Financial leverage is increasing, as evidenced by a debt-to-equity ratio of 0.26 and the emergence of $32.5 million in goodwill on the 2024Q4 balance sheet.
| Total Current Assets | 263.43M | 225.29M | 263.43M | 231.34M | 195.75M | 192.42M | 52.1M | 28.27M | 22.47M | 4.05M |
| Cash & Short-Term Investments | 33.18M | 35.14M | 33.18M | 30.12M | 48.48M | 74.1M | 11.06M | 9.93M | 4.92M | 317.66K |
| Cash Only | 30.38M | 30.32M | 30.38M | 30.12M | 48.47M | 44.05M | 4.85M | 9.93M | 4.92M | 317.66K |
| Short-Term Investments | 2.8M | 4.82M | 2.8M | 0 | 4K | 30.05M | 6.21M | 0 | 0 | 0 |
| Accounts Receivable | 61.06M | 30.75M | 61.06M | 28.14M | 102.76M | 57.94M | 40.32M | 17.64M | 17.3M | 816.4K |
| Days Sales Outstanding | 6.44 | 11.07 | 20.96 | 6.97 | 48.93 | 32.42 | 63.93 | 133.92 | 158.14 | 33.97 |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Days Inventory Outstanding | 8.94 | - | - | - | - | - | - | - | - | - |
| Other Current Assets | 3.76M | 288.19K | 3.76M | 173.07M | 3.55M | 283K | 241K | 695.41K | 250.45K | 2.91M |
| Total Non-Current Assets | 139.82M | 228.84M | 139.82M | 60.49M | 45.5M | 33.72M | 10.4M | 297.02K | 2.88M | 300.77K |
| Property, Plant & Equipment | 85.04M | 154.35M | 85.04M | 48.38M | 5.94M | 4.72M | 1.15M | 237.17K | 179.9K | 230.99K |
| Fixed Asset Turnover | 40.70x | 6.57x | 12.50x | 30.46x | 129.09x | 138.05x | 200.71x | 202.76x | 221.97x | 37.98x |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 32.52M | 34.84M | 32.52M | 0 | 102.76M | 10 | 0 | 0 | 0 | 0 |
| Long-Term Investments | 0 | 19.74M | 0 | 3K | 432 | 471 | 306.28K | 0 | 1M | 0 |
| Other Non-Current Assets | 0 | 104.08K | 0 | -3K | 38.96M | 28.43M | 8.51M | 59.85K | 1.7M | 69.78K |
| Total Assets | 403.25M | 454.13M | 403.25M | 291.82M | 241.25M | 226.14M | 62.51M | 28.56M | 25.35M | 4.35M |
| Asset Turnover | 6.84x | 2.23x | 2.64x | 5.05x | 3.18x | 2.88x | 3.68x | 1.68x | 1.58x | 2.02x |
| Asset Growth % | 158.83% | 12.62% | 38.18% | 20.96% | 6.68% | 261.77% | 118.85% | 12.68% | 482.77% | - |
| Total Current Liabilities | 137.57M | 139.82M | 137.57M | 95.23M | 123.37M | 144.9M | 7.26M | 15.59M | 18.94M | 1.14M |
| Accounts Payable | 46.8M | 35.55M | 46.8M | 35.22M | 86.98M | 103.07M | 42.94M | 12.13M | 12.91M | 382.61K |
| Days Payables Outstanding | 10.17 | 19.33 | 24.2 | 12.18 | 57.58 | 79.51 | 90.92 | 146.15 | 188.89 | 40.47 |
| Short-Term Debt | 67.47M | 94.92M | 67.47M | 39.38M | 5.92M | 0 | 0 | 0 | 0 | 0 |
| Deferred Revenue (Current) | 155.3M | 2.77M | 15.91M | 13.55M | 24.71M | 34.53M | 23.24K | 0 | 0 | 0 |
| Other Current Liabilities | 624K | 6.1M | 624K | 15.32M | 813K | 7.3M | -39.82M | 2.27M | 4.31M | 542.01K |
| Current Ratio | 1.91x | 1.61x | 1.91x | 2.43x | 1.59x | 1.33x | 7.17x | 1.81x | 1.19x | 3.54x |
| Quick Ratio | 1.91x | 1.61x | 1.91x | 2.43x | 1.59x | 1.33x | 7.17x | 1.81x | 1.19x | 3.54x |
| Cash Conversion Cycle | 5.21 | - | - | - | - | - | - | - | - | - |
| Total Non-Current Liabilities | 99K | 0 | 99K | 0 | 86K | 112M | 85.61M | 0 | 0 | 0 |
| Long-Term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Capital Lease Obligations | 500K | 0 | 99K | 0 | 86K | 0 | 0 | 0 | 0 | 0 |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 | 0 | -73.63K | 112M | 85.61M | 0 | 0 | 0 |
| Total Liabilities | 137.67M | 139.82M | 137.67M | 95.23M | 123.46M | 144.9M | 7.26M | 15.59M | 18.94M | 1.14M |
| Total Debt | 68.03M | 94.92M | 68.03M | 39.47M | 6.75M | 0 | 0 | 0 | 0 | 0 |
| Net Debt | 37.65M | 64.6M | 37.65M | 9.34M | -41.72M | -6.91M | -742.22K | -9.93M | -4.92M | -317.66K |
| Debt / Equity | 0.26x | 0.30x | 0.26x | 0.20x | 0.06x | - | - | - | - | - |
| Debt / EBITDA | 0.62x | 2.94x | 1.85x | 0.55x | 0.19x | - | - | - | - | - |
| Net Debt / EBITDA | 0.35x | 2.00x | 1.02x | 0.13x | -1.19x | -0.18x | -0.23x | -1.44x | -1.15x | -0.26x |
| Interest Coverage | 58.95x | 10.65x | 17.25x | 75.83x | - | 545.79x | - | - | - | - |
| Total Equity | 265.58M | 314.31M | 265.58M | 196.59M | 117.79M | 12.75M | 2.6M | 12.97M | 6.41M | 3.21M |
