The company's financial stability appears increasingly fragile as the debt-to-equity ratio rose to 0.14 in 2026Q2, up from 0.03 in 2024Q4, alongside a shrinking equity base of $10.7 million.
| Total Current Assets | 21.52M | 22.97M | 18.07M | 18.26M | 16.62M | 12.37M | 9.27M |
| Cash & Short-Term Investments | 5.95M | 10.63M | 6.47M | 5.76M | 5.45M | 4.95M | 2.19M |
| Cash Only | 4M | 7.6M | 5.36M | 4.95M | 2.67M | 3.88M | 2.19M |
| Short-Term Investments | 1.95M | 3.03M | 1.11M | 811.5K | 2.78M | 1.07M | 0 |
| Accounts Receivable | 9.86M | 8.71M | 6.98M | 7M | 5.51M | 3.24M | 2.69M |
| Days Sales Outstanding | 108.68 | 236.03 | 150.16 | 138.71 | 84.16 | 65.45 | 81.27 |
| Inventory | 5.26M | 1.8M | 3.99M | 4.94M | 5.25M | 3.9M | 1.46M |
| Days Inventory Outstanding | 56.34 | 63.35 | 117.52 | 130.37 | 116.89 | 108.84 | 57.84 |
| Other Current Assets | 131.25K | 38.82K | 199.06K | 3.61M | 3.19M | 282.39K | 2.92M |
| Total Non-Current Assets | 1.45M | 1.84M | 1.61M | 2.44M | 2.75M | 2.59M | 1.01M |
| Property, Plant & Equipment | 757.06K | 819.6K | 946.83K | 1.42M | 1.62M | 1.31M | 625.67K |
| Fixed Asset Turnover | 36.09x | 16.44x | 17.92x | 12.97x | 14.73x | 13.83x | 19.34x |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Long-Term Investments | 1.56M | 0 | 293.97K | 470.18K | 818.98K | 1.11M | 0 |
| Other Non-Current Assets | 211.37K | 1.01M | 324.72K | 494.74K | 181.07K | 46.72K | 211.03K |
| Total Assets | 22.97M | 24.81M | 19.69M | 20.69M | 19.37M | 14.95M | 10.27M |
| Asset Turnover | 1.31x | 0.54x | 0.86x | 0.89x | 1.23x | 1.21x | 1.18x |
| Asset Growth % | 37.82% | 26.02% | -4.87% | 6.81% | 29.57% | 45.56% | - |
| Total Current Liabilities | 6.07M | 7.87M | 2.39M | 3.77M | 3M | 2.6M | 2.59M |
| Accounts Payable | 1.41M | 1.14M | 923.58K | 1.73M | 1.16M | 1.12M | 1.05M |
| Days Payables Outstanding | 18.36 | 40.24 | 27.2 | 45.64 | 25.8 | 31.36 | 41.38 |
| Short-Term Debt | 2.2M | 2.53M | 0 | 145.6K | 0 | 0 | 0 |
| Deferred Revenue (Current) | 3.53M | 1.06M | 598.66K | 584.64K | 452.86K | 524.4K | 577.32K |
| Other Current Liabilities | 944K | 2.08M | 255.18K | 671.16K | 568.91K | 247.1K | 1.21M |
| Current Ratio | 3.54x | 2.92x | 7.58x | 4.85x | 5.54x | 4.76x | 3.58x |
| Quick Ratio | 2.68x | 2.69x | 5.90x | 3.54x | 3.79x | 3.26x | 3.02x |
| Cash Conversion Cycle | 146.66 | 259.15 | 240.48 | 223.44 | 175.25 | 142.93 | 97.74 |
| Total Non-Current Liabilities | 314.59K | 385.73K | 193.15K | 201.65K | 247.11K | 435.9K | 274.5K |
| Long-Term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Capital Lease Obligations | 802.3K | 258.97K | 186.83K | 195.01K | 239.92K | 435.9K | 274.5K |
| Deferred Tax Liabilities | 31.36K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 94.1K | 126.76K | 6.31K | 6.64K | 7.19K | 0 | 0 |
| Total Liabilities | 6.39M | 8.25M | 2.58M | 3.97M | 3.25M | 3.03M | 2.86M |
| Total Debt | 2.4M | 3.06M | 435.39K | 627.52K | 557.67K | 791.77K | 422.9K |
| Net Debt | -1.6M | -4.54M | -4.93M | -4.32M | -2.11M | -3.09M | -1.77M |
| Debt / Equity | 0.14x | 0.19x | 0.03x | 0.04x | 0.03x | 0.07x | 0.06x |
| Debt / EBITDA | -0.14x | - | 0.29x | 0.32x | 0.16x | 0.23x | 0.34x |
| Net Debt / EBITDA | 0.10x | - | -3.24x | -2.22x | -0.60x | -0.91x | -1.41x |
| Interest Coverage | -22.42x | -39.75x | - | - | - | - | - |
| Total Equity | 16.59M | 16.56M | 17.11M | 16.73M | 16.13M | 11.92M | 7.41M |
| Equity Growth % | 2.66% | -3.22% | 2.28% | 3.71% | 35.32% | 60.84% | - |
| Book Value per Share | 9.28 | 12.55 | 13.42 | 12.31 | 11.87 | 8.77 | 1.19 |
| Total Shareholders' Equity | 10.65M | 10.47M | 10.74M | 10.8M | 10.6M | 7.76M | 4.8M |
