Revenue and Growth
Revenue is the lifeblood of any business, and analyzing its growth is paramount. Key metrics include Total Revenue and Total Revenue Growth (%). These
figures are essential for understanding how a company is expanding its market share and overall performance. Examining the growth percentages over different fiscal years (FY 2021 to FY 2025) provides a trajectory of the company's progress. A sustained increase in total revenue growth indicates a successful business strategy. Conversely, a decline could signal challenges in the market. Total Income Growth (%) should also be considered, giving a holistic view of the company's financial inflow, and is particularly vital when comparing it with the expense figures. These metrics collectively illustrate the firm's capacity to generate financial value.
Profitability Analysis
Profitability metrics offer insights into how efficiently a company converts revenue into profit. Crucial indicators include the EBIT Margin (%), Net Profit Margin (%), Operating Profit Margin (%), and EBITDA Margin (%). These margins reveal the percentage of revenue remaining after specific expenses are deducted. EBIT (Earnings Before Interest and Taxes) and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margins show operational efficiency. Net Profit Margin highlights the true profitability after all expenses. Analyzing these margins over multiple years exposes trends in profitability. Comparing these figures helps assess the company's ability to manage costs and sustain its profitability amidst market dynamics. Furthermore, the PAT Growth (%) is an indicator for the percentage change in profit after tax over different periods.
Expense and Efficiency
Evaluating expense management and operational efficiency is vital for financial analysis. Total Expenses Growth (%) provides an understanding of how costs are evolving over time. Employee & Interest Expense, are crucial in assessing cost control. Understanding if expenses are rising at a sustainable rate compared to revenue growth is essential. Moreover, ratios like Asset Turnover Ratio (x) evaluate how efficiently a company uses its assets to generate revenue. This efficiency can point to the company’s operating strength. A higher asset turnover suggests better use of assets. Another critical factor is the Return on Assets (%), this shows how well the company's assets generate profit. Keeping tabs on these aspects offers a clear picture of the company's financial strategy.
Financial Leverage and Debt
Assessing a company's debt and leverage is critical. Total Debt to Equity (x) and Interest Coverage Ratio (x) offer insights into a company’s financial risk profile. The Debt to Equity ratio shows the proportion of debt financing against equity financing, revealing the financial risk. A higher ratio indicates more risk. The Interest Coverage Ratio reflects the ability of a company to pay its interest expenses. A higher ratio suggests a company's stronger ability to meet its debt obligations. Additionally, Total Liabilities Growth (%) shows the changes in a company's total liabilities. Understanding these metrics is vital for evaluating financial stability and risk.
Asset and Equity Metrics
Total Assets and Total Equity are essential figures for evaluating a company's financial strength. Total Assets Growth (%) shows how the company is expanding its asset base, reflecting its investments and growth. Total Equity Growth (%) indicates changes in shareholders' equity. Examining these growth rates over several fiscal years can expose expansion trends and assess the company's financial capacity. Price to Book (x) is also essential, assessing the market valuation relative to the book value of equity. Return on Equity (%), which is a crucial metric, shows how effectively a company generates profits using the shareholders' investment. These metrics together offer a balanced view of the company's use of its assets and the return generated for shareholders.
Cash Flow Analysis
Analyzing cash flow is crucial for understanding a company’s liquidity and financial health. Net Cash Flow, Net Cash flow from Operating Activities, and Net Cash used in Investing Activities are vital components. These metrics show how cash moves in and out of the business, categorized by operations, investments, and financing. Also, Net Cash flow from Financing Activities provides information about how the company finances its operations. The Closing Cash & Cash Equivalent and its growth (%) give insights into the company’s ability to manage short-term obligations and its overall financial flexibility. Furthermore, Total Debt/ CFO (x) is a key metric, showing the time it would take to pay the debt with the cash flow.
