The firm's solvency is under pressure, characterized by a substantial negative equity position of $1.3 billion and total liabilities of $2.0 billion that dwarf its $712.5 million asset base.
| Total Current Assets | 600.85M | 1.18B | 780.25M | 600.85M | 752.56M |
| Cash & Short-Term Investments | 149.77M | 152.9M | 264.87M | 149.77M | 426.14M |
| Cash Only | 114.94M | 117.47M | 243.39M | 114.94M | 362.38M |
| Short-Term Investments | 34.82M | 35.42M | 21.47M | 34.82M | 63.76M |
| Accounts Receivable | 435.88M | 1B | 505.98M | 435.88M | 311.85M |
| Days Sales Outstanding | 205.57 | 105.6 | 55.94 | 59.39 | 65.59 |
| Inventory | 0 | 0 | 0 | 0 | 0 |
| Days Inventory Outstanding | - | - | - | - | - |
| Other Current Assets | 6.55M | 1.99M | 1.59M | 6.55M | 6.03M |
| Total Non-Current Assets | 111.65M | 107.11M | 113.72M | 111.65M | 116M |
| Property, Plant & Equipment | 16.89M | 7.02M | 11.92M | 16.89M | 19.14M |
| Fixed Asset Turnover | 45.81x | 494.68x | 277.06x | 158.58x | 90.67x |
| Goodwill | 84.61M | 84.61M | 84.61M | 84.61M | 84.61M |
| Intangible Assets | 10.15M | 5.95M | 8.05M | 10.15M | 12.25M |
| Long-Term Investments | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 0 | 9.53M | 9.15M | 0 | 0 |
| Total Assets | 712.5M | 1.29B | 893.98M | 712.5M | 868.56M |
| Asset Turnover | 1.09x | 2.70x | 3.69x | 3.76x | 2.00x |
| Asset Growth % | 0% | 44.07% | 25.47% | -17.97% | - |
| Total Current Liabilities | 344.03M | 878.27M | 501.53M | 344.03M | 347.62M |
| Accounts Payable | 227.16M | 725.82M | 316.87M | 227.16M | 180.3M |
| Days Payables Outstanding | 114.07 | 79.93 | 36.59 | 32.68 | 39.77 |
| Short-Term Debt | 0 | 30M | 20M | 0 | 10M |
| Deferred Revenue (Current) | 888K | 1.78M | 4.29M | 888K | 8.71M |
| Other Current Liabilities | 9.49M | 9.04M | 9.33M | 9.49M | 7.13M |
| Current Ratio | 1.75x | 1.34x | 1.56x | 1.75x | 2.16x |
| Quick Ratio | 1.75x | 1.34x | 1.56x | 1.75x | 2.16x |
| Cash Conversion Cycle | 91.5 | - | - | - | - |
| Total Non-Current Liabilities | 1.63B | 53.9M | 14.26M | 1.63B | 1.53B |
| Long-Term Debt | 0 | 0 | 0 | 0 | 10.51M |
| Capital Lease Obligations | 6.23M | 2.14M | 5.4M | 6.23M | 8.29M |
| Deferred Tax Liabilities | 2.54M | 1.49M | 2.01M | 2.54M | 3.06M |
| Other Non-Current Liabilities | 1.62B | 48.84M | 5.42M | 1.62B | 1.5B |
| Total Liabilities | 1.97B | 932.17M | 515.79M | 1.97B | 1.87B |
| Total Debt | 13.9M | 35.17M | 29.35M | 13.9M | 36.67M |
| Net Debt | -101.04M | -82.3M | -214.04M | -101.04M | -325.72M |
| Debt / Equity | -0.01x | 0.10x | 0.08x | - | - |
| Debt / EBITDA | -2.69x | - | - | - | - |
| Net Debt / EBITDA | 19.57x | - | - | - | - |
| Interest Coverage | -4.76x | -79.41x | -116.03x | -35.11x | -23.87x |
| Total Equity | -1.26B | 355.75M | 378.18M | -1.26B | -1.01B |
| Equity Growth % | 0% | -5.93% | 130% | -25.4% | - |
| Book Value per Share | - | 0.82 | 0.87 | - | - |
| Total Shareholders' Equity | -1.26B | 355.75M | 378.18M | -1.26B | -1.01B |
| Common Stock | 30K | 6K | 5K | 30K | 30K |
| Retained Earnings | -1.26B | -2.18B | -2.11B | -1.26B | -1B |
| Treasury Stock | -1.02M | -1.02M | -1.02M | -1.02M | -1.03M |
| Accumulated OCI | -66K | 6.09M | 1.15M | -66K | -7.8M |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
Negative equity and insolvency
According to the 2022Q4 balance sheet, CCGWW reports a significant negative equity position of $1.3 billion, which, when contrasted with total assets of $712.5 million, suggests a precarious financial foundation that warrants extreme caution regarding the company's long-term solvency and capital structure sustainability.
The presence of negative equity indicates that accumulated losses have completely eroded the company's book value, leaving the firm in a technically insolvent state based on accounting metrics. This trajectory suggests that the business model has failed to generate sufficient retained earnings to offset the costs of its aggressive market expansion and SPAC-related transaction expenses.
As reported in the 2022Q4 financial statements, the company maintains a cash balance of $114.9 million against a current ratio of 1.75, which provides a limited buffer for a firm operating with negative margins and high variable costs in a competitive insurance brokerage environment.
While a current ratio of 1.75 appears superficially adequate, the underlying cash burn rate and the lack of consistent profitability suggest that this liquidity is rapidly depleting. Investors should monitor whether this cash position is sufficient to sustain operations without requiring further dilutive financing, especially given the company's reliance on high-volume, low-margin transaction services.
Based on the 2022Q4 data, the company's asset base includes $84.6 million in goodwill, which represents a substantial portion of the $712.5 million in total assets, indicating that the firm's valuation is heavily dependent on intangible factors rather than tangible property, plant, or equipment.
The concentration of goodwill suggests that the company's asset quality is sensitive to future impairment risks, particularly if the anticipated synergies from its NEV partnerships fail to materialize. With only $16.9 million in net PPE, the firm remains an asset-light operator that lacks a physical collateral base to support its debt obligations.
As indicated by the 2022Q4 filings, the company's $2.0 billion in total liabilities significantly outweighs its $712.5 million in total assets, creating a structural imbalance that makes the headline revenue figures potentially misleading regarding the firm's actual economic health and long-term viability.
The massive liability load relative to assets suggests that the company is operating under significant financial strain, likely exacerbated by the accounting treatment of its SPAC merger and ongoing operational losses. This discrepancy between high transaction volume and a deeply negative equity position implies that the business may be struggling to convert its market presence into tangible shareholder value.
Quick answers to the most common questions about buying CCGWW stock.
As of 2024, Cheche Group Inc. Warrant (CCGWW) had total assets of $1.29B including $1.18B in current assets.
Cheche Group Inc. Warrant (CCGWW) carries total debt of $35.2M, offset by $152.9M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Cheche Group Inc. Warrant (CCGWW) has total shareholders' equity (book value) of $355.8M ($0.82 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Cheche Group Inc. Warrant (CCGWW) reported a current ratio of 1.34x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.