Despite significant operational volatility, the firm maintains a conservative financial profile characterized by a debt-to-equity ratio of 0.34%.
| Metric | Jun'24 | Jun'23 | Jun'22 |
|---|
| Total Current Assets | 29.42M | 29.97M | 29.56M |
| Cash & Short-Term Investments | 3.49M | 4.55M | 824.28K |
| Cash Only | 3.49M | 4.55M | 824.28K |
| Short-Term Investments | 0 | 0 | 0 |
| Accounts Receivable | 7.26M | 8.9M | 10.34M |
| Days Sales Outstanding | 118.12 | 94.82 | 116.26 |
| Inventory | 9.79M | 13.75M | 16.6M |
| Days Inventory Outstanding | 176.91 | 168.97 | 221.96 |
| Other Current Assets | 8.38M | 2.43M | 317.33K |
| Total Non-Current Assets | 4.3M | 4.96M | 5.46M |
| Property, Plant & Equipment | 4.3M | 4.96M | 5.46M |
| Fixed Asset Turnover | 5.22x | 6.91x | 5.94x |
| Goodwill | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 |
| Long-Term Investments | 0 | 0 | 0 |
| Other Non-Current Assets | 0 | 0 | 0 |
| Total Assets | 33.71M | 34.93M | 35.02M |
| Asset Turnover | 0.67x | 0.98x | 0.93x |
| Asset Growth % | -3.48% | -0.26% | - |
| Total Current Liabilities | 13.77M | 11.54M | 7.34M |
| Accounts Payable | 969.11K | 1.22M | 3.55M |
| Days Payables Outstanding | 17.52 | 15.04 | 47.42 |
| Short-Term Debt | 1.89M | 5.13M | 0 |
| Deferred Revenue (Current) | 0 | 0 | 0 |
| Other Current Liabilities | 5.68M | 2.31M | 250K |
| Current Ratio | 2.14x | 2.60x | 4.03x |
| Quick Ratio | 1.43x | 1.40x | 1.77x |
| Cash Conversion Cycle | 277.51 | 248.76 | 290.79 |
| Total Non-Current Liabilities | 2.76M | 4.2M | 8.67M |
| Long-Term Debt | 1.65M | 1.87M | 5.73M |
| Capital Lease Obligations | 1.1M | 2.33M | 2.94M |
| Deferred Tax Liabilities | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 |
| Total Liabilities | 16.53M | 15.74M | 16.02M |
| Total Debt | 5.87M | 10.54M | 9.57M |
| Net Debt | 2.38M | 5.98M | 8.75M |
| Debt / Equity | 0.34x | 0.55x | 0.50x |
| Debt / EBITDA | - | 6.30x | 4.90x |
| Net Debt / EBITDA | - | 3.58x | 4.48x |
| Interest Coverage | -3.34x | 1.30x | 2.42x |
| Total Equity | 17.18M | 19.18M | 19M |
| Equity Growth % | -10.43% | 0.96% | - |
| Book Value per Share | 319.41 | 356.60 | 353.22 |
| Total Shareholders' Equity | 17.18M | 19.18M | 19M |
| Common Stock | 482 | 482 | 482 |
| Retained Earnings | 4.8M | 6.79M | 6.61M |
| Treasury Stock | 0 | 0 | 0 |
| Accumulated OCI | 12.39M | 12.39M | 12.39M |
| Minority Interest | 0 | 0 | 0 |
Severe Revenue Cyclicality
According to reported financial figures, LNKS maintains a conservative debt-to-equity ratio of 0.34%, which suggests that despite a 34.55% revenue decline, the company has avoided aggressive leverage, potentially preserving its balance sheet integrity during this period of significant operational volatility and negative net margins.
The company's low leverage profile appears to be a strategic necessity given the thin 9.96% gross margins that offer little room for error. While the balance sheet remains structurally sound, the lack of growth suggests that capital is currently being preserved rather than deployed for productive expansion.
Based on the company's reported financial statements, the debt-to-equity ratio of 0.34% indicates a cautious approach to external financing, which may provide a necessary buffer against the current operating losses and the inherent cyclicality of the metal fabrication and assembly industry in the ASEAN region.
This low debt burden suggests that the company is not currently facing immediate solvency risks despite the recent breach of its break-even point. Investors should monitor whether this conservative stance is maintained if the current revenue contraction persists and necessitates further liquidity to fund ongoing operations.
As reported in financial filings, the company holds a cash reserve of $3.49 million, which serves as a primary liquidity buffer against the recent 34.55% revenue decline and the associated negative operating margins that currently threaten the firm's ability to cover its fixed overhead costs.
While the cash position appears adequate for short-term survival, the absence of consistent cash flow generation warrants caution regarding the long-term sustainability of this liquidity. The company's ability to navigate this downturn will likely depend on its success in managing working capital cycles amidst shrinking production volumes.
Based on the company's operational history, the reliance on high-volume, low-margin wire harness production suggests that inventory valuation may be a significant distortion, as fluctuations in copper prices could mask underlying operational inefficiencies or create phantom losses that do not reflect the core business performance.
The lack of transparency regarding inventory turnover and potential obsolescence of specialized components poses a risk to the reported asset base. Analysts should investigate whether the current asset mix is truly liquid or if it is heavily weighted toward slow-moving inventory that may require future write-downs.
Quick answers to the most common questions about buying LNKS stock.
As of 2024, Linkers Industries Limited (LNKS) had total assets of $33.7M including $29.4M in current assets.
Linkers Industries Limited (LNKS) carries total debt of $5.9M, offset by $3.5M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Linkers Industries Limited (LNKS) has total shareholders' equity (book value) of $17.2M ($319.41 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Linkers Industries Limited (LNKS) reported a current ratio of 2.14x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.