Cementos Pacasmayo S.A.A. (CPAC) Balance Sheet

The rise in retained earnings of roughly $263M over seven quarters indicates that earnings have largely been retained within the business, which supports equity quality. Because total assets stayed around $3.1B to $3.5B while equity expanded, the leverage profile has improved on a relative basis. Investors should monitor whether this trend holds once the Q4 dividend cycle resumes, since prior Q4 periods absorbed substantial cash.

Total debt has remained close to $1.4B throughout most of the period, so the improvement in D/E reflects expanding equity in the denominator. The sharp drop in reported debt to $18.2M in 2025Q1 appears inconsistent with the surrounding quarters and warrants further investigation before drawing conclusions about refinancing activity. Absent clearer disclosure, the debt load should be treated as substantial and dependent on sustained operating cash generation.

The current ratio has stayed above 1.0 throughout the series, which suggests short-term obligations are covered, though the margin is modest. The concentration of cash build-up in the third quarter and drawdown in the fourth implies that liquidity is tied to seasonal operating and distribution patterns. This pattern may leave the company more exposed to shocks in the weaker quarters.

The dominance of fixed assets reflects the capital intensity of clinker and cement production, which implies high fixed costs and sensitivity to capacity utilization. The near-absence of goodwill reduces impairment risk and means reported book equity is largely tangible. Asset quality therefore depends on the productivity and maintenance of plant rather than on intangible value.