Lumax Industries Fundamental Relationships

LUMAXIND -- India Stock  

INR 1,647  31.85  1.90%

The Drivers Module shows relationships between Lumax Industries's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of Lumax Industries Limited over time as well as its relative position and ranking within its peers. Please see also Stocks Correlation.

Lumax Industries Limited Z Score vs. Return On Equity Fundamental Analysis

Lumax Industries Limited is rated second overall in return on equity category among related companies. It is currently regarded as number one stock in z score category among related companies totaling about  0.51  of Z Score per Return On Equity. The ratio of Return On Equity to Z Score for Lumax Industries Limited is roughly  1.97 
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how effecently a company utilizes investments to generate income.
Lumax Industries 
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
=
21.27 %
For most industries Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in late 1960s at New York University..
Lumax Industries 
Z Score 
 = 
Sum Of  
 
5 Factors 
=
10.8
To calculate Z-Score one would need to know current working capital of the company, its total assets and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1 indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.

Lumax Industries Limited Z Score Comparison

Lumax Industries is currently under evaluation in z score category among related companies.
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