The company's financial stability is severely compromised, highlighted by a debt-to-equity ratio that escalated to 108.40 in 2024Q4 from 4.51 in 2023Q4.
| Total Current Assets | 1.69M | 948K | 1.07M |
| Cash & Short-Term Investments | 314K | 815K | 504K |
| Cash Only | 314K | 815K | 504K |
| Short-Term Investments | 0 | 0 | 0 |
| Accounts Receivable | 53K | 2K | 565K |
| Days Sales Outstanding | 4.59 | 0.16 | 74.61 |
| Inventory | 0 | 0 | 0 |
| Days Inventory Outstanding | - | - | - |
| Other Current Assets | 0 | 0 | 0 |
| Total Non-Current Assets | 679K | 671K | 18K |
| Property, Plant & Equipment | 621K | 671K | 18K |
| Fixed Asset Turnover | 6.79x | 6.93x | 153.56x |
| Goodwill | 0 | 0 | 0 |
| Intangible Assets | 58K | 0 | 0 |
| Long-Term Investments | 0 | 0 | 0 |
| Other Non-Current Assets | 0 | 0 | 0 |
| Total Assets | 2.36M | 1.62M | 1.09M |
| Asset Turnover | 1.78x | 2.87x | 2.53x |
| Asset Growth % | 46.02% | 48.12% | - |
| Total Current Liabilities | 1.95M | 981K | 675K |
| Accounts Payable | 79K | 67K | 0 |
| Days Payables Outstanding | 10.7 | 9.19 | - |
| Short-Term Debt | 1.19M | 113K | 101K |
| Deferred Revenue (Current) | 352K | 462K | 355K |
| Other Current Liabilities | 0 | 0 | 0 |
| Current Ratio | 0.86x | 0.97x | 1.59x |
| Quick Ratio | 0.86x | 0.97x | 1.59x |
| Cash Conversion Cycle | - | - | - |
| Total Non-Current Liabilities | 398K | 495K | 157K |
| Long-Term Debt | 398K | 460K | 157K |
| Capital Lease Obligations | 0 | 35K | 0 |
| Deferred Tax Liabilities | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 |
| Total Liabilities | 2.35M | 1.48M | 832K |
| Total Debt | 1.63M | 645K | 258K |
| Net Debt | 1.31M | -170K | -246K |
| Debt / Equity | 108.40x | 4.51x | 0.99x |
| Debt / EBITDA | 12.51x | 0.52x | 0.33x |
| Net Debt / EBITDA | 10.09x | -0.14x | -0.32x |
| Interest Coverage | 7.67x | 23.20x | 44.01x |
| Total Equity | 15K | 143K | 261K |
| Equity Growth % | -89.51% | -45.21% | - |
| Book Value per Share | 0.40 | 3.79 | 6.91 |
| Total Shareholders' Equity | 15K | 143K | 261K |
| Common Stock | 0 | 11K | 11K |
| Retained Earnings | 4K | 132K | 250K |
| Treasury Stock | 0 | 0 | 0 |
| Accumulated OCI | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 |
Insolvency and liquidity constraints
As reported in recent financial filings, FCHL's equity base has plummeted from $143.5K in 2023Q4 to a mere $15.0K by 2024Q4, signaling a severe deterioration in the company's net worth that leaves the balance sheet increasingly exposed to operational volatility and potential insolvency risks.
The precipitous decline in equity suggests that the company is struggling to retain earnings while simultaneously managing a mounting debt burden. This trajectory indicates that the business model is currently failing to generate sufficient value to offset its liabilities, placing the firm in a precarious financial position.
According to the latest quarterly data, FCHL's debt-to-equity ratio has surged to 108.40, a dramatic increase from 4.51 in 2023Q4, which suggests that the company is relying heavily on debt financing to sustain operations amidst a shrinking equity base and declining revenue performance.
This level of leverage is highly concerning given the company's thin operating margins and lack of significant cash reserves. Investors should monitor whether this debt is sustainable or if it necessitates a dilutive capital raise to prevent a breach of financial covenants.
Based on the 2024Q4 balance sheet, the company maintains a current ratio of 0.86, which, as noted in recent disclosures, reflects a persistent inability to cover short-term obligations with existing liquid assets, further exacerbated by a cash balance that has declined significantly over the past year.
A current ratio below unity implies that the company may struggle to meet its immediate operational commitments without continuous cash inflows from new contracts. This lack of a liquidity buffer leaves the firm highly vulnerable to any unexpected disruptions in its service delivery or school contract renewals.
As indicated by the 2024Q4 financial statements, the company carries $352.0K in deferred revenue, which represents a significant liability that must be serviced through future service delivery, potentially masking the true extent of the company's operational strain and limited cash-generating capacity.
While deferred revenue is a standard feature of service-based models, its magnitude relative to the company's total assets suggests that a large portion of the balance sheet is tied to future performance obligations. If the company fails to fulfill these contracts, it could face substantial refund liabilities that would further impair its already fragile liquidity position.
Quick answers to the most common questions about buying FCHL stock.
As of 2024, Fitness Champs Holdings Limited Common Stock (FCHL) had total assets of $2.4M including $1.7M in current assets.
Fitness Champs Holdings Limited Common Stock (FCHL) carries total debt of $1.6M, offset by $0.3M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Fitness Champs Holdings Limited Common Stock (FCHL) has total shareholders' equity (book value) of $0.0M ($0.40 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Fitness Champs Holdings Limited Common Stock (FCHL) reported a current ratio of 0.86x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.