The company's financial stability appears compromised, with a debt-to-equity ratio of 7.86 and a concerning current ratio of 0.24 as of 2025Q2.
| Total Current Assets | 1.21B | 2.71B | 1.76B | 2.36B | 1.38B | 2.09B | 1.38B | 934.04M |
| Cash & Short-Term Investments | 38.76M | 335.56M | 132.85M | 605.95M | 377.12M | 1.47B | 552.14M | 244.71M |
| Cash Only | 32.62M | 329.4M | 106.35M | 605.45M | 370.62M | 1.44B | 513.62M | 211.69M |
| Short-Term Investments | 6.15M | 6.16M | 500K | 500K | 6.5M | 32.52M | 38.52M | 33.02M |
| Accounts Receivable | 663.2M | 2B | 1.23B | 534.69M | 312.3M | 148.54M | 337.05M | 283M |
| Days Sales Outstanding | 27.35 | 88.04 | 65.64 | 28.06 | 21.07 | 16.22 | 31.48 | 30.09 |
| Inventory | 174.91M | 151.64M | 139.98M | 114.11M | 18.7M | 7.96M | 5.51M | 6.4M |
| Days Inventory Outstanding | 4.95 | 9.14 | 9.72 | 8.24 | 1.71 | 1 | 0.68 | 0.94 |
| Other Current Assets | 335.09M | 217.17M | 257.93M | 815.82M | 563.01M | 411.28M | 436.54M | 359.88M |
| Total Non-Current Assets | 6.77B | 5.38B | 5.09B | 4.38B | 4.37B | 3.63B | 3.38B | 3.59B |
| Property, Plant & Equipment | 2.26B | 2.51B | 2.54B | 2.38B | 2.25B | 1.81B | 2B | 2.27B |
| Fixed Asset Turnover | 6.22x | 3.31x | 2.69x | 2.92x | 2.41x | 1.84x | 1.96x | 1.51x |
| Goodwill | 0 | 389.13M | 484.56M | 539.49M | 600.33M | 150.72M | 78.28M | 63.95M |
| Intangible Assets | 3.2B | 1.14B | 920.7M | 403.67M | 391.04M | 97.61M | 77.64M | 76.28M |
| Long-Term Investments | 414.83M | 87.42M | 81.54M | 53.02M | 53.02M | 500K | 14.04M | 51.98M |
| Other Non-Current Assets | 865.88M | 973.46M | 961.14M | 1.01B | 1.08B | 1.56B | 1.21B | 1.12B |
| Total Assets | 7.98B | 8.09B | 6.85B | 6.75B | 5.75B | 5.71B | 4.76B | 4.52B |
| Asset Turnover | 2.09x | 1.03x | 1.00x | 1.03x | 0.94x | 0.58x | 0.82x | 0.76x |
| Asset Growth % | 52.84% | 18.13% | 1.51% | 17.28% | 0.69% | 20.09% | 5.21% | - |
| Total Current Liabilities | 4.98B | 4.18B | 3.56B | 3.64B | 3.2B | 2.65B | 2.26B | 2.35B |
| Accounts Payable | 1.42B | 1.01B | 137.7M | 207.58M | 230.9M | 67.02M | 122.59M | 141.32M |
| Days Payables Outstanding | 21.26 | 61.16 | 9.56 | 15 | 21.1 | 8.4 | 15.13 | 20.83 |
| Short-Term Debt | 2.04B | 1.11B | 500.42M | 99.17M | 162.25M | 242.28M | 371.57M | 413.74M |
| Deferred Revenue (Current) | 1.37B | 463.19M | 512.05M | 0 | 722.7M | 633.73M | 0 | 0 |
| Other Current Liabilities | 1.09B | 414.7M | 370.21M | 1.18B | 459.54M | 162.13M | 616.53M | 648.78M |
| Current Ratio | 0.24x | 0.65x | 0.49x | 0.65x | 0.43x | 0.79x | 0.61x | 0.40x |
| Quick Ratio | 0.21x | 0.61x | 0.45x | 0.62x | 0.43x | 0.78x | 0.61x | 0.39x |
| Cash Conversion Cycle | 11.03 | 36.02 | 65.8 | 21.31 | 1.68 | 8.82 | 17.03 | 10.2 |
| Total Non-Current Liabilities | 2.51B | 2.72B | 3.07B | 3.16B | 2.76B | 2.57B | 1.89B | 2.29B |
| Long-Term Debt | 719.46M | 764.2M | 1.05B | 1.15B | 746.59M | 668.38M | 150.53M | 342.77M |
| Capital Lease Obligations | 5B | 1.29B | 1.33B | 1.21B | 1.13B | 992.89M | 1.14B | 1.32B |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 615.04M | 632.51M | 616.07M | 802.36M | 889.61M | 908.35M | 607.39M | 621.8M |
| Total Liabilities | 7.49B | 6.9B | 6.63B | 6.81B | 5.96B | 5.22B | 4.16B | 4.64B |
| Total Debt | 3.91B | 3.96B | 3.65B | 3.23B | 2.79B | 2.56B | 2.36B | 2.85B |
| Net Debt | 3.88B | 3.63B | 3.54B | 2.63B | 2.42B | 1.12B | 1.85B | 2.64B |
| Debt / Equity | 7.86x | 3.33x | 16.90x | - | - | 5.21x | 3.94x | - |
| Debt / EBITDA | -17.20x | 14.55x | - | 11.50x | - | - | 29.34x | 24.24x |
| Net Debt / EBITDA | -17.06x | 13.34x | - | 9.34x | - | - | 22.97x | 22.44x |
| Interest Coverage | -8.48x | 1.96x | 1.56x | 19.34x | -33.68x | -46.35x | 5.81x | 7.36x |
| Total Equity | 497.48M | 1.19B | 215.96M | -59.38M | -208.34M | 491.26M | 600.06M | -117.56M |
| Equity Growth % | 1162.48% | 450.13% | 463.71% | 71.5% | -142.41% | -18.13% | 610.45% | - |
| Book Value per Share | 62.96 | 203.03 | 41.80 | -10.85 | -42.72 | 122.06 | 140.45 | -24.90 |
| Total Shareholders' Equity | 442.34M | 933.27M | 210.88M | -59.38M | -208.34M | 491.26M | 600.06M | -117.56M |
| Common Stock | 352.13M | 352.62M | 20M | 1.22B | 1.22B | 1.18B | 595.1M | 245.1M |
