Margins
Merus Power's profitability margins have been significantly impacted by a substantial increase in costs, which has largely offset the benefits of its growing revenue. The company's ability to manage these costs effectively will be crucial in determining its ability to meet its financial targets, particularly in the context of its ambitious growth strategy. It appears that Merus Power is facing challenges in controlling its operating expenses, which is likely to remain a key area of focus for the company's management team in the coming months.
Solvency
The Merus Power Equity Ratio in Q2 2026 is 31.0%. Looking ahead to Q4 2027 (e), there is an expected increase in the Equity Ratio to 48.7%. The five-year average Equity Ratio is 41.8%.
Gearing
In Q2 2026, Merus Power's gearing is -10.2%, indicating a significant level of debt. Looking ahead to Q4 2027 (e), the gearing is expected to decrease to -1.2%, suggesting a reduction in debt levels over the next few years. The five-year average gearing stands at -5.5%.
Return on Equity and Assets
In Q2 2026, Merus Power's ROE is a negative 8.5%. Looking ahead to Q4 2027 (e), the company is expected to see a significant improvement in its ROE, reaching a positive 31.6%. Over the long term, Merus Power's ROE has averaged 2.3% over the past five years.
Merus Power's ROA in Q2 2026 is -2.6%, indicating a decline in profitability. Looking ahead, the company is expected to experience a significant improvement in ROA by Q4 2027 (e), with a projected value of 15.4%. Over the long term, Merus Power's average ROA has been relatively stable at 3.3%.
Asset Turnover Ratio
Asset Turnover Ratio is calculated as revenue / total assets.
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