| Equity Growth % | 1506.96% | 18.35% | 35.09% | 66.9% | 824.13% | 389.91% | -79.94% | 102.38% | 99.86% | - |
| Book Value per Share | 136.08 | 130.45 | 136.08 | 100.73 | 59.22 | 6.41 | 1.31 | 89.07 | 43.89 | 22.29 |
| Total Shareholders' Equity | 262.83M | 311.49M | 262.83M | 194.14M | 115.86M | 12.7M | 2.6M | 12.95M | 6.41M | 3.21M |
| Common Stock | 3K | 3K | 3K | 3K | 3K | 471 | 459 | 2.91M | 2.91M | 2.91M |
| Retained Earnings | 97.12M | 104.4M | 97.12M | 80.6M | -8.75M | -5.84M | -10.75M | 9.91M | 3.15M | 298.31K |
| Treasury Stock | -856K | -856.54K | -856K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | 23.74M | 24.85M | 23.74M | 19.55M | 11.06M | 958.37K | 258.72K | -172.38K | 48.09K | 0 |
| Minority Interest | 2.75M | 2.82M | 2.75M | 2.45M | 1.94M | 48.95K | 2.75K | 25.1K | 0 | 0 |
Liquidity and margin erosion
As reported in recent financial filings, LGCL's total assets have fluctuated significantly, with the most recent 2024Q4 data showing $403.3 million in assets, yet the underlying quality appears compromised by the accumulation of goodwill and a reliance on debt to sustain operations during revenue contraction.
The shift from a debt-free status in 2021 to a $68.0 million debt load by 2024Q4 suggests that the company is increasingly reliant on external financing to bridge operational gaps. This trajectory warrants caution, as the expansion of the balance sheet does not appear to be driven by productive, high-margin asset growth.
Based on the company's reported figures, the debt-to-equity ratio has climbed to 0.26 as of 2024Q4, reflecting a strategic shift toward debt financing that may indicate difficulty in generating sufficient internal cash flow to support the firm's current service-heavy business model in a cooling market.
While a 0.26 D/E ratio remains relatively modest, the rapid transition from zero debt in 2022 to current levels suggests that management is increasingly utilizing leverage to manage liquidity. Investors should monitor whether this debt is being deployed for growth initiatives or merely to cover short-term working capital deficits.
According to the latest quarterly balance sheet, LGCL's current ratio has compressed to 1.91, down from 2.43 earlier in 2024, signaling that the company's ability to cover short-term obligations is weakening as cash reserves dwindle relative to the firm's total liabilities and ongoing operational requirements.
The decline in cash from $51.5 million in 2024Q2 to $30.4 million in 2024Q4 is particularly concerning given the company's thin net margins. This reduction in liquidity may limit the firm's flexibility to navigate further market volatility or invest in the platform technology required to maintain its competitive edge.
As disclosed in recent SEC filings, the emergence of $32.5 million in goodwill on the 2024Q4 balance sheet introduces a new layer of risk, as this intangible asset may be subject to future impairment charges if the company's recruitment and outsourcing segments fail to meet performance expectations.
The sudden appearance of goodwill suggests recent acquisitions or accounting adjustments that may not reflect tangible value creation. Analysts should be wary of this line item, as it potentially inflates the book value of equity and could lead to significant write-downs if the underlying business units continue to struggle with profitability.
Quick answers to the most common questions about buying LGCL stock.
As of 2025, Lucas GC Limited Ordinary Shares (LGCL) had total assets of $454.1M including $225.3M in current assets.
Lucas GC Limited Ordinary Shares (LGCL) carries total debt of $94.9M, offset by $35.1M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Lucas GC Limited Ordinary Shares (LGCL) has total shareholders' equity (book value) of $311.5M ($130.45 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Lucas GC Limited Ordinary Shares (LGCL) reported a current ratio of 1.61x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.