BUUU maintains a conservative capital structure with a negligible debt-to-equity ratio of 0.54%, though this is offset by a precarious cash position of only $448,888.
| Metric | Jun'24 | Jun'23 |
|---|
| Total Current Assets | 2.31M | 1.49M |
| Cash & Short-Term Investments | 448.89K | 515.93K |
| Cash Only | 448.89K | 515.93K |
| Short-Term Investments | 0 | 0 |
| Accounts Receivable | 1.84M | 940.73K |
| Days Sales Outstanding | 115.57 | 97.02 |
| Inventory | 0 | 0 |
| Days Inventory Outstanding | - | - |
| Other Current Assets | 0 | 0 |
| Total Non-Current Assets | 276.59K | 353.25K |
| Property, Plant & Equipment | 219.89K | 299.13K |
| Fixed Asset Turnover | 26.43x | 11.83x |
| Goodwill | 0 | 0 |
| Intangible Assets | 0 | 0 |
| Long-Term Investments | 0 | 0 |
| Other Non-Current Assets | 55.88K | 53.98K |
| Total Assets | 2.59M | 1.85M |
| Asset Turnover | 2.25x | 1.92x |
| Asset Growth % | 40.09% | - |
| Total Current Liabilities | 1.16M | 1.19M |
| Accounts Payable | 340.97K | 395.99K |
| Days Payables Outstanding | 28.86 | 51.06 |
| Short-Term Debt | 534.2K | 614.72K |
| Deferred Revenue (Current) | 21.91K | 23.05K |
| Other Current Liabilities | 0 | 0 |
| Current Ratio | 2.00x | 1.26x |
| Quick Ratio | 2.00x | 1.26x |
| Cash Conversion Cycle | - | - |
| Total Non-Current Liabilities | 88.25K | 174.63K |
| Long-Term Debt | 0 | 0 |
| Capital Lease Obligations | 88.25K | 174.63K |
| Deferred Tax Liabilities | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 |
| Total Liabilities | 1.25M | 1.36M |
| Total Debt | 722.5K | 873.5K |
| Net Debt | 273.61K | 357.57K |
| Debt / Equity | 0.54x | 1.80x |
| Debt / EBITDA | 0.67x | 2.10x |
| Net Debt / EBITDA | 0.25x | 0.86x |
| Interest Coverage | 41.78x | 14.33x |
| Total Equity | 1.34M | 485.37K |
| Equity Growth % | 176.5% | - |
| Book Value per Share | 0.08 | 0.03 |
| Total Shareholders' Equity | 1.27M | 431.56K |
| Common Stock | 19.82K | 19.82K |
| Retained Earnings | 1.27M | 431.99K |
| Treasury Stock | 0 | 0 |
| Accumulated OCI | 2.68K | -455 |
| Minority Interest | 73.2K | 53.81K |
Tight working capital liquidity
As reported in financial snapshots, BUUU maintains a cash position of only $448,888 against $5.8 million in annual revenue, which indicates a precarious liquidity buffer that may leave the firm susceptible to payment delays or unexpected cost spikes within its project-based Hong Kong event management operations.
The low cash-to-revenue ratio suggests that the company operates with minimal margin for error regarding its working capital cycle. Investors should monitor whether this tight liquidity profile forces the firm to rely on external financing or parent-company support to fund ongoing fabrication projects.
Based on the company's reported figures, BUUU maintains a negligible debt-to-equity ratio of 0.54%, which suggests a conservative capital structure that effectively shields the firm from interest rate sensitivity despite the inherent volatility of its project-based revenue model in the Hong Kong MICE sector.
While the lack of significant debt reduces financial distress risk, it may also reflect a strategic choice to avoid fixed obligations in a business model prone to cyclical revenue swings. This lean leverage profile appears appropriate given the absence of long-term, recurring revenue contracts to service debt.
According to industry-standard accounting practices for project-based firms, the reliance on percentage-of-completion revenue recognition may mask underlying cash flow weaknesses, as reported revenue figures might not align with the actual collection of cash from clients in the highly concentrated Hong Kong market.
This accounting approach could potentially inflate the appearance of financial health by recognizing revenue before the corresponding cash is realized. Analysts should investigate the relationship between reported contract assets and actual cash inflows to determine if the firm's growth is truly self-sustaining.
As indicated by recent financial disclosures, BUUU's rapid 64.23% revenue growth has not been accompanied by a proportional strengthening of its cash reserves, suggesting that the firm's balance sheet trajectory remains vulnerable to the working capital demands of its expanding stage production and event management pipeline.
The disconnect between top-line expansion and liquidity accumulation warrants further investigation into the firm's cash conversion cycle. If the company continues to scale without improving its cash position, it may face increasing pressure to secure additional funding to support its fabrication-heavy business model.
Quick answers to the most common questions about buying BUUU stock.
As of 2023, BUUU Group Limited Class A Ordinary Share (BUUU) had total assets of $2.6M including $2.3M in current assets.
BUUU Group Limited Class A Ordinary Share (BUUU) carries total debt of $0.7M, offset by $0.4M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
BUUU Group Limited Class A Ordinary Share (BUUU) has total shareholders' equity (book value) of $1.3M ($0.08 book value per share). Book value represents the net worth of the company belonging to common stock holders.
BUUU Group Limited Class A Ordinary Share (BUUU) reported a current ratio of 2.00x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.