CASH FLOW STATEMENT ANALYSIS

Cash flow from Operating Activities

2021 2020 2019 2018 2017
CFO 2,606.24 2,484.04 571.88 1,415.83 1,552.81

The company has had a positive and fluctuating CFO from 2017 to 2021, CFO has decreased
in 2018 and 2019 and then continuously increased till 2021 which indicates that the core
business activities of the company are thriving. It provides as additional measure/indicator
of profitability potential of a company, in addition to the traditional ones like net income
or EBITDA.

Cash flow from Investing Activities

2021 2020 2019 2018 2017
CFI -641.49 -738.03 -254.33 -3,469.06 -82.92

Negative CFI indicate either increase in investment in PPE or not efficient at using the
company’s asset to generate revenue. But in ACC fixed asset are decreasing so it indicates
that company is not using its asset fully to generate further profit.

Cash flow from Financing Activities

2021 2020 2019 2018 2017
CFF -3,760.44 -386.79 -478.37 -683.26 -896.89

The Consistently negative value indicates the company is repaying its existing loans and is
also paying high dividend to the shareholders. which investors might be glad to see.

PROFITABILITY ANALYSIS
ROE
2021 2020 2019 2018 2017
ROE 0.088113 0.068837 0.070768 0.062562 0.048161
The Return on Equity of the firm at first is seen increasing which indicates that a company is
increasing its profit generation without needing as much capital. ROE is seen decreasing in 2020 and
but then increased in 2021. This suggests the company is becoming less efficient at creating profits
and increasing shareholder value.

LIQUIDITY ANALYSIS

WORKING CAPITAL
2021 2020 2019 2018 2017
Working Capital -112.72 2,400.68 2,024.87 1,383.20 781.94

The working capital is constantly increasing which indicates that the business has increased
current assets (that it has increased its receivables or other current assets) and has
decreased current liabilities (paid off some short-term creditors) but in 2021 working capital
got negative which indicates that its current liability is more than current asset. This
situation is cause for concern for lenders and creditors, since the firm may not have
sufficient liquid assets to pay for its short-term obligations.

CURRENT RATIO
2021 2020 2019 2018 2017
Current Ratio 0.975191 1.539792 1.544989 1.33516 1.227859

The current ratio of the firm is seen decreasing in 2020 and 2021 which might have made it
less capable of paying or meeting its short-term obligation. Also in 2021, current ratio is
below 1.5 which indicates the company might not be able to meet short obligations in the
near future.

SOLVENCY ANALYSIS

DEBT TO EQUITY RATIO

2021 2020 2019 2018 2017
Debt/Equity 0.002146 0.001589 0.001888 0.001208 0.000813

The Debt/Equity Ratio is seen to be very less and near to 0 consistently which means that
the business has not relied much on borrowing to finance operations. This means that the
company is in an incredible financial position.
INTEREST COVERAGE RATIO

2021 2020 2019 2018 2017

PBIT/Interest 29.0714 23.32399 19.87149 15.10514 17.23424

The Interest coverage ratio of the company is seen constantly increasing which means the
company can be seen in a very good financial health and in a good position to pay its debts.
The company is more capable of meeting interest obligations. It also indicates that a
company is overlooking opportunities to magnify their earnings through leverage.

EVA ANALYSIS
2021 2020 2019 2018 2017
EVA 4.55 -189.66 -1,617.45 -1,307.41 -1,603.40

The EVA is seen negative for all the years except for 2021 This suggests that the company
cannot go for any additional investment since it will lower the overall return of the
company. The operating efficiency need not be increase by increasing the return on existing
assets.

FCFF Analysis
2021
FCFF -6784.244

A negative value indicates that the firm has not generated enough revenue to cover its costs
and investment activities.

SUMMARY
Though company is not much relied on borrowing to finance operations which means that the
company is in an incredible financial position, company action is still not be in the long-term
best interest of the company. EVA and FCFF seems negative which indicates that company
cannot go for any additional investment since it will lower the overall return of the company
and also that the firm has not generated enough revenue to cover its costs and investment
activities. Company also has negative working capital in past few years which indicate that
its current liability is more than current asset This situation is cause for concern for lenders
and creditors, since the firm may not have sufficient liquid assets to pay for its short-term
obligations.
Though the company is thriving but the investors still have to be cautious while investing in
the company.