Dynacons Systems & Solutions Ltd - A growing IT company

It is to check if the company is getting cash soon or if the cash is just getting stuck in receivables. Companies which get cash faster can reinvest back in the business faster, these companies are more attractive relatively.

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Gr8 and thanks so much for your kind reply.
Is there any ideal value for this ratio or just the higher the better. I mean how we compare between multiple companies and industries, keeping this as a parameter for high value companies analysis.

2018 2019 2020 2021 2022 2023
12 -6 21 -4 29 39 91
24 28 30 29 31 56 198
Ratio 0.45959596

Is this a good company?

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I look at this to see if there is any fraudulent accounting. In the past, companies have declared profits, however the cash never arrives. Ideal ratio for me is CFO to EBITDA to be around 80%, but as you indicated it depends on the industry. Some companies collect the cash up front and provide services later, those are the best businesses

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Thanks for your feedback and guidance :pray:

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Typically for good B2C companies, the ratio could be 80 % and for B2b companies 70 %.

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but looks like even money from 2020 has not been received. cash from operations is abysmally low

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It depends on the type of business. If a company is in a B2C business that is it sells its products directly to customers CFO/PAT should be north of 0.7

If it is in a B2B business(selling its goods to another business or government) 0.5 to 0.6 is a decent number.

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This seems to be genuine issue. I checked Sept 2022 results also to see if same high EPS is reported, and it is.
But the screener shows lower number there, not sure how they got that, most probably they calculate it and don’t rely on posted EPS number.
Will avoid this company because I feel this is a serious blunder.