The capital structure appears increasingly fragile, evidenced by an erosion of shareholder equity to $2.7 million and a significant goodwill balance of $621,800 relative to $4.5 million in total assets.
| Total Current Assets | 1.75M | 2.59M | 2.07M | 3.38M | 3.81M | 858.53K |
| Cash & Short-Term Investments | 188.39K | 619.94K | 14.14K | 91.99K | 1.56M | 403.49K |
| Cash Only | 188.39K | 619.94K | 14.14K | 91.99K | 1.56M | 403.49K |
| Short-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 10.62K | 14.68K | 455.04K | 1.61M | 995.67K | 15.04K |
| Days Sales Outstanding | 38.96 | 1.83 | 52.76 | 129.77 | 96.96 | 2.52 |
| Inventory | 1.12M | 1.12M | 989.59K | 1.41M | 1.07M | 428.45K |
| Days Inventory Outstanding | 99.82 | 582.73 | 330.36 | 242.54 | 311.06 | 354.04 |
| Other Current Assets | 241.95K | 405.69K | 441.03K | 0 | 0 | 0 |
| Total Non-Current Assets | 2.79M | 2.37M | 2.86M | 1.19M | 2.71M | 2.6M |
| Property, Plant & Equipment | 239.04K | 322.44K | 203.69K | 371.57K | 549.65K | 637.89K |
| Fixed Asset Turnover | 18.92x | 9.09x | 15.45x | 12.19x | 6.82x | 3.42x |
| Goodwill | 0 | 0 | 0 | 0 | 951.8K | 0 |
| Intangible Assets | 621.75K | 339.03K | 371.63K | 392.49K | 421.56K | 0 |
| Long-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 988.54K | 814.74K | 1.82M | 34.69K | 733.89K | 1.92M |
| Total Assets | 4.54M | 4.96M | 4.93M | 4.56M | 6.51M | 3.46M |
| Asset Turnover | 0.92x | 0.59x | 0.64x | 0.99x | 0.58x | 0.63x |
| Asset Growth % | -2.01% | 0.48% | 8.08% | -29.94% | 88.51% | - |
| Total Current Liabilities | 1.85M | 2.28M | 4.28M | 4.13M | 2.55M | 1.57M |
| Accounts Payable | 1.72M | 1.9M | 3.89M | 3.65M | 2.21M | 1.42M |
| Days Payables Outstanding | 262.42 | 992.49 | 1.3K | 627.75 | 643.45 | 1.17K |
| Short-Term Debt | 123.16K | 421.6K | 1.6M | 1.51M | 708.06K | 197.78K |
| Deferred Revenue (Current) | 317.13K | 0 | 161.04K | 159.51K | 170.83K | 0 |
| Other Current Liabilities | 457 | -188.95K | -1.43M | -1.35M | -708.06K | -197.78K |
| Current Ratio | 0.95x | 1.14x | 0.48x | 0.82x | 1.49x | 0.55x |
| Quick Ratio | 0.34x | 0.65x | 0.25x | 0.48x | 1.07x | 0.27x |
| Cash Conversion Cycle | -123.64 | -407.93 | -914.39 | -255.44 | -235.44 | -814.72 |
| Total Non-Current Liabilities | 13.76K | 57.8K | 45.85K | 135.45K | 267.02K | 422.45K |
| Long-Term Debt | 0 | 0 | 0 | 47.26K | 0 | 0 |
| Capital Lease Obligations | 0 | 40.11K | 0 | 69.72K | 248.78K | 410.45K |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 13.76K | 17.69K | 45.85K | 18.46K | 18.24K | 12K |
| Total Liabilities | 1.86M | 2.34M | 4.32M | 4.27M | 2.82M | 1.99M |
| Total Debt | 123.16K | 605.95K | 1.66M | 1.78M | 1.12M | 758.98K |
| Net Debt | -65.24K | -435.59K | 1.65M | 1.69M | -435.68K | 355.5K |
| Debt / Equity | 0.05x | 0.23x | 2.73x | 6.03x | 0.30x | 0.52x |
| Debt / EBITDA | -0.03x | - | - | - | 5.29x | 1.04x |
| Net Debt / EBITDA | 0.02x | - | - | - | -2.05x | 0.49x |
| Interest Coverage | -12.18x | -11.52x | -7.66x | -21.07x | 3.71x | 135.39x |
| Total Equity | 2.68M | 2.62M | 608.47K | 295.7K | 3.69M | 1.46M |
| Equity Growth % | 120.98% | 330.44% | 105.77% | -92% | 152.3% | - |
| Book Value per Share | 7.43 | 7.89 | 2.01 | 0.98 | 9.22 | 3.65 |
| Total Shareholders' Equity | 2.68M | 2.62M | 608.47K | 295.7K | 3.69M | 1.46M |
| Common Stock | 12.83M | 11.62M | 6.98M | 4.63M | 3.94M | 420 |
| Retained Earnings | -10.04M | -8.8M | -6.21M | -4.22M | -203.03K | 1.36M |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | -112.45K | -204.72K | -158.65K | -112.93K | -44.44K | 103.07K |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent insolvency and dilution
As reported in recent financial filings, IBG's equity has plummeted from $3.7 million in 2021Q4 to $2.7 million in 2025Q2, reflecting a persistent erosion of shareholder value driven by the company's inability to achieve operational profitability while managing its high-cost, asset-heavy beverage manufacturing and distribution model.
The consistent decline in retained earnings, which now sit at negative $10.0 million, suggests that the company's business model has failed to generate sufficient returns to cover its operating expenses. This trajectory indicates that the balance sheet is becoming increasingly fragile, leaving little room for error in a competitive and capital-intensive industry.
Based on the latest quarterly data, IBG maintains a cash position of only $188,400 against a current ratio of 0.95, which, according to historical trends, highlights a severe lack of liquidity buffer to support ongoing operations or unexpected market volatility in the beverage sector.
The current ratio falling below unity suggests that the company may struggle to meet its short-term obligations without immediate external financing. Investors should monitor the company's ability to manage its working capital, as the current cash reserves appear insufficient to sustain the business through another period of negative operating cash flow.
As indicated by the company's financial statements, the equity base has been severely compromised by accumulated losses, with retained earnings reaching negative $10.0 million as of 2025Q2, signaling that the company's capital structure is heavily reliant on external funding rather than internal value creation.
The persistent negative retained earnings suggest that the company is effectively consuming its initial capital to fund its growth initiatives. This reliance on external capital raises significant concerns regarding potential future dilution for existing shareholders, as the company may be forced to issue equity to maintain its operational existence.
According to recent balance sheet disclosures, the presence of $621,800 in goodwill, representing a significant portion of the $4.5 million total assets, warrants further investigation into potential impairment risks if the company's proprietary brands fail to achieve the expected market penetration in the U.S. and Australia.
The reliance on intangible assets like goodwill in a company with negative operating margins suggests that the asset base may be overstated. If the company's growth strategy continues to underperform, these assets could be subject to write-downs, further weakening an already strained balance sheet.
Quick answers to the most common questions about buying IBG stock.
As of 2024, Innovation Beverage Group Limited (IBG) had total assets of $5.0M including $2.6M in current assets.
Innovation Beverage Group Limited (IBG) carries total debt of $0.6M, offset by $0.6M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Innovation Beverage Group Limited (IBG) has total shareholders' equity (book value) of $2.6M ($7.89 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Innovation Beverage Group Limited (IBG) reported a current ratio of 1.14x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.