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Aarey Drugs & Pharmaceuticals (NSE:AAREYDRUGS) Profitability Rank : 5 (As of Dec. 2023)


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What is Aarey Drugs & Pharmaceuticals Profitability Rank?

Aarey Drugs & Pharmaceuticals has the Profitability Rank of 5.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Aarey Drugs & Pharmaceuticals's Operating Margin % for the quarter that ended in Dec. 2023 was 2.92%. As of today, Aarey Drugs & Pharmaceuticals's Piotroski F-Score is 1.


Competitive Comparison of Aarey Drugs & Pharmaceuticals's Profitability Rank

For the Drug Manufacturers - Specialty & Generic subindustry, Aarey Drugs & Pharmaceuticals's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Aarey Drugs & Pharmaceuticals's Profitability Rank Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Aarey Drugs & Pharmaceuticals's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Aarey Drugs & Pharmaceuticals's Profitability Rank falls into.



Aarey Drugs & Pharmaceuticals Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Aarey Drugs & Pharmaceuticals has the Profitability Rank of 5.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Aarey Drugs & Pharmaceuticals's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=22.312 / 764.765
=2.92 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

2. Piotroski F-Score

Warning Sign:

Piotroski F-Score of 1 is low, which usually implies poor business operation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Aarey Drugs & Pharmaceuticals has an F-score of 1. It is a bad or low score, which usually implies poor business operation.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

Aarey Drugs & Pharmaceuticals Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -18.3%.

4. Consistency of the profitability

5. Predictability Rank


Aarey Drugs & Pharmaceuticals Profitability Rank Related Terms

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Aarey Drugs & Pharmaceuticals (NSE:AAREYDRUGS) Business Description

Traded in Other Exchanges
Address
340/348, Narshi Natha Street, 107, Sahakar Bhavan, Masjid, Mumbai, MH, IND, 400 009
Aarey Drugs & Pharmaceuticals Ltd is engaged in bulk drug manufacturing and offers products for industrial applications. The company manufactures active pharmaceutical ingredients, intermediates, and specialty chemicals. It is also involved in the trading of industrial solvents and chemicals. The products offered by the company include N-Methyl urea, Dimethyl urea, Mefenamic acid, Metformin, Doxaphylline, BMD among others. The company principally carries its business operations in India.

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