The company maintains a conservative financial profile characterized by a 0.49 debt-to-equity ratio, which provides a degree of stability amidst its narrow operating margins.
| Metric | Mar'25 | Mar'24 | Mar'23 |
|---|
| Total Current Assets | 6.31M | 6.65M | 4.2M |
| Cash & Short-Term Investments | 4.37M | 5.39M | 2.34M |
| Cash Only | 4.37M | 5.39M | 2.34M |
| Short-Term Investments | 0 | 0 | 0 |
| Accounts Receivable | 1.5M | 1.25M | 1.85M |
| Days Sales Outstanding | 29.45 | 26.71 | 40.67 |
| Inventory | 0 | 0 | 0 |
| Days Inventory Outstanding | - | - | - |
| Other Current Assets | 0 | 0 | 0 |
| Total Non-Current Assets | 611.88K | 681K | 932.51K |
| Property, Plant & Equipment | 579.02K | 663.03K | 929.22K |
| Fixed Asset Turnover | 32.14x | 25.83x | 17.91x |
| Goodwill | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 |
| Long-Term Investments | 0 | 0 | 0 |
| Other Non-Current Assets | 0 | 0 | 0 |
| Total Assets | 6.93M | 7.33M | 5.13M |
| Asset Turnover | 2.69x | 2.34x | 3.24x |
| Asset Growth % | -5.54% | 42.9% | - |
| Total Current Liabilities | 3.13M | 4.43M | 3.39M |
| Accounts Payable | 1.72M | 987.67K | 1.71M |
| Days Payables Outstanding | 38.75 | 24.11 | 41.41 |
| Short-Term Debt | 184.33K | 187.29K | 160.76K |
| Deferred Revenue (Current) | 430.74K | 518.44K | 667.92K |
| Other Current Liabilities | 0 | 0 | 0 |
| Current Ratio | 2.02x | 1.50x | 1.24x |
| Quick Ratio | 2.02x | 1.50x | 1.24x |
| Cash Conversion Cycle | - | - | - |
| Total Non-Current Liabilities | 1.01M | 622.71K | 396.58K |
| Long-Term Debt | 854.86K | 434.14K | 113.31K |
| Capital Lease Obligations | 151.97K | 188.57K | 283.27K |
| Deferred Tax Liabilities | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 |
| Total Liabilities | 4.13M | 5.05M | 3.78M |
| Total Debt | 1.37M | 920.51K | 722.09K |
| Net Debt | -3.01M | -4.47M | -1.61M |
| Debt / Equity | 0.49x | 0.40x | 0.54x |
| Debt / EBITDA | 1.71x | 0.79x | 1.54x |
| Net Debt / EBITDA | -3.76x | -3.81x | -3.45x |
| Interest Coverage | 6.87x | 15.71x | 5.17x |
| Total Equity | 2.79M | 2.28M | 1.35M |
| Equity Growth % | 22.45% | 69.2% | - |
| Book Value per Share | 0.13 | 0.11 | 0.06 |
| Total Shareholders' Equity | 2.79M | 2.28M | 1.35M |
| Common Stock | 0 | 0 | 0 |
| Retained Earnings | 2.77M | 2.28M | 1.35M |
| Treasury Stock | 0 | 0 | 0 |
| Accumulated OCI | 24.7K | 511 | -3.85K |
| Minority Interest | 0 | 0 | 0 |
Thin operating margin buffer
According to the provided financial snapshot, KMRK maintains a debt-to-equity ratio of 0.49, which suggests a disciplined approach to capital structure that prioritizes balance sheet preservation over aggressive expansion within the highly competitive and low-margin electromechanical toy manufacturing sector for Western export markets.
The low leverage profile indicates that management is likely avoiding the risks associated with high interest burdens, which is prudent given the company's thin 2.83% operating margin. This conservative stance provides a necessary buffer against potential volatility in input costs or sudden shifts in global shipping rates.
As reported in financial statements, KMRK holds a cash position of $4.37 million, which serves as a critical liquidity reserve for a company operating with such narrow margins and high sensitivity to seasonal demand fluctuations from its primary international retail distribution partners.
While the absolute cash balance appears modest, it represents a vital safety net for a business model that lacks significant pricing power. Investors should monitor whether this liquidity is sufficient to cover working capital requirements during the off-peak quarters when revenue generation is typically at its lowest.
Based on the company's reported figures, KMRK's balance sheet appears to be maintaining a stable trajectory, characterized by a cautious capital allocation strategy that avoids excessive debt while navigating the structural challenges of a low-margin, export-oriented consumer cyclical business model in the current environment.
The company's ability to maintain a healthy debt-to-equity ratio suggests that management is focused on long-term viability rather than short-term financial engineering. However, the lack of significant asset growth or reinvestment may indicate that the business is currently in a defensive posture rather than an expansionary phase.
As noted in industry-wide analysis, the reliance on electromechanical components introduces significant obsolescence risk, which may not be fully captured in the headline balance sheet figures if inventory valuation does not adequately account for rapid shifts in educational curricula or consumer technology preferences.
The potential for inventory write-downs remains a non-obvious risk that could quickly erode the company's thin net margin. Investors should investigate the aging profile of the company's inventory to determine if the reported asset values are truly representative of their realizable market value.
Quick answers to the most common questions about buying KMRK stock.
As of 2024, K-TECH SOLUTIONS CO LTD (KMRK) had total assets of $6.9M including $6.3M in current assets.
K-TECH SOLUTIONS CO LTD (KMRK) carries total debt of $1.4M, offset by $4.4M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
K-TECH SOLUTIONS CO LTD (KMRK) has total shareholders' equity (book value) of $2.8M ($0.13 book value per share). Book value represents the net worth of the company belonging to common stock holders.
K-TECH SOLUTIONS CO LTD (KMRK) reported a current ratio of 2.02x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.