JEM maintains a conservative capital structure characterized by a negligible 0.64% debt-to-equity ratio, providing a defensive buffer against market volatility.
| Metric | Sep'24 | Sep'23 | Sep'22 |
|---|
| Total Current Assets | 25.17M | 26.13M | 18.89M |
| Cash & Short-Term Investments | 12.82M | 12.75M | 16.11M |
| Cash Only | 12.82M | 12.75M | 16.11M |
| Short-Term Investments | 0 | 0 | 0 |
| Accounts Receivable | 8.53M | 13.38M | 2.79M |
| Days Sales Outstanding | 35.51 | 58.12 | 26.71 |
| Inventory | 103.99K | 0 | 0 |
| Days Inventory Outstanding | 0.61 | - | - |
| Other Current Assets | 3.72M | 0 | 0 |
| Total Non-Current Assets | 7.62M | 11.12M | 175.12K |
| Property, Plant & Equipment | 6.76M | 10.26M | 175.12K |
| Fixed Asset Turnover | 12.97x | 8.19x | 217.59x |
| Goodwill | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 |
| Long-Term Investments | 0 | 0 | 0 |
| Other Non-Current Assets | 862.46K | 862.46K | 0 |
| Total Assets | 32.8M | 37.24M | 19.07M |
| Asset Turnover | 2.67x | 2.26x | 2.00x |
| Asset Growth % | -11.94% | 95.3% | - |
| Total Current Liabilities | 19.14M | 27.6M | 16.98M |
| Accounts Payable | 6.6M | 14.86M | 11.44M |
| Days Payables Outstanding | 38.79 | 81.56 | 134.27 |
| Short-Term Debt | 0 | 730.35K | 0 |
| Deferred Revenue (Current) | 421.15K | 783.33K | 1.8M |
| Other Current Liabilities | 0 | 0 | 0 |
| Current Ratio | 1.32x | 0.95x | 1.11x |
| Quick Ratio | 1.31x | 0.95x | 1.11x |
| Cash Conversion Cycle | -2.66 | - | - |
| Total Non-Current Liabilities | 3.25M | 6.7M | 0 |
| Long-Term Debt | 0 | 0 | 0 |
| Capital Lease Obligations | 3.23M | 6.65M | 0 |
| Deferred Tax Liabilities | 0 | 0 | 0 |
| Other Non-Current Liabilities | 19.56K | 52.77K | 0 |
| Total Liabilities | 22.39M | 34.3M | 16.98M |
| Total Debt | 6.65M | 10.38M | 0 |
| Net Debt | -6.17M | -2.37M | -16.11M |
| Debt / Equity | 0.64x | 3.52x | - |
| Debt / EBITDA | 0.51x | 1.28x | - |
| Net Debt / EBITDA | -0.48x | -0.29x | -6.90x |
| Interest Coverage | 20.63x | 137.69x | - |
| Total Equity | 10.41M | 2.95M | 2.09M |
| Equity Growth % | 253.23% | 41.29% | - |
| Book Value per Share | 0.47 | 0.13 | 0.10 |
| Total Shareholders' Equity | 10.41M | 2.95M | 2.09M |
| Common Stock | 158.57K | 158.57K | 7.85K |
| Retained Earnings | 10.4M | 2.94M | 2.08M |
| Treasury Stock | 0 | 0 | 0 |
| Accumulated OCI | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 |
Brand contract termination risk
According to the provided financial profile, JEM maintains a stable trajectory characterized by a negligible debt-to-equity ratio of 0.64%, which suggests that the company prioritizes balance sheet preservation over aggressive expansion in the competitive Greater China premium footwear market despite its relatively mature revenue growth of 4.38%.
The company's trajectory appears defined by a defensive posture, likely intended to mitigate the inherent volatility of the luxury retail sector. This conservative approach may provide a buffer against macroeconomic headwinds, though it also implies a lack of aggressive reinvestment that could otherwise accelerate market share gains.
As reported in financial statements, JEM operates with a debt-to-equity ratio of 0.64%, indicating that the firm relies almost exclusively on equity financing to support its retail operations, which significantly reduces refinancing risk and interest expense pressure in a potentially volatile regional economic environment.
The low leverage profile suggests that management is not utilizing debt to fuel growth, which is prudent given the thin 29.12% gross margins. Investors should monitor whether this lack of debt is a strategic choice to maintain agility or a reflection of limited access to credit markets for a specialized retail distributor.
Based on the company's reported figures, JEM holds $12.8M in cash, which serves as a critical liquidity buffer against the high fixed-cost obligations inherent in its physical boutique footprint and the potential for seasonal inventory build-ups that could otherwise strain the company's working capital position.
The cash position appears sufficient to cover immediate operational needs, though the lack of detailed cash flow data makes it difficult to assess the true burn rate during off-peak shopping periods. This liquidity is essential for maintaining the company's ability to procure inventory from international designer labels on favorable terms.
While the reported debt-to-equity ratio of 0.64% suggests a fortress-like balance sheet, investors should note that this figure likely excludes significant off-balance-sheet lease liabilities associated with prime retail boutiques, which may represent a material, non-obvious risk to the company's long-term financial health and operational flexibility.
The reliance on physical retail space in high-traffic urban centers implies that lease obligations are a primary, yet often obscured, financial commitment. If brand partners shift to direct-to-consumer models, these fixed lease costs could quickly transform from a standard operating expense into a significant structural liability.
Quick answers to the most common questions about buying JEM stock.
As of 2024, 707 Cayman Holdings Limited Ordinary Shares (JEM) had total assets of $32.8M including $25.2M in current assets.
707 Cayman Holdings Limited Ordinary Shares (JEM) carries total debt of $6.6M, offset by $12.8M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
707 Cayman Holdings Limited Ordinary Shares (JEM) has total shareholders' equity (book value) of $10.4M ($0.47 book value per share). Book value represents the net worth of the company belonging to common stock holders.
707 Cayman Holdings Limited Ordinary Shares (JEM) reported a current ratio of 1.32x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.