A conservative capital structure is evidenced by a 23.57% debt-to-equity ratio, providing a stable buffer against the high fixed-cost environment of Hong Kong.
| Metric | Mar'25 | Mar'24 | Mar'23 |
|---|
| Total Current Assets | 3.37M | 3.67M | 4.12M |
| Cash & Short-Term Investments | 2.76M | 2.1M | 1.93M |
| Cash Only | 816.77K | 2.1M | 1.93M |
| Short-Term Investments | 1.94M | 0 | 0 |
| Accounts Receivable | 579.09K | 1.54M | 2.12M |
| Days Sales Outstanding | 33.97 | 93.18 | 219.61 |
| Inventory | 26.8K | 28.15K | 66.33K |
| Days Inventory Outstanding | 4.79 | 4.89 | 11.89 |
| Other Current Assets | 0 | 0 | 0 |
| Total Non-Current Assets | 1.99M | 1.21M | 2.26M |
| Property, Plant & Equipment | 1.21M | 921.86K | 1.8M |
| Fixed Asset Turnover | 5.14x | 6.53x | 1.96x |
| Goodwill | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 |
| Long-Term Investments | 0 | 0 | 0 |
| Other Non-Current Assets | 700.64K | 81.44K | 193.75K |
| Total Assets | 5.36M | 4.88M | 6.38M |
| Asset Turnover | 1.16x | 1.23x | 0.55x |
| Asset Growth % | 9.71% | -23.53% | - |
| Total Current Liabilities | 4.95M | 5.88M | 7.17M |
| Accounts Payable | 3.48K | 0 | 1.57K |
| Days Payables Outstanding | 0.62 | - | 0.28 |
| Short-Term Debt | 314.23K | 442.61K | 589.66K |
| Deferred Revenue (Current) | 3.46M | 4.5M | 5.6M |
| Other Current Liabilities | 0 | 0 | 0 |
| Current Ratio | 0.68x | 0.62x | 0.57x |
| Quick Ratio | 0.68x | 0.62x | 0.57x |
| Cash Conversion Cycle | 38.14 | - | 231.21 |
| Total Non-Current Liabilities | 358.03K | 148.25K | 484.26K |
| Long-Term Debt | 0 | 0 | 0 |
| Capital Lease Obligations | 358.03K | 148.25K | 484.26K |
| Deferred Tax Liabilities | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 |
| Total Liabilities | 5.31M | 6.03M | 7.65M |
| Total Debt | 1.16M | 961.38K | 1.81M |
| Net Debt | 343.87K | -1.14M | -119.68K |
| Debt / Equity | 23.57x | - | - |
| Debt / EBITDA | 0.70x | 0.69x | - |
| Net Debt / EBITDA | 0.21x | -0.82x | - |
| Interest Coverage | 66.54x | 38.73x | -25.73x |
| Total Equity | 49.24K | -1.15M | -1.27M |
| Equity Growth % | 104.3% | 9.67% | - |
| Book Value per Share | 0.00 | -0.07 | -0.07 |
| Total Shareholders' Equity | 49.24K | -1.08M | -1.16M |
| Common Stock | 1.53K | 1.53K | 1.53K |
| Retained Earnings | 119.44K | -1.08M | -1.16M |
| Treasury Stock | 0 | 0 | 0 |
| Accumulated OCI | -3.57K | 205 | 3.92K |
| Minority Interest | 0 | -66.63K | -110.21K |
Demographic and geographic concentration
As indicated by the company's reported financial position, MCTA maintains a stable balance sheet trajectory, though the lack of significant asset growth suggests that the firm is currently prioritizing capital preservation over aggressive expansion within its highly localized Causeway Bay wellness and postpartum service market.
The company's financial stability appears to be anchored by its conservative leverage profile, which provides a buffer against the inherent volatility of the Hong Kong wellness sector. However, the absence of meaningful asset accumulation may imply that management is struggling to identify high-return reinvestment opportunities that would justify a more aggressive growth strategy.
Based on the reported debt-to-equity ratio of 23.57%, MCTA maintains a conservative leverage profile that suggests limited exposure to interest rate volatility, providing the firm with necessary financial flexibility to navigate the high fixed-cost environment of the Hong Kong medical and wellness services industry.
This modest reliance on debt indicates that the company is not overly dependent on external financing to sustain its current operations. Investors should monitor whether this low leverage is a strategic choice to mitigate risk or a reflection of limited access to capital markets for a micro-cap entity.
According to the company's reported figures, MCTA holds a cash reserve of $816,771, which serves as a critical liquidity buffer against the high fixed occupancy costs associated with its prime real estate footprint in the competitive Causeway Bay district of Hong Kong.
While this cash position appears sufficient to cover immediate operational requirements, the lack of significant growth in these reserves warrants further investigation into the company's ability to fund future expansion. The liquidity profile suggests a defensive posture, which may be appropriate given the demographic headwinds facing the postpartum care segment.
As reported in industry-standard practices for Hong Kong wellness providers, the balance sheet may be distorted by significant contract liabilities, which represent pre-paid service packages that have not yet been recognized as revenue, potentially masking the true underlying cash flow health of the business.
Analysts should be cautious, as these deferred revenue balances are not indicative of future cash inflows but rather represent an obligation to provide services that have already been paid for. This accounting nuance suggests that headline revenue figures may be decoupled from actual operational performance, necessitating a closer look at the timing of service delivery.
Quick answers to the most common questions about buying MCTA stock.
As of 2024, Charming Medical Limited Class A Ordinary Shares (MCTA) had total assets of $5.4M including $3.4M in current assets.
Charming Medical Limited Class A Ordinary Shares (MCTA) carries total debt of $1.2M, offset by $2.8M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Charming Medical Limited Class A Ordinary Shares (MCTA) has total shareholders' equity (book value) of $0.0M ($0.00 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Charming Medical Limited Class A Ordinary Shares (MCTA) reported a current ratio of 0.68x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.