The company's financial position has weakened significantly, with total liabilities rising to $7.8M against a cash balance of only $1.8M, resulting in a debt-to-equity ratio of 0.45.
| Total Current Assets | 8.86M | 7.09M | 6.31M | 4.02M | 3.84M | 3.33M |
| Cash & Short-Term Investments | 1.76M | 410.72K | 524.6K | 208.21K | 1.04M | 306.46K |
| Cash Only | 1.76M | 410.72K | 524.6K | 208.21K | 1.04M | 306.46K |
| Short-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 5.58M | 5.3M | 2.29M | 3.37M | 2.51M | 1.74M |
| Days Sales Outstanding | 207.74 | 191.43 | 75.28 | 132.75 | 79.32 | 213.18 |
| Inventory | 305.74K | 1.19M | 1.06M | 94.57K | 249.15K | 656.98K |
| Days Inventory Outstanding | 14.75 | 56 | 44.22 | 5.55 | 12 | 125.74 |
| Other Current Assets | 281.23K | 143.03K | 2M | 315.86K | 1 | 67.02K |
| Total Non-Current Assets | 4.95M | 141.27K | 226.6K | 330.25K | 381.26K | 579.51K |
| Property, Plant & Equipment | 1.71M | 52.83K | 103.23K | 145.47K | 281.16K | 388.89K |
| Fixed Asset Turnover | 5.73x | 191.21x | 107.42x | 63.64x | 41.11x | 7.65x |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 1.11M | 0 | 0 | 0 | 0 | 0 |
| Long-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 2.02M | 88.44K | 123.37K | 184.78K | 0 | 190.61K |
| Total Assets | 13.81M | 7.23M | 6.54M | 4.35M | 4.22M | 3.91M |
| Asset Turnover | 0.71x | 1.40x | 1.70x | 2.13x | 2.74x | 0.76x |
| Asset Growth % | 91.05% | 10.51% | 50.24% | 3.22% | 7.88% | - |
| Total Current Liabilities | 6.85M | 4.17M | 2.08M | 1.94M | 1.69M | 2.44M |
| Accounts Payable | 1.9M | 2.86M | 1.15M | 1.01M | 1.01M | 1.46M |
| Days Payables Outstanding | 91.74 | 134.09 | 48.24 | 59.31 | 48.44 | 279.65 |
| Short-Term Debt | 1.59M | 0 | 0 | 130.94K | 98.55K | 93.54K |
| Deferred Revenue (Current) | 1.92M | 0 | 0 | 302.43K | 413.01K | 0 |
| Other Current Liabilities | 230.38K | 766.33K | 472.67K | 0 | 70.39K | 841.42K |
| Current Ratio | 1.29x | 1.70x | 3.03x | 2.07x | 2.27x | 1.36x |
| Quick Ratio | 1.25x | 1.41x | 2.52x | 2.02x | 2.12x | 1.10x |
| Cash Conversion Cycle | 130.75 | 113.34 | 71.26 | 78.99 | 42.88 | 59.27 |
| Total Non-Current Liabilities | 977.99K | 0 | 12.71K | 0 | 0 | 93.53K |
| Long-Term Debt | 421.41K | 0 | 0 | 0 | 0 | 93.53K |
| Capital Lease Obligations | 556.58K | 0 | 12.71K | 0 | 0 | 0 |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Liabilities | 7.83M | 4.17M | 2.1M | 1.94M | 1.69M | 2.53M |
| Total Debt | 2.71M | 13.12K | 54.36K | 130.94K | 98.55K | 187.07K |
| Net Debt | 950.42K | -397.59K | -470.25K | -77.27K | -943.38K | -119.39K |
| Debt / Equity | 0.45x | 0.00x | 0.01x | 0.05x | 0.04x | 0.14x |
| Debt / EBITDA | - | - | 0.11x | 0.78x | 0.07x | 0.98x |
| Net Debt / EBITDA | - | - | -0.97x | -0.46x | -0.70x | -0.63x |
| Interest Coverage | - | - | 84.84x | 5.64x | 101.39x | 318.76x |
| Total Equity | 5.98M | 3.06M | 4.44M | 2.41M | 2.53M | 1.38M |
| Equity Growth % | 95.24% | -31.09% | 84.31% | -4.57% | 83.64% | - |
| Book Value per Share | 0.35 | 0.19 | 0.30 | 0.16 | 0.17 | 0.09 |
| Total Shareholders' Equity | 5.78M | 2.97M | 4.44M | 2.41M | 2.53M | 1.42M |
| Common Stock | 5.12K | 3.94K | 3.94K | 3.75K | 3.75K | 10K |
| Retained Earnings | -12.53M | -1.67M | -129.36K | -291.59K | -424.28K | -1.49M |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | -169.21K | -186.13K | -252.75K | -223.31K | 24.79K | -59.49K |
| Minority Interest | 197.17K | 91.07K | 0 | 0 | 0 | -45.18K |
Imminent liquidity and solvency
As reported in recent financial statements, NTCL's total liabilities have surged to $7.8M against a cash balance of only $1.8M, signaling a rapid erosion of the company's balance sheet strength as it struggles to fund ongoing operations through its existing capital base.
The expansion of total liabilities relative to stagnant asset growth suggests that the company is increasingly reliant on external obligations to sustain its business model. This trajectory indicates a weakening financial foundation that may limit the firm's ability to navigate future operational volatility.
Based on the 2025Q4 balance sheet, NTCL maintains a current ratio of 1.29, which masks a precarious cash position of $1.76M that appears insufficient to cover the company's substantial operating losses and ongoing working capital requirements observed in recent reporting periods.
While the current ratio remains above unity, the composition of current assets warrants caution as it may include illiquid receivables from institutional clients. Investors should monitor the company's ability to convert these assets into cash, as the current burn rate suggests a high probability of a liquidity shortfall.
According to the latest filings, NTCL's debt levels have climbed to $2.7M, resulting in a debt-to-equity ratio of 0.45, which represents a significant departure from the near-zero leverage profile maintained by the company as recently as the 2024 fiscal year.
The shift toward debt financing appears to be a reactive measure to cover mounting operating losses rather than a strategic capital allocation decision. This increased leverage adds a layer of financial risk that may complicate future refinancing efforts if the company fails to achieve profitability.
As indicated by the company's financial disclosures, retained earnings have plummeted to -$12.5M, reflecting a persistent inability to generate positive net income and suggesting that shareholder equity is being systematically eroded by ongoing operational inefficiencies and high overhead costs.
The significant negative balance in retained earnings highlights the long-term impact of the company's inability to scale its revenue relative to its cost structure. This trend suggests that future growth may require dilutive equity financing, which would further impact existing shareholder value.
Based on the 2025Q4 data, the emergence of $1.1M in goodwill on the balance sheet warrants further investigation, as it may indicate past acquisitions that have yet to demonstrate the expected synergies or value creation for the firm's core institutional software business.
The presence of goodwill in a company with negative earnings and contracting revenue raises concerns regarding potential future impairment charges. Analysts should scrutinize the valuation assumptions underlying these intangible assets to determine if they accurately reflect the company's current market position.
Quick answers to the most common questions about buying NTCL stock.
As of 2025, NetClass Technology Inc (NTCL) had total assets of $13.8M including $8.9M in current assets.
NetClass Technology Inc (NTCL) carries total debt of $2.7M, offset by $1.8M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
NetClass Technology Inc (NTCL) has total shareholders' equity (book value) of $5.8M ($0.35 book value per share). Book value represents the net worth of the company belonging to common stock holders.
NetClass Technology Inc (NTCL) reported a current ratio of 1.29x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.