MGN maintains a highly conservative capital structure with a 0.01% debt-to-equity ratio, which may indicate reliance on parent-company funding rather than independent market financing.
| Metric | Dec'23 | Dec'22 | Dec'21 |
|---|
| Total Current Assets | 51.46M | 47.85M | 31.02M |
| Cash & Short-Term Investments | 8.55M | 21.48M | 11.44M |
| Cash Only | 4.12M | 7.2M | 1.74M |
| Short-Term Investments | 4.43M | 14.27M | 9.7M |
| Accounts Receivable | 20.09M | 17.33M | 11.55M |
| Days Sales Outstanding | 86.03 | 87.46 | 91.77 |
| Inventory | 0 | 0 | 0 |
| Days Inventory Outstanding | - | - | - |
| Other Current Assets | 12.09K | 0 | 0 |
| Total Non-Current Assets | 3.33M | 934.67K | 17.61K |
| Property, Plant & Equipment | 557.76K | 4.66K | 17.61K |
| Fixed Asset Turnover | 152.82x | 15507.19x | 2609.06x |
| Goodwill | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 |
| Long-Term Investments | 0 | 0 | 0 |
| Other Non-Current Assets | 0 | 0 | 0 |
| Total Assets | 54.8M | 48.79M | 31.03M |
| Asset Turnover | 1.56x | 1.48x | 1.48x |
| Asset Growth % | 12.32% | 57.2% | - |
| Total Current Liabilities | 24.67M | 27.3M | 17.76M |
| Accounts Payable | 1.75M | 3.64M | 8.59M |
| Days Payables Outstanding | 9.01 | 22.98 | 86.86 |
| Short-Term Debt | 30.63K | 0 | 0 |
| Deferred Revenue (Current) | 2.58M | 4.3M | 499.75K |
| Other Current Liabilities | 0 | 0 | 0 |
| Current Ratio | 2.09x | 1.75x | 1.75x |
| Quick Ratio | 2.09x | 1.75x | 1.75x |
| Cash Conversion Cycle | - | - | - |
| Total Non-Current Liabilities | 357.49K | 0 | 0 |
| Long-Term Debt | 357.49K | 0 | 0 |
| Capital Lease Obligations | 0 | 0 | 0 |
| Deferred Tax Liabilities | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 |
| Total Liabilities | 25.03M | 27.3M | 17.76M |
| Total Debt | 388.11K | 0 | 17.61K |
| Net Debt | -3.73M | -7.2M | -1.72M |
| Debt / Equity | 0.01x | - | 0.00x |
| Debt / EBITDA | 0.04x | - | 0.00x |
| Net Debt / EBITDA | -0.37x | -0.61x | -0.34x |
| Interest Coverage | 6460.27x | 30423.89x | 2790.43x |
| Total Equity | 29.77M | 21.48M | 13.27M |
| Equity Growth % | 38.57% | 61.86% | - |
| Book Value per Share | 1.70 | 1.23 | 0.76 |
| Total Shareholders' Equity | 29.77M | 21.48M | 13.27M |
| Common Stock | 6.26K | 6.26K | 6.26K |
| Retained Earnings | 29.52M | 21.23M | 13.02M |
| Treasury Stock | 0 | 0 | 0 |
| Accumulated OCI | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 |
Related party transaction exposure
According to recent company intelligence, MGN achieved a 17.88% year-over-year revenue growth, reflecting successful penetration into the Malaysian agritech market through its specialized engineering services, though the project-based nature of these developments suggests that top-line durability remains tied to the cyclicality of domestic food security capital expenditures.
The company's expansion appears to be driven by its niche focus on bio-secure infrastructure, which differentiates it from generalist construction peers. Investors should monitor whether this growth trajectory can be sustained without increasing reliance on parent-company capital support.
Based on reported figures, MGN operates with a negligible 0.01% debt-to-equity ratio, which provides significant balance sheet resilience but may also indicate a reliance on parent-company funding or internal capital allocation strategies that could mask the true cost of financing for its large-scale infrastructure projects.
While the lack of external debt suggests a fortress-like position, it may also imply that the company is not utilizing leverage to optimize its return on equity. This warrants further investigation into whether the company is receiving interest-free loans from Star Sprite Limited that are not captured in traditional debt metrics.
As reported in financial statements, the company's $85.2M revenue base relative to its $4.1M cash position suggests a potentially tight working capital cycle, which warrants further investigation into the efficiency of collections from government-linked aquaculture projects and the timing of payments to specialized equipment vendors.
The relatively low cash buffer compared to annual revenue indicates that the company may be highly sensitive to payment delays from its clients. This liquidity profile suggests that any disruption in the project completion schedule could rapidly strain the company's ability to meet its short-term operational obligations.
As noted in industry analysis, the potential for related-party transactions with parent entity Star Sprite Limited creates a risk that reported revenue may not reflect arm's-length market demand, necessitating a closer look at the quality of earnings and the transparency of intercompany service agreements.
The subsidiary structure introduces a layer of opacity regarding capital allocation and potential revenue inflation through internal contracts. Investors should be cautious of the possibility that reported financial strength is partially supported by parent-level strategic priorities rather than independent market success.
Quick answers to the most common questions about buying MGN stock.
As of 2023, Megan Holdings Limited Ordinary Shares (MGN) had total assets of $54.8M including $51.5M in current assets.
Megan Holdings Limited Ordinary Shares (MGN) carries total debt of $0.4M, offset by $8.6M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Megan Holdings Limited Ordinary Shares (MGN) has total shareholders' equity (book value) of $29.8M ($1.70 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Megan Holdings Limited Ordinary Shares (MGN) reported a current ratio of 2.09x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.