Hicks Thermometers India Limited | Balance Sheet and Financials

Hicks Thermometers India Limited Balance Sheet (Rs in lakhs)

Hicks Thermometers India Limited Profit & Loss Statement (Rs in lakhs)

Hicks Thermometers India Limited Consolidated Cash Flow Statement (Rs in lakhs)

Here is the analysis of cash flow statement of 2023 and 2022:

Cash Flow from Operating Activities (CFO):

CFO for 2023: 359.4

CFO for 2022: 1,119.10

Cash generated from operating activities decreased significantly from 1,119.10 in 2022 to 359.4 in 2023. This decline could be attributed to various factors such as a decrease in operating profits, changes in working capital, or other operational adjustments.

Cash Flow from Investing Activities (CFI):

CFI for 2023: -87.42

CFI for 2022: -174.74

Cash used in investing activities decreased from -174.74 in 2022 to -87.42 in 2023. This could indicate a reduction in investments in tangible assets and non-current investments, which may be a strategic decision to conserve cash or focus on other areas of the business.

Cash Flow from Financing Activities (CFF):

CFF for 2023: -113.95

CFF for 2022: -368.07

Cash used in financing activities decreased from -368.07 in 2022 to -113.95 in 2023. This decrease could be due to reduced repayment of borrowings and other outflows of cash related to financing activities.

Net Increase/(Decrease) in Cash & Cash Equivalents:

For 2023: 158.03 (Increase)

For 2022: 576.29 (Increase)

The net increase in cash and cash equivalents decreased from 576.29 in 2022 to 158.03 in 2023. This indicates that the company had a lower surplus of cash generated from its operating, investing, and financing activities in 2023 compared to 2022.

Financial Ratios of Hicks Thermometers India Limited

Here is the summary of financial and operational metrics for Hicks Thermometers India Limited for year 2023 & 2022:

Current Ratio: This ratio measures a company's ability to pay its short-term obligations with its short-term assets. A higher ratio indicates better liquidity. In this case, the current ratio has significantly increased from 5.19 in 2022 to 9.78 in 2023, suggesting a considerable improvement in the company's liquidity position.

Debt-Equity Ratio: This ratio indicates the proportion of debt and equity used to finance the company's assets. A lower ratio is generally favorable as it implies lower financial risk. The ratio has remained stable at 0.14 in both 2022 and 2023, indicating a consistent capital structure.

Debt Service Coverage Ratio: This ratio measures a company's ability to cover its debt obligations with its operating income. A ratio of 0 suggests that the company's operating income is insufficient to cover its debt obligations. It's important to investigate why this ratio is 0 in 2023, as it could indicate potential financial strain.

Return on Equity (ROE) Ratio: ROE measures a company's profitability relative to shareholders' equity. A higher ratio indicates better profitability. The ROE has decreased from 0.28 in 2022 to 0.07 in 2023, suggesting a decline in profitability relative to equity.

Inventory Turnover Ratio: This ratio measures how efficiently a company manages its inventory. A higher ratio indicates better inventory management. The decrease in the inventory turnover ratio from 7.11 in 2022 to 4.28 in 2023 suggests a slowdown in inventory turnover, which could indicate issues with sales or production.

Trade Receivables Turnover Ratio: This ratio measures how efficiently a company collects cash from its credit sales. A higher ratio indicates better receivables management. The decrease in the ratio from 14.07 in 2022 to 6.47 in 2023 suggests a significant slowdown in the collection of receivables, which could impact cash flow.

Trade Payables Turnover Ratio: This ratio measures how efficiently a company pays its suppliers. A higher ratio indicates better payable management. The decrease in the ratio from 6.73 in 2022 to 4.86 in 2023 suggests a slowdown in the payment of trade payables, which could affect supplier relationships.

Net Capital Turnover Ratio: This ratio measures how efficiently a company generates revenue relative to its capital employed. A higher ratio indicates better utilization of capital. The decrease in the ratio from 3.09 in 2022 to 1.47 in 2023 suggests a decline in revenue generation efficiency.

Net Profit Ratio: This ratio measures the percentage of net profit relative to revenue. A higher ratio indicates better profitability. The decrease in the net profit ratio from 0.08 in 2022 to 0.05 in 2023 suggests a decline in profitability.

Return on Capital Employed (ROCE): ROCE measures the efficiency and profitability of a company's capital investments. A higher ratio indicates better utilization of capital. The decrease in ROCE from 0.30 in 2022 to 0.09 in 2023 indicates a decline in the efficiency of capital utilization.

Industry Overview

Hicks Thermometers India Limited comes under the Healthcare sector. The healthcare industry comprises diverse sectors dedicated to maintaining and improving human health. Healthcare services encompass hospitals, clinics, and diagnostic centers, providing a spectrum of medical care. Pharmaceutical companies develop and market drugs, alongside biotechnology firms pioneering innovative therapies. Medical devices and equipment manufacturers produce tools vital for diagnosis and treatment. Healthtech companies innovate digital solutions, including telemedicine and health information systems. Health insurance and managed care organizations offer financial protection and healthcare management. Facilities management ensures safe and efficient healthcare environments. Education and training institutions prepare healthcare professionals, while regulatory bodies uphold safety and quality standards. Overall, the healthcare industry is dynamic, evolving to meet emerging health needs, technological advancements, and regulatory demands.

FAQ Related to Hicks Thermometers India Limited

Q.1) Is Hicks Thermometers India Limited is a private or public company?

Hicks Thermometers India Limited is a Public incorporated on 02 June 1961.

Q.2) Do Hicks Thermometers India Limited listed or not?

Hicks Thermometers is an unlisted company.

Q.3) In which field the work of Hicks Thermometers India Limited is?

Hicks Thermometers India Limited operates in the medical devices and equipment sector. They specialize in manufacturing and distributing thermometers and related medical devices used for measuring body temperature, which are crucial tools in healthcare settings for diagnosis, monitoring, and patient care.

Q.4) How is Hicks Thermometers India Limited is in liquid category?

Hicks Thermometers India Limited appears to be in a very strong liquidity position, particularly indicated by its high current ratio in both 2022 and 2023. A current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting it can easily cover its short-term obligations. In this case, the current ratio has significantly increased from 5.19 in 2022 to 9.78 in 2023, indicating a considerable improvement in liquidity. Additionally, the Debt-Equity Ratio remains stable at a low level of 0.14 in both years, indicating a conservative approach to financing and minimal reliance on debt for operations. Overall, based on these ratios, Hicks Thermometers India Limited seems to be in a very liquid category.