Fazal Cloth Mills Ltd

Fazal Cloth Mills has a debt-to-equity ratio of 1.0, indicating a balanced capital structure where liabilities and equity are equal. The company's liquidity is assessed as medium, with a current ratio of 1.35, suggesting it can cover short-term obligations but with limited buffer. Free cash flow is negative at -33.83 million PKR, and operating cash flow is also negative at -2.26 billion PKR, indicating cash flow challenges [doc:HA-latest]. Profitability metrics show a return on equity (ROE) of 0.25% and a return on assets (ROA) of 0.10%, both significantly below typical thresholds for healthy returns in the textiles industry. The company's operating income of 6.88 billion PKR and gross profit of 7.70 billion PKR are modest relative to its revenue of 90.00 billion PKR, indicating low margin efficiency [doc:HA-latest]. The company operates through two segments: Spinning and Weaving. While the input data does not provide specific revenue by segment, the Spinning segment produces a range of yarns, and the Weaving segment produces various fabric types. The geographic exposure is concentrated in Pakistan, with manufacturing facilities in Punjab. There is no indication of international revenue diversification [doc:HA-latest]. Growth trajectory is not clearly defined in the input data, but the negative free cash flow and operating cash flow suggest operational constraints. The company's capital expenditure of -2.44 billion PKR indicates ongoing investment in operations, though the negative sign may reflect the cost of maintaining or expanding facilities [doc:HA-latest]. Risk factors include medium liquidity risk due to the current ratio and negative net cash position after subtracting total debt. Dilution risk is assessed as low, with no near-term pressure indicated. The company's debt level is high, with long-term debt of 47.04 billion PKR, which could pose a challenge if interest rates rise or if the company faces cash flow disruptions [doc:HA-latest]. Recent events are not detailed in the input data, but the financial snapshot suggests the company is navigating a period of operational and financial stress. The negative cash flows and low profitability metrics indicate the need for strategic adjustments to improve financial health [doc:HA-latest].