A conservative capital structure is evidenced by a 0.59% debt-to-equity ratio, though the $176k cash position provides minimal liquidity for strategic pivots.
| Metric | Oct'24 | Oct'23 | Oct'22 |
|---|
| Total Current Assets | 16.45M | 11.95M | 12.38M |
| Cash & Short-Term Investments | 176.24K | 132.15K | 319.96K |
| Cash Only | 176.24K | 132.15K | 319.96K |
| Short-Term Investments | 0 | 0 | 0 |
| Accounts Receivable | 6.41M | 6.5M | 8.4M |
| Days Sales Outstanding | 109.08 | 90.41 | 108.89 |
| Inventory | 2.63M | 2.21M | 2.26M |
| Days Inventory Outstanding | 55.04 | 36.51 | 35.1 |
| Other Current Assets | 0 | 19.96K | 0 |
| Total Non-Current Assets | 1.22M | 822.81K | 2.01M |
| Property, Plant & Equipment | 205.57K | 346.71K | 482.36K |
| Fixed Asset Turnover | 104.27x | 75.74x | 58.38x |
| Goodwill | 0 | 0 | 0 |
| Intangible Assets | 7.43K | 8.39K | 9.4K |
| Long-Term Investments | 0 | 0 | 0 |
| Other Non-Current Assets | 986.21K | 463.02K | 1.52M |
| Total Assets | 17.67M | 12.77M | 14.39M |
| Asset Turnover | 1.21x | 2.06x | 1.96x |
| Asset Growth % | 38.43% | -11.28% | - |
| Total Current Liabilities | 7.35M | 5.99M | 8.74M |
| Accounts Payable | 2.13M | 1.03M | 5.22M |
| Days Payables Outstanding | 44.47 | 17 | 81.05 |
| Short-Term Debt | 2.79M | 1.38M | 1.18M |
| Deferred Revenue (Current) | 512.86K | 822.12K | 660.93K |
| Other Current Liabilities | 0 | 0 | 0 |
| Current Ratio | 2.24x | 1.99x | 1.42x |
| Quick Ratio | 1.88x | 1.63x | 1.16x |
| Cash Conversion Cycle | 119.66 | 109.92 | 62.93 |
| Total Non-Current Liabilities | 2.06M | 1.22M | 2.03M |
| Long-Term Debt | 2.06M | 1.14M | 1.65M |
| Capital Lease Obligations | 0 | 77.92K | 371.15K |
| Deferred Tax Liabilities | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 |
| Total Liabilities | 9.41M | 7.21M | 10.77M |
| Total Debt | 4.89M | 2.89M | 3.38M |
| Net Debt | 4.72M | 2.76M | 3.06M |
| Debt / Equity | 0.59x | 0.52x | 0.93x |
| Debt / EBITDA | 2.03x | 1.10x | 1.01x |
| Net Debt / EBITDA | 1.95x | 1.05x | 0.91x |
| Interest Coverage | 14.56x | 34.62x | 39.23x |
| Total Equity | 8.27M | 5.56M | 3.62M |
| Equity Growth % | 48.64% | 53.53% | - |
| Book Value per Share | 0.49 | 0.33 | 0.21 |
| Total Shareholders' Equity | 7.95M | 5.32M | 3.45M |
| Common Stock | 150K | 150K | 150K |
| Retained Earnings | 5.81M | 4.18M | 2.46M |
| Treasury Stock | 0 | 0 | 0 |
| Accumulated OCI | 283.85K | 57.3K | -90.07K |
| Minority Interest | 312.48K | 244.99K | 175.98K |
Geopolitical and tariff exposure
According to the provided financial data, MAMK maintains a conservative capital structure with a debt-to-equity ratio of 0.59%, suggesting that the company relies almost exclusively on equity financing rather than debt to fund its customized textile manufacturing operations and proprietary software development initiatives.
The negligible debt load implies that the company faces minimal interest rate risk and is not burdened by mandatory debt service payments during this period of revenue contraction. This lack of leverage appears to be a strategic choice, potentially reflecting limited access to credit markets or a management preference for a debt-free balance sheet.
As reported in financial statements, the company holds a cash position of $176k, which, when viewed against the backdrop of its operational scale, suggests a limited liquidity buffer to navigate the current 18.38% year-over-year revenue decline or to fund necessary capital expenditures.
Investors should monitor whether this cash level is sufficient to cover short-term liabilities and ongoing marketing costs required to stabilize the business. The modest cash reserves may indicate that the firm is operating with a very tight margin of safety, leaving little room for unexpected operational shocks.
Based on the company's reported figures, the balance sheet trajectory appears to be in a state of stagnation, as the lack of significant capital accumulation or debt expansion suggests that the firm is currently struggling to generate the surplus capital needed to reinvest in its core business.
The absence of growth in the balance sheet base aligns with the observed revenue contraction, suggesting that the company is currently in a defensive posture. This trend warrants further investigation into whether the firm is intentionally shrinking its asset base to preserve cash or if it is losing its competitive edge.
As indicated by the nature of the business, the most significant balance sheet risk involves the potential for inventory write-downs, as the company's reliance on customized textile products means that unsold inventory may hold little to no salvage value if consumer demand shifts unexpectedly.
While the headline debt metrics appear healthy, the quality of the underlying assets remains a concern given the thin 18.52% gross margins. If the company is forced to carry significant quantities of 'blank' textiles, any obsolescence in product design could lead to rapid impairment of current assets.
Quick answers to the most common questions about buying MAMK stock.
As of 2024, MaxsMaking Inc. Class A Ordinary Shares (MAMK) had total assets of $17.7M including $16.5M in current assets.
MaxsMaking Inc. Class A Ordinary Shares (MAMK) carries total debt of $4.9M, offset by $0.2M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
MaxsMaking Inc. Class A Ordinary Shares (MAMK) has total shareholders' equity (book value) of $8.0M ($0.49 book value per share). Book value represents the net worth of the company belonging to common stock holders.
MaxsMaking Inc. Class A Ordinary Shares (MAMK) reported a current ratio of 2.24x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.