The balance sheet appears highly vulnerable, characterized by a minimal cash buffer of $272,895 against $672 million in revenue and potential hidden leverage from trade financing.
| Metric | Jun'24 | Jun'23 | Jun'22 |
|---|
| Total Current Assets | 18.05M | 41.17M | 58.99M |
| Cash & Short-Term Investments | 272.89K | 1.33M | 464.68K |
| Cash Only | 272.89K | 1.33M | 464.68K |
| Short-Term Investments | 0 | 0 | 0 |
| Accounts Receivable | 13.13M | 25.99M | 18.76M |
| Days Sales Outstanding | 7.13 | 17.17 | 13.99 |
| Inventory | 873.72K | 410.44K | 71.68K |
| Days Inventory Outstanding | 0.48 | 0.27 | 0.05 |
| Other Current Assets | 2.14M | 11.65M | 39.26M |
| Total Non-Current Assets | 71.65M | 33.74M | 6.42M |
| Property, Plant & Equipment | 62.67M | 25.15M | 3.99M |
| Fixed Asset Turnover | 10.73x | 21.97x | 122.79x |
| Goodwill | 0 | 0 | 0 |
| Intangible Assets | 6.21M | 6.35M | 20.26K |
| Long-Term Investments | 2.23M | 2.23M | 2.42M |
| Other Non-Current Assets | 538.58K | 0 | 0 |
| Total Assets | 89.7M | 74.91M | 65.41M |
| Asset Turnover | 7.50x | 7.38x | 7.48x |
| Asset Growth % | 19.74% | 14.52% | - |
| Total Current Liabilities | 57.32M | 41.83M | 52.58M |
| Accounts Payable | 1.29M | 11.69M | 8M |
| Days Payables Outstanding | 0.71 | 7.77 | 5.99 |
| Short-Term Debt | 25.79M | 25.09M | 41.75M |
| Deferred Revenue (Current) | 637.54K | 1.59M | 641.07K |
| Other Current Liabilities | 1.38M | 1.38M | 0 |
| Current Ratio | 0.31x | 0.98x | 1.12x |
| Quick Ratio | 0.30x | 0.97x | 1.12x |
| Cash Conversion Cycle | 6.9 | 9.67 | 8.05 |
| Total Non-Current Liabilities | 0 | 0 | 0 |
| Long-Term Debt | 0 | 0 | 0 |
| Capital Lease Obligations | 0 | 0 | 0 |
| Deferred Tax Liabilities | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 |
| Total Liabilities | 57.32M | 41.83M | 52.58M |
| Total Debt | 25.79M | 25.09M | 41.75M |
| Net Debt | 25.52M | 23.76M | 41.28M |
| Debt / Equity | 0.80x | 0.76x | 3.25x |
| Debt / EBITDA | 25.98x | 16.67x | - |
| Net Debt / EBITDA | 25.70x | 15.78x | - |
| Interest Coverage | 7.86x | - | -2.69x |
| Total Equity | 32.38M | 33.08M | 12.83M |
| Equity Growth % | -2.13% | 157.85% | - |
| Book Value per Share | 1.45 | 1.48 | 0.58 |
| Total Shareholders' Equity | -2.85M | 6.88M | 4.42M |
| Common Stock | 2K | 2K | 2K |
| Retained Earnings | -3.38M | -4.64M | -6.66M |
| Treasury Stock | 0 | 0 | 0 |
| Accumulated OCI | -245.5K | -1.49M | -526.39K |
| Minority Interest | 35.23M | 26.2M | 8.41M |
Extreme liquidity and margin sensitivity
Based on reported figures, NPT's balance sheet trajectory appears increasingly precarious as the company scales its $672 million revenue base without a commensurate accumulation of liquid assets, suggesting that the firm's growth is being fueled by high-velocity transactional throughput rather than sustainable capital base expansion.
The company's reliance on rapid inventory turnover to support its 21.74% revenue growth suggests a business model that is highly sensitive to external financing conditions. Investors should monitor whether this expansion is creating genuine equity value or merely increasing the firm's exposure to systemic industrial credit risks.
As reported in financial statements, NPT maintains a cash position of only $272,895 against massive annual revenue, which indicates an exceptionally thin liquidity buffer that may leave the company unable to absorb even minor disruptions in trade receivables collection or sudden shifts in commodity market pricing.
This minimal cash-to-revenue ratio suggests that the company operates with virtually no margin for error in its working capital management. Any delay in payments from its mid-tier manufacturing clients could potentially trigger a liquidity crisis, given the lack of readily available cash reserves to cover operational obligations.
According to recent disclosures, NPT's asset-light structure reflects its role as a pure-play commodity intermediary, yet this lack of physical infrastructure or proprietary assets suggests the company possesses little in the way of tangible collateral to support its operations during periods of industrial sector volatility.
The absence of significant fixed assets implies that the company's value is almost entirely tied to its transactional relationships and short-term inventory. This configuration makes the firm highly vulnerable to competitive displacement, as it lacks the capital-intensive barriers to entry that might otherwise protect its market position.
Based on the company's reported financial profile, the headline debt-to-equity ratio likely obscures the true extent of NPT's leverage, as the firm's reliance on off-balance-sheet trade financing and letters of credit may represent a significant, unquantified liability that warrants further investigation by institutional analysts.
The discrepancy between the company's massive transactional volume and its minimal reported cash suggests that the business is heavily dependent on external credit facilities to function. Analysts should be wary that these off-balance-sheet arrangements could create sudden solvency pressures if credit markets tighten or if counterparty risk increases.
Quick answers to the most common questions about buying NPT stock.
As of 2023, Texxon Holding Limited Ordinary shares (NPT) had total assets of $89.7M including $18.0M in current assets.
Texxon Holding Limited Ordinary shares (NPT) carries total debt of $25.8M, offset by $0.3M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Texxon Holding Limited Ordinary shares (NPT) has total shareholders' equity (book value) of $-2.8M ($1.45 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Texxon Holding Limited Ordinary shares (NPT) reported a current ratio of 0.31x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.