| Retained Earnings | -460.79M | 229.04M | 80.28M | -2.55B | -2.69B | -1.7B | -705.31M | -722.64M |
| Treasury Stock | -3M | -3M | -3M | -3M | -3M | -3M | -3M | -3M |
| Accumulated OCI | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -278K |
| Minority Interest | 55.14M | 254.79M | 5.08M | 0 | 0 | 0 | 0 | 0 |
Liquidity and Solvency Strain
As reported in recent financial statements, MEDIROM's equity base has experienced extreme volatility, swinging from a negative $363.2 million in 2024Q2 to a positive $442.3 million in 2025Q2, which suggests a precarious balance sheet trajectory driven by inconsistent earnings and frequent capital structure adjustments.
The erratic movement in equity highlights a lack of stable retained earnings, which have remained deeply negative for several periods. This instability suggests that the company's business model is currently unable to build a sustainable capital base, leaving the firm highly sensitive to operational shocks.
Based on the most recent quarterly data, MEDIROM's current ratio has plummeted to 0.24, indicating that the company's short-term assets are insufficient to cover its immediate liabilities, a trend that warrants close monitoring by investors concerned about the firm's ability to meet near-term obligations.
A current ratio well below 1.0 suggests that the company is operating with a significant liquidity deficit. This reliance on external financing or rapid cash turnover to fund daily operations may limit management's ability to pivot or invest in growth initiatives during periods of market stress.
According to the latest balance sheet, goodwill accounts for $3.2 billion of the company's $8.0 billion in total assets, representing a significant portion of the asset base that may be subject to impairment risk if the digital healthcare pivot fails to generate expected returns.
The high concentration of intangible assets relative to tangible property, plant, and equipment suggests that the company's valuation is heavily dependent on the perceived future value of acquisitions. Investors should consider the risk that these assets may not provide the necessary cash flow support if the underlying business segments underperform.
As indicated by the reported figures, the debt-to-equity ratio reached 7.86 in 2025Q2, a sharp increase from 3.33 in 2024Q4, which suggests that the company is increasingly relying on debt financing to sustain its operations amidst ongoing negative profitability and cash burn.
The rapid escalation in leverage indicates that the company's capital structure is becoming increasingly strained. This reliance on debt, combined with a lack of consistent operating income, may increase the cost of capital and limit the company's strategic options in a rising interest rate environment.
Based on financial disclosures, the company carries $416.8 million in deferred revenue, which serves as a critical indicator of future service obligations that may mask the true cash-generating capacity of the business if these contracts are not converted into profitable, long-term customer relationships.
While deferred revenue provides a glimpse into future performance, it also represents a liability that must be serviced through ongoing operational costs. If the cost to fulfill these obligations exceeds the revenue recognized, the company may face further margin compression, complicating its path to sustainable profitability.
Quick answers to the most common questions about buying MRM stock.
As of 2024, MEDIROM Healthcare Technologies Inc. (MRM) had total assets of $8.09B including $2.71B in current assets.
MEDIROM Healthcare Technologies Inc. (MRM) carries total debt of $3.96B, offset by $335.6M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
MEDIROM Healthcare Technologies Inc. (MRM) has total shareholders' equity (book value) of $933.3M ($203.03 book value per share). Book value represents the net worth of the company belonging to common stock holders.
MEDIROM Healthcare Technologies Inc. (MRM) reported a current ratio of 0.65x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.