The firm's financial position is precarious, characterized by a negative equity balance of $326,000 and a total debt load of $511,700 that significantly outweighs its remaining $31,950 in cash.
| Total Current Assets | 313.92K | 313.62K | 166.45K |
| Cash & Short-Term Investments | 31.95K | 268.16K | 34.72K |
| Cash Only | 31.95K | 268.16K | 34.72K |
| Short-Term Investments | 0 | 0 | 0 |
| Accounts Receivable | 15.95K | 45.45K | 131.73K |
| Days Sales Outstanding | 28.81 | 31.27 | 43.74 |
| Inventory | 0 | 0 | 0 |
| Days Inventory Outstanding | - | - | - |
| Other Current Assets | 266.03K | 0 | 0 |
| Total Non-Current Assets | 54K | 40.3K | 14.96K |
| Property, Plant & Equipment | 38K | 32.53K | 7.6K |
| Fixed Asset Turnover | 5.32x | 16.31x | 144.58x |
| Goodwill | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 |
| Long-Term Investments | 0 | 0 | 0 |
| Other Non-Current Assets | 16K | 7.77K | 7.36K |
| Total Assets | 367.93K | 353.92K | 181.41K |
| Asset Turnover | 0.55x | 1.50x | 6.06x |
| Asset Growth % | 3.96% | 95.09% | - |
| Total Current Liabilities | 220.69K | 158.49K | 355.88K |
| Accounts Payable | 0 | 15.03K | 3.96K |
| Days Payables Outstanding | - | 15.42 | 1.92 |
| Short-Term Debt | 378 | 18.64K | 0 |
| Deferred Revenue (Current) | 131.56K | 101.72K | 62.78K |
| Other Current Liabilities | 0 | 0 | 0 |
| Current Ratio | 1.42x | 1.98x | 0.47x |
| Quick Ratio | 1.42x | 1.98x | 0.47x |
| Cash Conversion Cycle | - | - | - |
| Total Non-Current Liabilities | 473.19K | 463.64K | 0 |
| Long-Term Debt | 473.19K | 453.83K | 0 |
| Capital Lease Obligations | 0 | 9.81K | 0 |
| Deferred Tax Liabilities | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 |
| Total Liabilities | 693.88K | 622.13K | 355.88K |
| Total Debt | 511.68K | 505.39K | 8K |
| Net Debt | 479.73K | 237.23K | -26.72K |
| Debt / Equity | - | - | - |
| Debt / EBITDA | - | - | 0.05x |
| Net Debt / EBITDA | - | - | -0.15x |
| Interest Coverage | -14.18x | -12.24x | - |
| Total Equity | -325.96K | -268.21K | -174.47K |
| Equity Growth % | -21.53% | -53.73% | - |
| Book Value per Share | -0.03 | -0.02 | -0.02 |
| Total Shareholders' Equity | -325.96K | -268.21K | -174.47K |
| Common Stock | 9.61K | 7.71K | 7.71K |
| Retained Earnings | -1.03M | -312.39K | -219.19K |
| Treasury Stock | 0 | 0 | 0 |
| Accumulated OCI | 49.72K | 31.28K | 31.83K |
| Minority Interest | 0 | 0 | 0 |
Imminent insolvency and liquidity
As reported in financial statements, OFAL's equity position has deteriorated into a deficit of $326,000 by 2025Q4, a sharp decline from the negative $153,800 observed in 2025Q2, signaling a rapid depletion of capital that threatens the firm's long-term viability in the Hong Kong market.
The consistent expansion of the equity deficit suggests that the company is failing to generate sufficient returns to offset its operating losses. Investors should monitor whether this trajectory forces a capital raise or restructuring, as the current trend indicates a fundamental inability to preserve shareholder value.
Based on the company's reported figures, total debt reached $511,700 in 2025Q4, which, when contrasted with the firm's negative equity and minimal cash reserves, suggests a precarious leverage profile that leaves little room for operational error or further market volatility in the fit-out sector.
The reliance on debt to fund operations while revenue is contracting indicates that the company is likely using external financing to cover basic overhead rather than growth initiatives. This reliance on debt in a distressed state warrants further investigation into the maturity profile and potential covenants of these obligations.
According to the latest balance sheet data, OFAL's cash position plummeted to $31,950 by 2025Q4, representing a significant reduction from the $268,200 held in 2024Q4, which highlights an acute liquidity crisis that may impede the company's ability to meet its immediate short-term financial obligations.
With a current ratio of 1.42, the headline liquidity appears superficially adequate, yet the underlying cash balance is insufficient to sustain operations given the high burn rate identified in prior periods. This discrepancy suggests that current assets are likely tied up in illiquid contract assets rather than readily available cash.
As indicated by the provided financial data, deferred revenue of $131,600 in 2025Q4 accounts for a substantial portion of the company's liabilities, suggesting that the firm is heavily dependent on client prepayments to maintain its current, albeit strained, operational footprint in the competitive Hong Kong landscape.
This reliance on unearned revenue creates a significant risk, as any failure to deliver on project milestones could lead to a demand for refunds, further exacerbating the company's liquidity constraints. Analysts should view this liability as a potential future cash outflow rather than a stable source of funding.
Quick answers to the most common questions about buying OFAL stock.
As of 2025, OFA Group (OFAL) had total assets of $0.4M including $0.3M in current assets.
OFA Group (OFAL) carries total debt of $0.5M, offset by $0.0M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
OFA Group (OFAL) has total shareholders' equity (book value) of $-0.3M ($-0.03 book value per share). Book value represents the net worth of the company belonging to common stock holders.
OFA Group (OFAL) reported a current ratio of 1.42x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.