S S Oil Mills Ltd

S S Oil Mills Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.49, indicating moderate leverage relative to its equity base of 2.17 billion PKR. The company holds total assets of 3.57 billion PKR against total liabilities of 1.40 billion PKR, resulting in a current ratio of 2.07, which suggests adequate short-term liquidity to cover immediate obligations. However, the risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, implying reliance on operating cash flows to service its 1.06 billion PKR in long-term debt.

Profitability metrics show a return on equity (ROE) of 8.65% and a return on assets (ROA) of 5.26%, reflecting moderate efficiency in generating profits from its asset base. The company reported a net income of 250.6 million PKR on revenues of 7.83 billion PKR, yielding a net margin of approximately 3.2%. Operating income stands at 494.4 million PKR, demonstrating the ability to generate operating cash flow of 426.6 million PKR and free cash flow of 312.0 million PKR, which supports its debt servicing requirements despite the negative net cash position.

Free cash flow surged 141.9% year-over-year to PKR 304 million, demonstrating strong operational cash generation capabilities.

Net income increased 41.7% year-over-year to PKR 311 million, indicating a robust recovery in profitability.

Cash conversion ratio of 1.75 outperforms the cohort median of 1.13, highlighting efficient earnings quality.

Debt-to-equity ratio of 0.49 is below the cohort median of 0.29, suggesting a conservative leverage profile.

The company faces medium liquidity and credit risks, which could constrain financial flexibility and increase borrowing costs.