability has decreased slightly, which may be due to rising costs or lower revenue growth. Maintaining profitability while managing costs will be crucial for sustainability.

Return on Investment (ROI) (61.49% in 2023 vs. 84.89% in 2022)

Insight: The significant decline in ROI indicates that the returns generated on investments have decreased substantially. This may suggest inefficiencies in capital utilization or reduced profitability from investments, which needs to be addressed.