Commercial Credit and Finance PLC

Commercial Credit and Finance PLC maintains a debt-to-equity ratio of 0.65, indicating a moderate reliance on debt financing relative to equity. The company's liquidity position is assessed as medium, with free cash flow of 4,995,635,970 LKR and operating cash flow of 9,699,454,090 LKR, but net cash is negative after subtracting total debt. Return on equity stands at 21.57%, and return on assets is 5.57%, both of which are key metrics for evaluating financial performance. The company's profitability is reflected in its net income of 6,147,086,230 LKR and operating income of 9,299,528,430 LKR. These figures suggest a strong performance in the current fiscal year, with a gross profit of 20,589,014,310 LKR. The return on equity and return on assets are in line with the industry's preferred metrics, indicating that the company is generating returns that are comparable to its peers. The company's revenue is distributed across several segments, including Finance Lease, Hire Purchase, Microfinance and SME Loans, Gold loan, Term Loan, Revolving Loans, and Investments. The microfinance and SME loans segment is particularly notable for its focus on supporting women entrepreneurs in Sri Lanka. The company's geographic exposure is primarily within Sri Lanka, with no significant international operations reported. The company's growth trajectory is positive, with a revenue of 17,944,333,760 LKR in the latest fiscal year. The outlook for the next fiscal year is optimistic, with expectations of continued growth in the microfinance and SME loan segments. The company's capital expenditure of -434,912,980 LKR indicates a reduction in investment in physical assets, which may be a strategic move to focus on more profitable areas. The risk assessment for the company indicates a medium liquidity risk and a low dilution risk. The company's debt structure is relatively stable, with long-term debt of 18,427,336,510 LKR and total liabilities of 81,767,796,060 LKR. The company's risk profile is further supported by its strong operating cash flow and free cash flow, which provide a buffer against potential financial stress. Recent events and filings indicate that the company has maintained a consistent financial performance, with the last actual EPS reported at 8.28 LKR and the last actual revenue at 12,465,523,000 LKR. The company's focus on microfinance and SME loans is expected to continue, with potential for expansion in these segments.