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Credit Analysis and Research Key Financial Ratios

NSE:CARERATING | Rating Agencies

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Profitability Margins

2-year trend showing gross, operating, and net profit margins

FY 2020 - FY 2021

Credit Analysis and Research's net profit margin of 32.5% in FY2021 reflects excellent profitability, with operating margin at 42.6% and gross margin at 57.2%.

Understanding Profitability Margins

In FY 2021, Credit Analysis and Research posted a gross margin of 57.2%, an operating margin of 42.6%, a net margin of 32.5%. Gross Margin = (Revenue - COGS) / Revenue; Operating Margin = EBIT / Revenue; Net Margin = Net Income / Revenue. Typical healthy ranges: Gross 20-40%, Operating 10-20%, Net 5-10%+. Consistent or improving margins indicate strong competitive positioning.

Company Performance

2-year trend showing revenue, gross profit, and net profit

FY 2020 - FY 2021

Credit Analysis and Research's revenue grew 14.8% to 2.80B and net profit grew 10.4% to 909.66M YoY in FY2021, indicating healthy business momentum.

Understanding Company Performance

In FY 2021, Credit Analysis and Research's revenue grew by 14.8% year-over-year. Revenue is total income from operations. Gross Profit is revenue minus cost of goods. Net Profit is the bottom line after all expenses. Consistent growth across all three signals a healthy, expanding business.

Return on Equity (ROE)

2-year trend showing shareholder returns

FY 2020 - FY 2021

Credit Analysis and Research's ROE of 15.3% in FY2021 indicates good shareholder returns.

Understanding Return on Equity (ROE)

In FY 2021, Credit Analysis and Research reported an ROE of 15.3%. ROE = (Net Income / Shareholders' Equity) x 100. Measures how efficiently the company turns equity into profit. Above 15% is generally strong; above 25% is excellent. Very high ROE may signal high leverage — check alongside debt levels.

Net Income vs Free Cash Flow

2-year trend comparing profitability with cash generation

FY 2020 - FY 2021

Credit Analysis and Research's FCF/NI ratio of 0.90x in FY2021 indicates reasonable cash generation relative to profits.

Understanding Net Income vs Free Cash Flow

In FY 2021, Credit Analysis and Research's free cash flow trailed net income. Free Cash Flow = Operating Cash Flow - Capital Expenditure. When FCF exceeds net income, it suggests high-quality, cash-backed earnings. Persistent gaps may indicate aggressive accounting or heavy capex needs.

Net Income vs Operating Cash Flow

2-year trend comparing profitability with cash from operations

FY 2020 - FY 2021

Credit Analysis and Research's OCF/NI ratio of 0.95x in FY2021 indicates reasonable cash conversion from operations.

Understanding Net Income vs Operating Cash Flow

In FY 2021, Credit Analysis and Research's operating cash flow trailed net income. Operating Cash Flow is the actual cash from core operations. OCF exceeding net income signals strong cash collection. OCF trailing net income may indicate aggressive revenue recognition or working capital issues.

Leverage Ratios

Measure a company's financial leverage, liquidity, and ability to meet financial obligations.

Current Ratio Analysis

2-year trend showing short-term liquidity position

FY 2020 - FY 2021

Credit Analysis and Research's current ratio of 10.34x in FY2021 indicates excessively high liquidity that may signal inefficient asset management.

Understanding Current Ratio

In FY 2021, Credit Analysis and Research reported a current ratio of 10.34. Current Ratio = Current Assets / Current Liabilities. Measures short-term liquidity. A ratio of 1.5-3.0 is generally healthy; below 1.0 signals liquidity risk; above 3.0 may indicate underutilized assets.

Interest Coverage Ratio Analysis

2-year trend showing ability to service debt

FY 2020 - FY 2021

Credit Analysis and Research's interest coverage ratio of 193.1x in FY2021 indicates comfortable debt servicing capacity.

Understanding Interest Coverage Ratio

In FY 2021, Credit Analysis and Research reported an interest coverage ratio of 193.1x. Interest Coverage = EBIT / Interest Expense. Shows how many times operating profit covers interest payments. Above 5x is comfortable; below 1.5x signals potential difficulty servicing debt.

Debt-to-Equity Ratio Analysis

2-year trend showing financial leverage and capital structure

FY 2020 - FY 2021

Understanding Debt-to-Equity Ratio

Debt-to-Equity = Total Debt / Total Equity. Below 1.0 is conservative; 1.0-2.0 is moderate; above 2.0 indicates higher financial risk. Capital-intensive industries naturally carry higher ratios.

Total Debt Analysis

2-year trend showing total debt with year-over-year changes

FY 2020 - FY 2021

Understanding Total Debt

Total Debt includes short-term debt, long-term loans, debentures, and capital leases. YoY changes (shown as percentages) reveal whether the company is leveraging up or deleveraging.

Shares Outstanding

Year-over-year change in diluted shares outstanding

Credit Analysis and Research's diluted shares remained virtually unchanged in FY2021.

Over 2 years (FY2020–FY2021), diluted shares remained essentially unchanged at 29.46M.

Understanding Shares Outstanding

In FY 2021, Credit Analysis and Research's diluted shares decreased by 0.0% year-over-year. Diluted Shares accounts for stock options, warrants, and convertibles. Positive YoY change means dilution (red); negative means buybacks (green). Consistent dilution above 5% annually is a red flag.

Data from audited consolidated filings. For educational purposes only — not investment advice. Last update: FY 2021