CHIAMAKA ONUOHA LIMITED

Executive Summary

CHIAMAKA ONUOHA LIMITED demonstrates a solid financial foundation with strong liquidity, positive net assets, and prudent management of liabilities, reflecting a healthy financial condition for a micro-sized company. While the company maintains a stable position with healthy cash flow, modest debtor levels indicate potential for growth. Focused efforts on expanding revenue and strategic investment could enhance long-term financial wellness.

CHIAMAKA ONUOHA LIMITED - Analysis Report

Company Number: 13807930

Analysis Date: 2025-07-29 20:41 UTC

Financial Health Assessment for CHIAMAKA ONUOHA LIMITED

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1. Financial Health Score: B+

Explanation:
CHIAMAKA ONUOHA LIMITED shows stable and positive net current assets and net assets over the last four years, indicating a sound liquidity position and solid equity base. The company maintains a healthy cash balance relative to its liabilities, reflecting good cash flow management. However, the relatively small scale of operations, minimal liabilities, and flat debtor amounts suggest limited business growth or activity, which places the company in a moderately healthy but cautious position.

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Current Assets	12,510	Adequate short-term resources available
Cash	6,710	Healthy cash reserves supporting operations
Debtors	5,800	Moderate receivables; consistent but slightly reduced
Current Liabilities	204	Very low short-term obligations, minimal pressure
Net Current Assets	12,306	Strong working capital ("healthy blood pressure")
Net Assets	12,306	Positive equity, indicating the company is solvent
Shareholders’ Funds	12,306	All equity funded; no debt reflected
Average Number of Employees	1	Micro business scale, low fixed overhead

• Liquidity: The ratio of current assets to current liabilities is roughly 61:1 (12,510/204), indicating excellent short-term liquidity, far above the typical benchmark of 1.5-2.0. This shows the company can comfortably meet immediate obligations.
• Cash Flow: The "healthy cash flow" is evident by cash growing from £4,783 (2023) to £6,710 (2024), providing a strong buffer for day-to-day expenses.
• Receivables: Debtors have decreased from £7,400 (2023) to £5,800 (2024), which could indicate improved collections or reduced sales.
• Liabilities: Extremely low current liabilities indicate minimal financial stress or reliance on credit.
• Equity: Positive net assets and shareholders’ funds point to a stable capital structure without debt burdens.

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3. Diagnosis

The company exhibits many "signs of good health" financially: strong liquidity, positive net current assets, and consistent equity growth. The minimal level of current liabilities is a reassuring "heartbeat" showing little short-term financial distress. However, the static or slightly declining debtor figures and flat current asset levels over recent years may be "symptoms" of limited business expansion or flat revenue growth.

The company operates as a micro-entity with a single director and employee, which suits its size but also limits scalability. The financials suggest a conservative, low-risk approach with limited external financing or aggressive growth strategies.

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4. Recommendations

1. Enhance Revenue Streams: Investigate opportunities to increase sales or services to grow debtor balances and current assets, signaling business expansion and increased market activity.
2. Monitor Debtor Days: Although debtors are moderate, actively managing receivables to prevent delays and ensure tighter cash flow cycles is advisable.
3. Consider Investment: With strong cash reserves, the company could explore investments in marketing, equipment, or staff to fuel growth, if aligned with business strategy.
4. Maintain Low Liabilities: Continue the prudent management of liabilities to keep the company’s financial position robust and avoid over-leverage.
5. Regular Financial Reviews: Schedule frequent reviews of financial performance against budgets to detect any emerging "symptoms" of financial strain early.
6. Strategic Planning: Develop a growth plan or diversification strategy to avoid stagnation and build resilience for future market conditions.

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