The balance sheet reflects a critical liquidity crisis, evidenced by a current ratio of 0.01 and a total absence of property, plant, and equipment (PPE) to support operations.
| Total Current Assets | 20.38K | 3.12M | 2.74M | 1.67M | 2.5M |
| Cash & Short-Term Investments | 19.55K | 542.59K | 924.43K | 417.01K | 493.44K |
| Cash Only | 19.55K | 542.59K | 924.43K | 417.01K | 493.44K |
| Short-Term Investments | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 0 | 2.21M | 1.38M | 962.55K | 847.64K |
| Days Sales Outstanding | - | 403.91 | 137.59 | 111.41 | 94.55 |
| Inventory | 0 | 291.03K | 362.96K | 231.75K | 571.32K |
| Days Inventory Outstanding | - | 57.94 | 44.2 | 39.63 | 75.92 |
| Other Current Assets | 0 | 51.35K | 55.08K | 0 | 0 |
| Total Non-Current Assets | 21.87M | 5.77M | 6.43M | 6.47M | 7.37M |
| Property, Plant & Equipment | 0 | 5.15M | 3.86M | 3.44M | 3.79M |
| Fixed Asset Turnover | 0.00x | 0.39x | 0.95x | 0.92x | 0.86x |
| Goodwill | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 0 | 523.85K | 299.8K | 281.66K | 313.85K |
| Long-Term Investments | 21.87M | 60.91K | 0 | 0 | 0 |
| Other Non-Current Assets | 0 | 34.62K | 2.27M | 2.75M | 3.27M |
| Total Assets | 21.89M | 8.89M | 9.17M | 8.13M | 9.87M |
| Asset Turnover | 0.00x | 0.22x | 0.40x | 0.39x | 0.33x |
| Asset Growth % | 0% | -3.01% | 12.76% | -17.61% | - |
| Total Current Liabilities | 1.86M | 10.95M | 6.07M | 4.03M | 6.17M |
| Accounts Payable | 0 | 409.12K | 304.67K | 211.05K | 329.9K |
| Days Payables Outstanding | - | 81.45 | 37.11 | 36.09 | 43.84 |
| Short-Term Debt | 0 | 3.76M | 3.32M | 1.64M | 941.53K |
| Deferred Revenue (Current) | 304.49K | 262.22K | 304.49K | 189.19K | 134.33K |
| Other Current Liabilities | 1.8M | 74.75K | 69.38K | 79.07K | 49.39K |
| Current Ratio | 0.01x | 0.29x | 0.45x | 0.41x | 0.41x |
| Quick Ratio | 0.01x | 0.26x | 0.39x | 0.36x | 0.31x |
| Cash Conversion Cycle | - | 380.39 | 144.69 | 114.95 | 126.63 |
| Total Non-Current Liabilities | 1.72M | 3.12M | 2.77M | 2.57M | 3.72M |
| Long-Term Debt | 0 | 2.81M | 2.43M | 2.28M | 3.14M |
| Capital Lease Obligations | 259.13K | 270.41K | 259.13K | 181.66K | 457.54K |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 36.35K | 78.63K | 108.76K | 118.45K |
| Total Liabilities | 3.58M | 14.07M | 8.84M | 6.6M | 9.89M |
| Total Debt | 0 | 8.15M | 6.38M | 4.57M | 4.9M |
| Net Debt | -19.55K | 7.61M | 5.46M | 4.16M | 4.41M |
| Debt / Equity | 0.00x | - | 19.07x | 2.98x | - |
| Debt / EBITDA | -0.00x | - | - | - | - |
| Net Debt / EBITDA | 0.51x | - | - | - | - |
| Interest Coverage | - | -7.10x | -7.53x | -2.31x | -4.44x |
| Total Equity | 18.31M | -5.17M | 334.59K | 1.53M | -15.41K |
| Equity Growth % | 0% | -1646.36% | -78.19% | 10058.33% | - |
| Book Value per Share | 3.00 | -0.30 | 0.02 | 0.09 | -0.00 |
| Total Shareholders' Equity | 18.31M | -4.21M | 595.84K | 752.48K | -15.41K |
| Common Stock | 21.77M | 1.86K | 1.39K | 8.84M | 7.75M |
| Retained Earnings | -3.46M | -13.73M | -11.21M | -9.62M | -8.37M |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | 0 | 557.09K | 344.87K | 610.98K | 581.16K |
| Minority Interest | 0 | -964.63K | -261.25K | 781.8K | 0 |
Imminent liquidity depletion risk
As reported in recent financial filings, MKDW's total assets shifted from $9.2 million in 2023Q4 to $21.9 million in 2024Q1, yet this expansion masks a deteriorating underlying quality as the company's cash reserves plummeted to a nominal $19.5 thousand during the same period.
The sudden increase in total assets appears disconnected from operational reality, suggesting potential accounting adjustments or non-cash asset revaluations rather than organic growth. This trajectory indicates a business model struggling to maintain a viable asset base while its core liquidity evaporates.
Based on the 2024Q1 balance sheet, the company's current ratio has collapsed to a precarious 0.01, signaling that MKDW lacks the liquid assets necessary to cover its immediate short-term obligations as reported in recent regulatory disclosures.
A current ratio of 0.01 is indicative of extreme financial distress, suggesting that the company is effectively unable to meet its current liabilities without immediate external capital intervention. Investors should monitor this metric closely, as it implies a high probability of insolvency if the current burn rate persists.
According to the 2023Q4 financial statements, the company carried $6.4 million in total debt against a meager $595.8 thousand in equity, resulting in a highly leveraged debt-to-equity ratio of 19.07 that highlights the company's reliance on external financing to sustain its operations.
The transition from significant debt in 2023Q4 to a reported zero debt position in 2024Q1 warrants further investigation, as it may suggest a debt-for-equity swap or a restructuring event that has fundamentally altered the company's capital stack. Such rapid shifts in leverage often precede significant volatility in shareholder value.
As noted in the 2024Q1 balance sheet, the complete absence of property, plant, and equipment (PPE) suggests that the company has effectively liquidated its manufacturing base, a trend that contradicts its stated identity as an automotive component manufacturer.
The disappearance of PPE from the balance sheet implies that the company may have transitioned to an asset-light model or, more concerningly, that it has divested its core production capabilities. This shift raises significant questions regarding the company's ability to fulfill future OEM contracts or maintain its competitive position in the automotive supply chain.
Quick answers to the most common questions about buying MKDW stock.
As of 2024, MKDWELL Tech Inc. (MKDW) had total assets of $8.9M including $3.1M in current assets.
MKDWELL Tech Inc. (MKDW) carries total debt of $8.1M, offset by $0.5M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
MKDWELL Tech Inc. (MKDW) has total shareholders' equity (book value) of $-4.2M ($-0.30 book value per share). Book value represents the net worth of the company belonging to common stock holders.
MKDWELL Tech Inc. (MKDW) reported a current ratio of 0.29x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.