MEGL maintains a fortress-like balance sheet with a current ratio of 36.88, though this liquidity is largely comprised of $127.5 million in cash that remains unutilized for growth.
| Total Current Assets | 130.64M | 96.26M | 126.05M | 11.69M | 13.31M | 15.67M |
| Cash & Short-Term Investments | - | - | - | - | - | - |
| Cash Only | - | - | - | - | - | - |
| Short-Term Investments | - | - | - | - | - | - |
| Accounts Receivable | - | - | - | - | - | - |
| Days Sales Outstanding | - | - | - | - | - | - |
| Inventory | - | - | - | - | - | - |
| Days Inventory Outstanding | - | - | - | - | - | - |
| Other Current Assets | -448 | 107.24K | 101.94K | -5.18M | 0 | -2.1M |
| Total Non-Current Assets | 5.5M | 42M | 18.05M | 5.51M | 3.03M | 9.84M |
| Property, Plant & Equipment | 5.5M | 3.35M | 3.55M | 5.51M | 3.03M | 6.37M |
| Fixed Asset Turnover | 2.32x | 4.11x | 3.15x | 3.05x | 6.74x | 4.39x |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 | 0 | 0 | 0 |
| Long-Term Investments | 0 | 38.65M | 14.5M | 0 | 0 | 0 |
| Other Non-Current Assets | - | - | - | - | - | - |
| Total Assets | 136.14M | 138.26M | 144.11M | 25.7M | 16.34M | 25.5M |
| Asset Turnover | 0.09x | 0.10x | 0.08x | 0.65x | 1.25x | 1.10x |
| Asset Growth % | -1.53% | -4.06% | 460.83% | 57.25% | -35.92% | - |
| Total Current Liabilities | 3.54M | 3.99M | 6.03M | 16.54M | 0 | 1.77M |
| Accounts Payable | 0 | 0 | 0 | 0 | 0 | 0 |
| Days Payables Outstanding | - | - | - | - | - | - |
| Short-Term Debt | 0 | 0 | 0 | 0 | 0 | 2.61M |
| Deferred Revenue (Current) | - | - | - | - | - | - |
| Other Current Liabilities | 766 | 0 | 0 | 0 | -9.13M | -7.84M |
| Current Ratio | 36.88x | 24.13x | 20.91x | 0.71x | - | 8.86x |
| Quick Ratio | 36.88x | 24.13x | 20.91x | 0.71x | - | 8.86x |
| Cash Conversion Cycle | - | - | - | - | - | - |
| Total Non-Current Liabilities | 3.06M | 2.91M | 1.75M | 3.65M | 12.41M | 2.4M |
| Long-Term Debt | 0 | 0 | 0 | 0 | 0 | 0 |
| Capital Lease Obligations | - | - | - | - | - | - |
| Deferred Tax Liabilities | - | - | - | - | - | - |
| Other Non-Current Liabilities | - | - | - | - | - | - |
| Total Liabilities | 6.61M | 3.99M | 7.77M | 20.19M | 12.41M | 22.02M |
| Total Debt | 4.27M | 1.75M | 3.65M | 5.46M | 2.39M | 5.01M |
| Net Debt | -123.24M | -90.66M | -118.16M | -6.22M | -5.49M | -10.66M |
| Debt / Equity | 0.03x | 0.01x | 0.03x | 0.99x | 0.61x | 1.44x |
| Debt / EBITDA | - | - | - | 1.14x | 0.33x | 0.33x |
| Net Debt / EBITDA | - | - | - | -1.30x | -0.76x | -0.70x |
| Interest Coverage | -76.25x | -2.47x | -13.92x | 21.06x | - | - |
| Total Equity | 129.54M | 134.27M | 136.33M | 5.51M | 3.93M | 3.48M |
| Equity Growth % | -3.52% | -1.52% | 2374.8% | 40.17% | 12.92% | - |
| Book Value per Share | 25.58 | 26.51 | 7.98 | 0.37 | 0.20 | 0.23 |
| Total Shareholders' Equity | 129.54M | 134.27M | 136.33M | 5.51M | 3.93M | 3.48M |
| Common Stock | 15.83K | 15.83K | 15.83K | 11.7K | 11.7K | 11.7K |
| Retained Earnings | -9.14M | -4.41M | -2.35M | 5.5M | 3.92M | 3.47M |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical Deal Flow Dependence
According to recent balance sheet filings, MEGL's total assets have remained relatively stagnant at $136.1 million, yet the underlying composition has shifted heavily toward cash, which now accounts for nearly 94% of the total asset base as of 2024Q4, signaling a transition toward a cash-heavy holding structure.
The stability in total assets masks a significant contraction in the firm's operational footprint, as the business appears to be retreating from active capital deployment. This trajectory suggests that the company is increasingly functioning as a passive repository for capital rather than an active financial services provider.
Based on the 2024Q4 financial statements, MEGL maintains a current ratio of 36.88, an exceptionally high figure that, while indicating a robust buffer against short-term shocks, highlights the firm's inability to deploy its $127.5 million cash position into productive, revenue-generating activities within the current market environment.
While such high liquidity provides an ironclad defense against insolvency, it also raises questions regarding the opportunity cost of capital. Investors should monitor whether this liquidity remains idle or if management eventually pivots toward a more aggressive, albeit riskier, capital allocation strategy.
As reported in the company's equity disclosures, retained earnings have deteriorated to -$9.1 million by 2024Q4, reflecting a consistent pattern of operational losses that are slowly eroding the firm's equity base despite the massive cash cushion maintained on the balance sheet.
The persistent negative trend in retained earnings indicates that the core business model is currently unable to cover its own operating expenses. This suggests that the equity value is being supported primarily by historical capital injections rather than organic value creation from advisory services.
As evidenced by the 2024Q4 balance sheet, MEGL maintains a negligible debt-to-equity ratio of 0.03, confirming that the firm has avoided external financing, which is a prudent choice given the current lack of profitable growth opportunities in the Hong Kong capital markets.
The absence of meaningful debt suggests that the company is not currently under pressure from creditors, providing management with significant flexibility. However, this lack of leverage also implies that the firm is not utilizing debt to amplify returns, which is consistent with its current defensive and inactive operational posture.
Quick answers to the most common questions about buying MEGL stock.
As of 2024, Magic Empire Global Limited (MEGL) had total assets of $136.1M including $130.6M in current assets.
Magic Empire Global Limited (MEGL) carries total debt of $4.3M. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Magic Empire Global Limited (MEGL) has total shareholders' equity (book value) of $129.5M ($25.58 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Magic Empire Global Limited (MEGL) reported a current ratio of 36.88x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.