Financial solvency is rapidly eroding as evidenced by the collapse of the current ratio from 4.25 in 2023Q3 to 0.56 in 2024Q4, signaling an imminent liquidity crisis.
| Total Current Assets | 3.89M | 18.08M | 3.89M | 5.19M |
| Cash & Short-Term Investments | - | - | - | - |
| Cash Only | - | - | - | - |
| Short-Term Investments | - | - | - | - |
| Accounts Receivable | - | - | - | - |
| Days Sales Outstanding | - | - | - | - |
| Inventory | - | - | - | - |
| Days Inventory Outstanding | - | - | - | - |
| Other Current Assets | 2.64M | 4.15M | 2.64M | 1.38M |
| Total Non-Current Assets | 4.61M | 68.68M | 4.61M | 3.58M |
| Property, Plant & Equipment | 64.59K | 4.87M | 64.59K | 201.42K |
| Fixed Asset Turnover | -124478.19x | 11.07x | 7.45x | 1.03x |
| Goodwill | 0 | 41.83M | 0 | 0 |
| Intangible Assets | 0 | 11.85M | 0 | 0 |
| Long-Term Investments | 8.9M | 4.87M | 2.78M | 1.6M |
| Other Non-Current Assets | - | - | - | - |
| Total Assets | 8.49M | 86.76M | 8.49M | 8.78M |
| Asset Turnover | -1958.60x | 0.62x | 0.06x | 0.02x |
| Asset Growth % | -26.24% | 921.62% | -3.26% | - |
| Total Current Liabilities | 6.93M | 74.83M | 6.93M | 2.67M |
| Accounts Payable | 5.93M | 3.96M | 5.93M | 311.55K |
| Days Payables Outstanding | - | - | - | - |
| Short-Term Debt | 965.22K | 28.98M | 965.22K | 0 |
| Deferred Revenue (Current) | 0 | - | - | - |
| Other Current Liabilities | 422 | 1.3M | 130M | 67.73K |
| Current Ratio | 0.56x | 0.24x | 0.56x | 1.95x |
| Quick Ratio | 0.56x | 0.24x | 0.56x | 1.95x |
| Cash Conversion Cycle | - | - | - | - |
| Total Non-Current Liabilities | 3.07M | 26.83M | 3.07M | 98.78K |
| Long-Term Debt | 2.67M | 1.8M | 2.67M | 0 |
| Capital Lease Obligations | 0 | - | - | - |
| Deferred Tax Liabilities | 0 | - | - | - |
| Other Non-Current Liabilities | - | - | - | - |
| Total Liabilities | 10M | 101.67M | 10M | 2.77M |
| Total Debt | 3.67M | 36.29M | 3.67M | 167.83K |
| Net Debt | 3.34M | 30.64M | 3.34M | -2.36M |
| Debt / Equity | -2.43x | - | - | 0.03x |
| Debt / EBITDA | -0.00x | - | - | - |
| Net Debt / EBITDA | -0.00x | - | - | - |
| Interest Coverage | - | -52.19x | - | - |
| Total Equity | -1.51M | -14.91M | -1.51M | 6.01M |
| Equity Growth % | -220.72% | -886.73% | -125.13% | - |
| Book Value per Share | -0.02 | - | -0.02 | 0.10 |
| Total Shareholders' Equity | -1.51M | -14.71M | -1.51M | 6.01M |
| Common Stock | 1K | 6.26K | 1K | 1K |
| Retained Earnings | -21.8M | -117.15M | -21.8M | -8.93M |
| Treasury Stock | 0 | 0 | 0 | -57 |
| Accumulated OCI | -251K | -39.69M | -251K | 72.04K |
| Minority Interest | 0 | -202.52K | 0 | 0 |
Imminent liquidity and solvency risk
As reported in recent financial statements, KWM's equity position has deteriorated from a positive $9.5 million in 2023Q3 to a negative $1.5 million by 2024Q4, signaling a rapid erosion of shareholder value that appears driven by persistent, large-scale net losses and an inability to stabilize the balance sheet.
The shift into negative equity suggests that the company's accumulated losses have now fully exhausted its capital base. This trajectory implies that the firm is currently operating in a state of technical insolvency, which warrants extreme caution regarding its long-term viability as a going concern.
Based on KWM's reported figures, total debt has surged from $186.5K in 2023Q3 to $3.7 million by 2024Q4, a trend that appears highly concerning given the company's shrinking asset base and the absence of consistent operating cash flow to support such an aggressive accumulation of liabilities.
The rapid increase in debt, coupled with the erosion of equity, suggests that management is relying on external financing to bridge operational gaps rather than organic profit generation. Investors should monitor whether this debt is sustainable or if it represents a desperate attempt to fund ongoing cash burn.
According to recent SEC filings, KWM's cash reserves have plummeted from $5.1 million in 2023Q3 to a mere $333.1K in 2024Q4, while the current ratio has simultaneously collapsed from 4.25 to 0.56, indicating a severe and immediate threat to the company's ability to meet short-term obligations.
A current ratio below 1.0 suggests that current liabilities now exceed current assets, leaving the company with virtually no margin for error. This liquidity profile appears to necessitate an immediate capital raise, which would likely be highly dilutive to existing shareholders given the current financial distress.
As indicated by the provided balance sheet data, KWM carries negligible PPE of only $64.6K, which suggests that the company lacks meaningful tangible assets to collateralize its rising debt load, leaving creditors and shareholders exposed to significant impairment risk should the business model fail to gain traction.
The absence of significant tangible assets or goodwill on the balance sheet implies that the company's value is entirely dependent on intangible licensing rights that are not explicitly capitalized. This lack of asset backing makes the company's valuation highly speculative and vulnerable to sudden shifts in market sentiment or IP access.
Quick answers to the most common questions about buying KWM stock.
As of 2025, K Wave Media Ltd. (KWM) had total assets of $86.8M including $18.1M in current assets.
K Wave Media Ltd. (KWM) carries total debt of $36.3M. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
K Wave Media Ltd. (KWM) has total shareholders' equity (book value) of $-14.7M. Book value represents the net worth of the company belonging to common stock holders.
K Wave Media Ltd. (KWM) reported a current ratio of 0.24x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.