The balance sheet appears increasingly vulnerable, evidenced by a current ratio that has deteriorated to a precarious 0.03 as of 2023Q3.
| Total Current Assets | 166.64K | 980.17K | 158 |
| Cash & Short-Term Investments | - | - | - |
| Cash Only | - | - | - |
| Short-Term Investments | - | - | - |
| Accounts Receivable | - | - | - |
| Days Sales Outstanding | - | - | - |
| Inventory | - | - | - |
| Days Inventory Outstanding | - | - | - |
| Other Current Assets | 87.54K | 187.75K | 0 |
| Total Non-Current Assets | 44.68M | 297.62M | 341.86K |
| Property, Plant & Equipment | 0 | 0 | 0 |
| Fixed Asset Turnover | - | - | - |
| Goodwill | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 |
| Long-Term Investments | 686.02M | 297.62M | 0 |
| Other Non-Current Assets | - | - | - |
| Total Assets | 44.85M | 298.6M | 342.02K |
| Asset Turnover | 0.00x | - | - |
| Asset Growth % | -168.03% | 87204.18% | - |
| Total Current Liabilities | 5.18M | 1.28M | 332.81K |
| Accounts Payable | 0 | 0 | 0 |
| Days Payables Outstanding | - | - | - |
| Short-Term Debt | 1.26M | 0 | 208.5K |
| Deferred Revenue (Current) | 0 | - | - |
| Other Current Liabilities | 3.93M | 1.28M | 124.31K |
| Current Ratio | 0.03x | 0.76x | 0.00x |
| Quick Ratio | 0.03x | 0.76x | 0.00x |
| Cash Conversion Cycle | - | - | - |
| Total Non-Current Liabilities | 3.55M | 15.67M | 0 |
| Long-Term Debt | 0 | 0 | 0 |
| Capital Lease Obligations | 0 | - | - |
| Deferred Tax Liabilities | 0 | - | - |
| Other Non-Current Liabilities | - | - | - |
| Total Liabilities | 8.73M | 16.96M | 332.81K |
| Total Debt | 1.26M | 0 | 208.5K |
| Net Debt | 1.18M | -792.42K | 208.34K |
| Debt / Equity | 0.03x | - | 22.63x |
| Debt / EBITDA | -0.24x | - | 145.60x |
| Net Debt / EBITDA | -0.23x | - | 145.49x |
| Interest Coverage | - | - | - |
| Total Equity | 36.12M | 281.64M | 9.21K |
| Equity Growth % | -166.23% | 3056589.29% | - |
| Book Value per Share | 2.55 | 10.52 | 0.00 |
| Total Shareholders' Equity | 36.12M | 281.64M | 9.21K |
| Common Stock | 44.68M | 297.62M | 1.01K |
| Retained Earnings | -20.39M | -15.98M | -15.79K |
| Treasury Stock | 0 | 0 | 0 |
| Accumulated OCI | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 |
Imminent capital depletion risk
As reported in financial statements, HCMA's total assets plummeted from $294.9 million in 2022Q1 to $44.8 million by 2023Q3, signaling a significant contraction in the entity's capital base as shareholders exercise redemption rights and the company nears the end of its search lifecycle.
The dramatic decline in total assets suggests that the shell entity is losing its capacity to facilitate a meaningful business combination. Investors should interpret this trend as a clear indicator that the vehicle is approaching a terminal state, with the shrinking asset base limiting the scope of potential acquisition targets.
Based on HCMA's reported figures, the current ratio has deteriorated to a precarious 0.03 as of 2023Q3, reflecting a severe lack of working capital to cover ongoing administrative expenses while the company struggles to finalize a definitive merger agreement within its remaining operational window.
The collapse of the current ratio from 3.84 in 2022Q1 to near-zero levels implies that the company is effectively operating on a month-to-month basis. This liquidity profile suggests that the firm may be forced into an unfavorable deal or liquidation if it cannot secure additional capital injections immediately.
According to recent SEC filings, HCMA's equity base has been significantly eroded by persistent losses, with retained earnings falling to -$20.4 million in 2023Q3, which underscores the structural inability of the shell to preserve shareholder value during its extended search for a viable business combination.
The consistent negative trend in retained earnings highlights the high cost of maintaining a public shell without operational revenue. This erosion of equity suggests that the remaining value for shareholders is increasingly tied to the trust account floor rather than any intrinsic growth in the entity's own capital structure.
As indicated by the provided data, the headline asset figure of $44.8 million in 2023Q3 is potentially misleading, as it masks the reality that the vast majority of these funds are restricted and subject to redemption, leaving minimal unencumbered capital for actual deal-making or operational flexibility.
Analysts should be wary of viewing the total asset figure as a proxy for deal-making power, as the high redemption rates typical of this sector effectively ring-fence the capital. This distortion suggests that the company's actual strategic flexibility is far lower than the balance sheet might imply to an unadjusted observer.
Quick answers to the most common questions about buying HCMA stock.
As of 2022, HCM Acquisition Corp (HCMA) had total assets of $298.6M including $1.0M in current assets.
HCM Acquisition Corp (HCMA) carries total debt of $0.0M. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
HCM Acquisition Corp (HCMA) has total shareholders' equity (book value) of $281.6M ($10.52 book value per share). Book value represents the net worth of the company belonging to common stock holders.
HCM Acquisition Corp (HCMA) reported a current ratio of 0.76x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.