The balance sheet appears highly vulnerable, characterized by a minimal cash reserve of $748,099 relative to $7.3 million in TTM revenue.
| Metric | Jun'24 | Jun'23 | Jun'22 |
|---|
| Total Current Assets | 1.96M | 6.26M | 2.09M |
| Cash & Short-Term Investments | 748.1K | 3.19M | 363.54K |
| Cash Only | 748.1K | 3.19M | 363.54K |
| Short-Term Investments | 0 | 0 | 0 |
| Accounts Receivable | 424.05K | 1.32M | 937.56K |
| Days Sales Outstanding | 21.14 | 76.51 | 176.36 |
| Inventory | 600.88K | 626.2K | 515.78K |
| Days Inventory Outstanding | 90.54 | 85.8 | 222.46 |
| Other Current Assets | 13.76K | 33.85K | 1.58K |
| Total Non-Current Assets | 7.01M | 5.82M | 344.23K |
| Property, Plant & Equipment | 4.15M | 4.69M | 150.84K |
| Fixed Asset Turnover | 1.77x | 1.34x | 12.86x |
| Goodwill | 0 | 0 | 0 |
| Intangible Assets | 2.36M | 2.51K | 0 |
| Long-Term Investments | 0 | 0 | 0 |
| Other Non-Current Assets | 0 | 752.96K | 0 |
| Total Assets | 8.97M | 12.08M | 2.43M |
| Asset Turnover | 0.82x | 0.52x | 0.80x |
| Asset Growth % | -25.78% | 397.19% | - |
| Total Current Liabilities | 7.07M | 6.23M | 1.98M |
| Accounts Payable | 430.51K | 683.42K | 10.04K |
| Days Payables Outstanding | 64.87 | 93.64 | 4.33 |
| Short-Term Debt | 0 | 1.41M | 0 |
| Deferred Revenue (Current) | 3.78M | 3.39M | 41.05K |
| Other Current Liabilities | 60.11K | -1.02M | 113.84K |
| Current Ratio | 0.28x | 1.00x | 1.06x |
| Quick Ratio | 0.19x | 0.90x | 0.79x |
| Cash Conversion Cycle | 46.81 | 68.67 | 394.49 |
| Total Non-Current Liabilities | 6.47M | 5.27M | 0 |
| Long-Term Debt | 2.4M | 0 | 0 |
| Capital Lease Obligations | 335.24K | 500.26K | 0 |
| Deferred Tax Liabilities | 0 | 0 | 0 |
| Other Non-Current Liabilities | 2.36M | 0 | 0 |
| Total Liabilities | 13.55M | 11.5M | 1.98M |
| Total Debt | 2.93M | 2.08M | 0 |
| Net Debt | 2.18M | -1.11M | -363.54K |
| Debt / Equity | - | 3.54x | - |
| Debt / EBITDA | 2.65x | 1.42x | - |
| Net Debt / EBITDA | 1.97x | -0.75x | - |
| Interest Coverage | -0.35x | 63.20x | -1085.76x |
| Total Equity | -4.58M | 587.83K | 453.17K |
| Equity Growth % | -878.93% | 29.71% | - |
| Book Value per Share | -0.08 | - | - |
| Total Shareholders' Equity | -4.58M | 587.83K | 453.17K |
| Common Stock | 5.71K | 5K | 50K |
| Retained Earnings | -4.9M | -3.98M | -4.26M |
| Treasury Stock | 0 | 0 | 0 |
| Accumulated OCI | 313.61K | 318.15K | 463.05K |
| Minority Interest | 0 | 0 | 0 |
Liquidity and operational insolvency
As reported in financial statements, Big Tree Cloud maintains a cash position of only $748,099 against $7.3 million in TTM revenue, which suggests a highly constrained liquidity profile that leaves the company with minimal buffer to absorb unexpected operational shocks or sustain its current growth trajectory.
The extremely low cash balance relative to the scale of operations indicates that the company may face significant challenges in funding its ongoing working capital requirements. Investors should monitor this closely, as the lack of a substantial liquidity cushion may necessitate dilutive equity raises or high-cost debt financing in the near term.
Based on the company's reported figures, the balance sheet appears increasingly vulnerable as the firm attempts to scale its dual-track business model without the support of a robust cash reserve or a clear path to consistent, self-sustaining operational profitability.
The trajectory of the balance sheet suggests that the company is currently in a high-risk phase where the reliance on external capital is likely to increase. Without a meaningful improvement in cash generation, the firm's ability to maintain its current market position may be compromised by its limited financial flexibility.
According to recent SEC filings, the discrepancy between the company's negative operating margin and its positive net margin warrants further investigation, as it suggests that the balance sheet may be artificially supported by non-recurring items rather than sustainable, core business activities.
The reliance on non-operating income to bolster the bottom line obscures the true health of the balance sheet and the underlying earning power of the business. Analysts should be wary of these distortions, as they may mask the structural inefficiencies that are currently preventing the company from achieving a self-funding status.
Quick answers to the most common questions about buying DSYWW stock.
As of 2024, Big Tree Cloud Holdings Limited Warrants (DSYWW) had total assets of $9.0M including $2.0M in current assets.
Big Tree Cloud Holdings Limited Warrants (DSYWW) carries total debt of $2.9M, offset by $0.7M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Big Tree Cloud Holdings Limited Warrants (DSYWW) has total shareholders' equity (book value) of $-4.6M ($-0.08 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Big Tree Cloud Holdings Limited Warrants (DSYWW) reported a current ratio of 0.28x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.