Synergy Green Industries Ltd

Synergy Green Industries Ltd has a liquidity position that is characterized by a current ratio of 0.92, indicating that its current liabilities exceed its current assets. The company's liquidity_fpt metric shows a net cash position that is negative after subtracting total debt, which is a key flag in the risk assessment. This suggests that the company may face challenges in meeting its short-term obligations without additional financing or operational improvements.

In terms of profitability, the company's return on equity (ROE) is 6.97%, which is relatively low compared to the industry's preferred metrics. The return on assets (ROA) is 1.64%, further indicating that the company is not efficiently utilizing its assets to generate profits. The debt-to-equity ratio of 1.71 suggests a high level of leverage, which can amplify both gains and losses and may increase financial risk.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no significant geographic diversification reported. This concentration could expose the company to higher risks if market conditions in its primary segment or region deteriorate.

Looking at the growth trajectory, the company's capital expenditure of -192.45 million INR indicates a reduction in investment in long-term assets, which may signal a conservative approach to expansion or a focus on cost management. The operating cash flow of 376.87 million INR provides some cushion for ongoing operations, but the company's net income of 32.54 million INR is relatively modest compared to its revenue of 823.10 million INR.

The risk assessment highlights a medium liquidity risk and a low dilution risk. The company's debt structure, with long-term debt of 799.33 million INR, is a significant portion of its total liabilities, which could affect its financial flexibility. The risk of dilution is considered low, as the number of shares outstanding has not changed between basic and diluted shares.

Recent events, as reflected in the financial data, show a focus on maintaining operational cash flow while managing capital expenditures. The company's financial strategy appears to be centered on preserving liquidity and managing debt, which is evident from the negative net cash position and the high debt-to-equity ratio.

Revenue grew at a 16.1% CAGR over four years, demonstrating consistent top-line expansion for the company.

Net income surged with a 51.9% CAGR, significantly outpacing revenue growth and indicating strong operational leverage.

Cash conversion ratio of 11.58 ranks best-in-class, suggesting robust ability to generate cash from earnings.

Debt-to-equity ratio of 1.71 is in the bottom quartile, indicating excessive leverage compared to peers.

The company carries a high credit risk flag, raising concerns about its ability to meet financial obligations.

Long-term debt increased significantly to 1.56 billion INR in the latest period, exacerbating financial risk.