Management prioritizes capital preservation with a conservative 0.43 debt-to-equity ratio, which effectively mitigates exposure to interest rate volatility.
| Metric | Sep'24 | Sep'23 | Sep'22 |
|---|
| Total Current Assets | 2.73M | 2.22M | 2.29M |
| Cash & Short-Term Investments | 371.92K | 619.57K | 941.53K |
| Cash Only | 371.92K | 619.57K | 941.53K |
| Short-Term Investments | 0 | 0 | 0 |
| Accounts Receivable | 2.34M | 1.57M | 1.13M |
| Days Sales Outstanding | 256.42 | 176.55 | 118.09 |
| Inventory | 0 | 0 | 0 |
| Days Inventory Outstanding | - | - | - |
| Other Current Assets | 17.96K | 32.51K | 221.94K |
| Total Non-Current Assets | 701.39K | 43.28K | 84.59K |
| Property, Plant & Equipment | 110.66K | 32.3K | 75.19K |
| Fixed Asset Turnover | 30.06x | 100.54x | 46.44x |
| Goodwill | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 |
| Long-Term Investments | 0 | 0 | 0 |
| Other Non-Current Assets | 557.18K | 0 | 0 |
| Total Assets | 3.43M | 2.27M | 2.38M |
| Asset Turnover | 0.97x | 1.43x | 1.47x |
| Asset Growth % | 51.27% | -4.69% | - |
| Total Current Liabilities | 1.59M | 834.43K | 1.35M |
| Accounts Payable | 21.36K | 78.06K | 380.24K |
| Days Payables Outstanding | 5.09 | 14.44 | 54.73 |
| Short-Term Debt | 71.31K | 109.08K | 272.77K |
| Deferred Revenue (Current) | 22K | 60.26K | 228.44K |
| Other Current Liabilities | 37.07K | 18.68K | 17K |
| Current Ratio | 1.71x | 2.66x | 1.70x |
| Quick Ratio | 1.71x | 2.66x | 1.70x |
| Cash Conversion Cycle | - | - | - |
| Total Non-Current Liabilities | 477.6K | 479.41K | 613.91K |
| Long-Term Debt | 411.9K | 479.41K | 587.07K |
| Capital Lease Obligations | 65.7K | 0 | 26.84K |
| Deferred Tax Liabilities | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 |
| Total Liabilities | 2.07M | 1.31M | 1.96M |
| Total Debt | 585.36K | 615.4K | 925.32K |
| Net Debt | 213.44K | -4.17K | -16.21K |
| Debt / Equity | 0.43x | 0.65x | 2.23x |
| Debt / EBITDA | 1.00x | 1.03x | 2.91x |
| Net Debt / EBITDA | 0.36x | -0.01x | -0.05x |
| Interest Coverage | 27.76x | 25.94x | 13.50x |
| Total Equity | 1.36M | 952.51K | 415.18K |
| Equity Growth % | 42.57% | 129.42% | - |
| Book Value per Share | - | 0.07 | 0.03 |
| Total Shareholders' Equity | 1.36M | 952.51K | 415.18K |
| Common Stock | 10 | 10 | 10 |
| Retained Earnings | 1.35M | 946.22K | 409.66K |
| Treasury Stock | 0 | 0 | 0 |
| Accumulated OCI | 10.25K | 6.28K | 5.5K |
| Minority Interest | 0 | 0 | 0 |
Limited absolute liquidity buffer
According to the latest financial disclosures, MGRT maintains a conservative capital structure with a debt-to-equity ratio of 0.43, suggesting that the company prioritizes balance sheet stability over the aggressive reinvestment required to accelerate its 2.42% year-over-year revenue growth in the competitive Hong Kong enterprise market.
The company's trajectory appears to be one of defensive consolidation rather than expansion, as management avoids significant leverage to navigate regional economic uncertainty. This approach suggests a focus on maintaining existing service contracts, though it may limit the firm's capacity to scale its IoT integration capabilities.
As reported in financial statements, MGRT operates with a modest debt-to-equity ratio of 0.43, which effectively insulates the firm from interest rate volatility and suggests that the company's current IoT service model is not reliant on external debt financing to sustain its ongoing operational requirements.
The minimal reliance on debt indicates that the company is not currently facing refinancing risks, which is a positive signal for a micro-cap entity. However, investors should monitor whether this low leverage is a strategic choice to avoid interest expenses or a reflection of limited access to capital markets.
Based on reported figures, MGRT holds cash and equivalents of $371,918, a relatively thin liquidity buffer that may restrict the company's ability to bid on larger, capital-intensive IoT infrastructure projects or absorb unexpected shocks to its working capital cycle within the Hong Kong enterprise sector.
While the company maintains a disciplined cost structure, the absolute level of cash is low, which warrants further investigation into the timing of receivables collection. A lack of significant liquid assets could force management to prioritize short-term cash flow over long-term strategic investments in proprietary tracking protocols.
As indicated by the nature of long-term IoT integration projects, the company's balance sheet may be distorted by the use of percentage-of-completion accounting, which potentially inflates reported assets with unbilled receivables that have not yet been converted into actual cash flow for the business.
Investors should be cautious of the potential divergence between accounting revenue and cash realization, as milestone-based billing can create significant volatility in liquidity. This accounting nuance suggests that the headline balance sheet strength may be more sensitive to project execution delays than the raw numbers imply.
Quick answers to the most common questions about buying MGRT stock.
As of 2024, Mega Fortune Company Limited (MGRT) had total assets of $3.4M including $2.7M in current assets.
Mega Fortune Company Limited (MGRT) carries total debt of $0.6M, offset by $0.4M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Mega Fortune Company Limited (MGRT) has total shareholders' equity (book value) of $1.4M. Book value represents the net worth of the company belonging to common stock holders.
Mega Fortune Company Limited (MGRT) reported a current ratio of 1.71x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.