The company maintains a low debt-to-equity ratio of 0.23%, though this appears to be a byproduct of limited capital access rather than strategic strength, given the precarious cash position of $108,745.
| Metric | Mar'25 | Mar'24 | Mar'23 | Mar'22 |
|---|
| Total Current Assets | 23.06M | 15.48M | 8.96M | 2.42M |
| Cash & Short-Term Investments | 108.75K | 206.19K | 752.01K | 150.32K |
| Cash Only | 108.75K | 206.19K | 752.01K | 150.32K |
| Short-Term Investments | 0 | 0 | 0 | 0 |
| Accounts Receivable | 20.58M | 14.4M | 8.1M | 2M |
| Days Sales Outstanding | 205.59 | 143.6 | 226.33 | 768.36 |
| Inventory | 0 | 0 | 0 | 0 |
| Days Inventory Outstanding | - | - | - | - |
| Other Current Assets | 0 | 0 | 0 | 0 |
| Total Non-Current Assets | 7.67M | 3.65M | 275.5K | 236.24K |
| Property, Plant & Equipment | 188K | 454.06K | 35.2K | 51.58K |
| Fixed Asset Turnover | 194.36x | 80.60x | 371.38x | 18.41x |
| Goodwill | 0 | 0 | 0 | 0 |
| Intangible Assets | 42.32K | 11.57K | 9.42K | 10.26K |
| Long-Term Investments | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 6.96M | 2.9M | 120.82K | 0 |
| Total Assets | 30.73M | 19.13M | 9.24M | 2.66M |
| Asset Turnover | 1.19x | 1.91x | 1.41x | 0.36x |
| Asset Growth % | 60.63% | 107.05% | 247.73% | - |
| Total Current Liabilities | 18.65M | 10.88M | 5.77M | 1.23M |
| Accounts Payable | 11.78M | 4.8M | 3.2M | 198.29K |
| Days Payables Outstanding | 159.49 | 61.12 | 120.18 | 152.73 |
| Short-Term Debt | 2.1M | 1.85M | 693.02K | 202.81K |
| Deferred Revenue (Current) | 0 | 795.13K | 7.15K | 720.08K |
| Other Current Liabilities | 501.56K | 26.46K | 55.73K | 17.47K |
| Current Ratio | 1.24x | 1.42x | 1.55x | 1.96x |
| Quick Ratio | 1.24x | 1.42x | 1.55x | 1.96x |
| Cash Conversion Cycle | - | - | - | - |
| Total Non-Current Liabilities | 425.68K | 402.72K | 218.14K | 103.23K |
| Long-Term Debt | 425.68K | 289.32K | 218.14K | 103.23K |
| Capital Lease Obligations | 0 | 113.39K | 0 | 0 |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 | 0 |
| Total Liabilities | 19.08M | 11.28M | 5.99M | 1.34M |
| Total Debt | 2.65M | 2.51M | 911.16K | 312.78K |
| Net Debt | 2.54M | 2.3M | 159.16K | 162.46K |
| Debt / Equity | 0.23x | 0.32x | 0.28x | 0.24x |
| Debt / EBITDA | 0.78x | 0.80x | 0.49x | - |
| Net Debt / EBITDA | 0.75x | 0.74x | 0.09x | - |
| Interest Coverage | 32.05x | 51.52x | 31.55x | -6.69x |
| Total Equity | 11.65M | 7.85M | 3.25M | 1.32M |
| Equity Growth % | 48.47% | 141.65% | 145.85% | - |
| Book Value per Share | 3.73 | 2.51 | 1.04 | 0.42 |
| Total Shareholders' Equity | 11.6M | 7.85M | 3.25M | 1.32M |
| Common Stock | 5K | 5K | 5K | 5K |
| Retained Earnings | 6.99M | 4.01M | 1.35M | -260.58K |
| Treasury Stock | 0 | 0 | 0 | 0 |
| Accumulated OCI | 222.11K | 152.56K | 180.57K | 280.58K |
| Minority Interest | 57.75K | -150 | -61 | -6 |
Severe liquidity and collection risk
As reported in financial statements, LHSW maintains a precarious cash position of only $108,745 against $36.5 million in annual revenue, which suggests that the company lacks the necessary liquidity buffer to absorb even minor operational disruptions or delays in client payments within its project-based business model.
The extreme disparity between revenue scale and cash reserves indicates that the company may be operating with a dangerously thin margin for error. Investors should monitor whether this liquidity profile necessitates dilutive financing or compromises the firm's ability to procure essential components for ongoing integration projects.
Based on the company's reported figures, the lack of meaningful cash accumulation over time suggests a deteriorating balance sheet trajectory that is increasingly unable to support the firm's $36.5 million revenue base, signaling potential long-term sustainability risks for the business model in its current configuration.
The absence of historical growth and the inability to build a cash reserve suggest that the company is struggling to convert its project-based revenue into tangible balance sheet strength. This trajectory appears to reflect a business model that is structurally constrained by its reliance on low-margin, high-touch integration services.
According to recent SEC filings, the significant disconnect between reported revenue and available cash reserves warrants further investigation into the company's revenue recognition practices, as it appears that a substantial portion of earnings may be tied up in unbilled contract assets or long-term receivables.
This discrepancy suggests that the headline revenue figures may not accurately reflect the company's actual cash-generating capacity. Analysts should be cautious, as this pattern often indicates that the firm is effectively acting as a financing vehicle for its clients, which significantly elevates the risk of future write-downs.
While the company reports a negligible debt-to-equity ratio of 0.23%, this low leverage appears to be a necessity-driven outcome of limited access to capital markets rather than a strategic choice, as the firm lacks the cash flow durability to support a more robust capital structure.
The reliance on minimal debt may prevent immediate insolvency, but it also highlights the company's inability to leverage its balance sheet for growth or strategic investment. This lack of financial flexibility appears to leave the firm highly vulnerable to any downturn in the electronics manufacturing sector.
Quick answers to the most common questions about buying LHSW stock.
As of 2025, Lianhe Sowell International Group Ltd Ordinary Shares (LHSW) had total assets of $30.7M including $23.1M in current assets.
Lianhe Sowell International Group Ltd Ordinary Shares (LHSW) carries total debt of $2.6M, offset by $0.1M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Lianhe Sowell International Group Ltd Ordinary Shares (LHSW) has total shareholders' equity (book value) of $11.6M ($3.73 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Lianhe Sowell International Group Ltd Ordinary Shares (LHSW) reported a current ratio of 1.24x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.