LACTO FOODS A/S — Credit Rating and Financial Key Figures

LACTO FOODS A/S (CVR number: 21658871K) is a company from VEJLE. The company reported a net sales of 151.5 mDKK in 2015, demonstrating a decline of -56.9 % compared to the previous year. The operating profit percentage was at 1.7 % (EBIT: 2.6 mDKK), while net earnings were 916 kDKK. The profitability of the company measured by Return on Assets (ROA) was 2.3 %, which can be considered weak and Return on Equity (ROE) was 3 %, which can be considered weak. The equity ratio, a key indicator for solidity, stood at 17.7 %, a level that can be considered to be very low. This means the company is highly leveraged, with most assets financed through debt. This high level of financial risk could pose challenges in periods of financial distress or rising interest rates. LACTO FOODS A/S's liquidity measured by quick ratio was 0.2 which is at a very low level. Thus, the company is in an unstable financial position, with its liquid assets significantly undermatching its current liabilities. This severe liquidity deficiency may lead to financial distress and threaten the company's operational continuity.