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Reliance Naval and Engineering Key Financial Ratios

NSE:RNAVAL | SHIPPING

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Profitability Margins

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

FY 2019 - FY 2020

Understanding Profitability Margins

In FY 2020, Reliance Naval and Engineering posted a gross margin of 75.2%. 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 2019 - FY 2020

Reliance Naval and Engineering's revenue declined 44.9% to 992.11M in FY2020, though net losses narrowed 83.9% to -17.61B.

Understanding Company Performance

In FY 2020, Reliance Naval and Engineering's revenue declined by 44.9% 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 2019 - FY 2020

Reliance Naval and Engineering's ROE of 14.5% in FY2020 indicates moderate shareholder returns.

Understanding Return on Equity (ROE)

In FY 2020, Reliance Naval and Engineering reported an ROE of 14.5%. 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 2019 - FY 2020

Reliance Naval and Engineering reported both a net loss and negative free cash flow in FY2020, indicating severe financial stress.

Understanding Net Income vs Free Cash Flow

In FY 2020, Reliance Naval and Engineering's free cash flow exceeded 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 2019 - FY 2020

Reliance Naval and Engineering reported both a net loss and negative operating cash flow in FY2020, indicating severe operational stress.

Understanding Net Income vs Operating Cash Flow

In FY 2020, Reliance Naval and Engineering's operating cash flow exceeded 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 2019 - FY 2020

Reliance Naval and Engineering's current ratio of 0.15x in FY2020 indicates liquidity risk — current liabilities significantly exceed coverage capacity.

Understanding Current Ratio

In FY 2020, Reliance Naval and Engineering reported a current ratio of 0.15. 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 2019 - FY 2020

Reliance Naval and Engineering's interest coverage ratio of -0.2x in FY2020 indicates difficulty covering interest payments — high financial stress.

Understanding Interest Coverage Ratio

In FY 2020, Reliance Naval and Engineering reported an interest coverage ratio of -0.2x. 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 2019 - FY 2020

Reliance Naval and Engineering has negative equity in FY2020, indicating accumulated losses exceed equity — a significant financial risk.

Understanding Debt-to-Equity Ratio

In FY 2020, Reliance Naval and Engineering reported a debt-to-equity ratio of -0.61. 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 2019 - FY 2020

Reliance Naval and Engineering's debt decreased 37.4% YoY in FY2020 — positive deleveraging improves financial flexibility.

Understanding Total Debt

In FY 2020, Reliance Naval and Engineering's total debt decreased by 37.4% year-over-year. 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

Reliance Naval and Engineering's diluted shares remained virtually unchanged in FY2020.

Over 2 years (FY2019–FY2020), diluted shares remained essentially unchanged at 737.59M.

Understanding Shares Outstanding

In FY 2020, Reliance Naval and Engineering's diluted shares remained flat 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 2020