| Common Stock | 2.97K | 2.37K | 2.05K | 2.03K | 2K | 2K | 2K |
| Retained Earnings | -10.37M | -3.07M | 7.73M | 7.73M | 7.28M | 5.54M | 3.72M |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | -40.08K | -217.94K | -166.02K | 348.2K | 1.12M | 811.26K | -63.13K |
| Minority Interest | 5.93M | 6.09M | 6.37M | 5.92M | 5.53M | 4.16M | 2.61M |
Liquidity exhaustion and insolvency
As reported in recent financial filings, Eshallgo's equity base has contracted from $13.8 million in 2025Q2 to $10.7 million by 2026Q2, reflecting a persistent deterioration in the company's net asset position as operational losses continue to erode shareholder value and overall balance sheet stability.
The consistent decline in retained earnings, which shifted from a positive $8.4 million in 2024Q4 to a deficit of $10.4 million in 2026Q2, suggests that the business model is currently unable to generate sufficient returns to cover its operating costs. This trajectory indicates that the company is consuming its own capital to fund ongoing operations, which warrants significant concern regarding long-term viability.
Based on the company's reported figures, cash reserves have plummeted from $7.6 million in 2025Q4 to $4.0 million in 2026Q2, signaling a rapid depletion of liquid assets that may leave the firm with limited flexibility to navigate further operational headwinds or unexpected capital requirements.
While the current ratio remains nominally high at 3.54, this metric may be misleading if the underlying current assets are comprised of slow-moving inventory or difficult-to-collect receivables. The rapid burn rate suggests that the company's liquidity buffer is shrinking at an unsustainable pace, potentially necessitating dilutive financing in the near term.
According to the latest balance sheet data, Eshallgo's debt-to-equity ratio has increased from 0.03 in 2024Q4 to 0.14 in 2026Q2, suggesting that the company is increasingly relying on external financing to bridge the widening gap between its operational cash outflows and its diminishing revenue streams.
Although the absolute debt level of $2.4 million remains relatively low, the trend of rising leverage in the face of negative profitability is concerning. Investors should monitor whether this debt is being utilized for essential working capital or if it represents a stop-gap measure to delay more severe restructuring.
As evidenced by the financial statements, net PPE has declined from $1.4 million in 2023Q4 to $757.1K in 2026Q2, indicating that the company is not reinvesting in its physical asset base, which may further impair its ability to deliver maintenance services effectively.
The lack of goodwill on the balance sheet suggests that the company has not pursued aggressive inorganic growth, yet the shrinking PPE base implies a potential under-investment in the infrastructure required to support its service-led business model. This asset-light trend may be a forced response to capital constraints rather than a strategic shift.
Quick answers to the most common questions about buying EHGO stock.
As of 2025, Eshallgo Inc. Class A Ordinary Shares (EHGO) had total assets of $24.8M including $23.0M in current assets.
Eshallgo Inc. Class A Ordinary Shares (EHGO) carries total debt of $3.1M, offset by $10.6M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Eshallgo Inc. Class A Ordinary Shares (EHGO) has total shareholders' equity (book value) of $10.5M ($12.55 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Eshallgo Inc. Class A Ordinary Shares (EHGO) reported a current ratio of 2.92x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.