Alliance Finance Company PLC

Alliance Finance Company PLC maintains a highly leveraged capital structure, with total liabilities of LKR 85.7 billion against total equity of LKR 11.4 billion. The debt-to-equity ratio stands at 3.87, indicating significant reliance on debt financing. Long-term debt totals LKR 43.9 billion, while cash and equivalents amount to LKR 1.6 billion, resulting in a negative net cash position. Liquidity risk is assessed as medium, reflecting the tight balance between short-term obligations and available liquid assets.

Profitability metrics show a return on equity of 19.54% and a return on assets of 2.29%. The company generated net income of LKR 2.2 billion on revenue of LKR 17.9 billion, yielding a net margin of approximately 12.4%. Operating income was LKR 4.7 billion, demonstrating effective cost control relative to gross profit of LKR 10.0 billion. Without cohort median data, these returns are evaluated in isolation, though the high ROE suggests efficient use of equity capital despite the high leverage.

Segment and geographic revenue breakdowns are not provided in the available data. The company’s revenue concentration risks cannot be quantified from the current input, limiting the assessment of diversification benefits or exposure to specific regional economic cycles.

Growth trajectory analysis is constrained by the absence of historical period data. The latest normalized period shows revenue of LKR 17.9 billion, but year-over-year or multi-year trends cannot be established without prior period comparisons. Consequently, the sustainability of current revenue levels remains unverified by historical performance data.

Key risk factors include medium liquidity risk and low dilution risk. A critical flag is the negative net cash position after subtracting total debt, which heightens sensitivity to interest rate fluctuations and refinancing risks. The low dilution risk suggests that share count stability is maintained, with basic and diluted shares outstanding both at 33.7 million.

Recent filing, news, and transcript observations are not available in the input data. No specific corporate actions, regulatory updates, or management signals are reported to influence the current valuation or risk profile.