The company maintains a conservative capital structure with a 0.35 debt-to-equity ratio, yet this low leverage may limit its capacity to fund aggressive growth initiatives.
| Metric | Dec'24 | Dec'23 | Dec'22 |
|---|
| Total Current Assets | 3.9M | 2.13M | 14.57K |
| Cash & Short-Term Investments | 685.8K | 121.37K | 11.53K |
| Cash Only | 685.8K | 121.37K | 11.53K |
| Short-Term Investments | 0 | 0 | 0 |
| Accounts Receivable | 3.19M | 1.93M | 3.04K |
| Days Sales Outstanding | 353.37 | 334.82 | 6.26 |
| Inventory | 21.16K | 64.01K | 0 |
| Days Inventory Outstanding | 4.45 | 28.55 | - |
| Other Current Assets | 0 | 0 | 0 |
| Total Non-Current Assets | 1.7M | 1.69M | 118.72K |
| Property, Plant & Equipment | 922.33K | 1.27M | 118.72K |
| Fixed Asset Turnover | 3.57x | 1.66x | 1.49x |
| Goodwill | 0 | 0 | 0 |
| Intangible Assets | 256.81K | 423.31K | 0 |
| Long-Term Investments | 298 | 0 | 0 |
| Other Non-Current Assets | 521.81K | 0 | 0 |
| Total Assets | 5.6M | 3.82M | 133.29K |
| Asset Turnover | 0.59x | 0.55x | 1.33x |
| Asset Growth % | 46.85% | 2763.45% | - |
| Total Current Liabilities | 2.9M | 2.98M | 416.27K |
| Accounts Payable | 1.82M | 2.39M | 0 |
| Days Payables Outstanding | 382.61 | 1.07K | - |
| Short-Term Debt | 764 | 764 | 764 |
| Deferred Revenue (Current) | 93.95K | 9.87K | 73.83K |
| Other Current Liabilities | 0 | 0 | 0 |
| Current Ratio | 1.34x | 0.71x | 0.04x |
| Quick Ratio | 1.34x | 0.69x | 0.04x |
| Cash Conversion Cycle | -24.78 | -704.55 | - |
| Total Non-Current Liabilities | 2.23M | 2.55M | 2.3M |
| Long-Term Debt | 0 | 0 | 0 |
| Capital Lease Obligations | 106.23K | 176.14K | 85.56K |
| Deferred Tax Liabilities | 43.87K | 106K | 0 |
| Other Non-Current Liabilities | 2.08M | 2.27M | 2.21M |
| Total Liabilities | 5.14M | 5.53M | 2.72M |
| Total Debt | 162.67K | 242.41K | 115K |
| Net Debt | -523.12K | 121.04K | 103.47K |
| Debt / Equity | 0.35x | - | - |
| Debt / EBITDA | 0.17x | 0.20x | - |
| Net Debt / EBITDA | -0.55x | 0.10x | - |
| Interest Coverage | - | - | - |
| Total Equity | 466.57K | -1.71M | -2.58M |
| Equity Growth % | 127.27% | 33.75% | - |
| Book Value per Share | 0.05 | -0.15 | -0.22 |
| Total Shareholders' Equity | 466.57K | -1.71M | -2.58M |
| Common Stock | 495 | 428 | 428 |
| Retained Earnings | 820.79K | 534.64K | -383.04K |
| Treasury Stock | 0 | 0 | 0 |
| Accumulated OCI | 113.29K | 21.77K | 67.73K |
| Minority Interest | 0 | 0 | 0 |
Limited liquidity for expansion
As reported in financial summaries, PFAI's rapid 56.6% revenue growth trajectory is currently outpacing its internal capital generation, creating a structural tension between the company's aggressive market expansion and the limited liquidity available to sustain such high-velocity operational scaling in the competitive Canadian urban farming sector.
The company's trajectory suggests a business model that is successfully capturing market share but remains in a precarious phase where growth is highly dependent on external funding or tight working capital management. Investors should monitor whether this expansion phase will eventually yield the economies of scale necessary to stabilize the balance sheet or if it will necessitate dilutive financing.
Based on recent company intelligence, PFAI maintains a cash position of $685,796 against $3.2M in revenue, which indicates a thin liquidity buffer that may leave the firm susceptible to operational shocks or unexpected delays in project-based revenue recognition within its urban farming service segment.
The current liquidity profile appears insufficient to support significant R&D or geographic expansion without external capital. This tight cash position suggests that the company's ability to navigate potential supply chain disruptions or seasonal demand fluctuations is currently constrained, warranting a cautious outlook on near-term financial stability.
According to disclosed figures, PFAI operates with a low debt-to-equity ratio of 0.35%, which suggests a management preference for conservative capital structures, though this lack of leverage may also reflect limited access to traditional credit markets for a company of its current scale and risk profile.
While the low leverage provides a degree of safety against interest rate volatility, it also implies that the company is largely self-funding its growth through equity or operational cash flow. This strategy appears to prioritize balance sheet health over aggressive debt-fueled expansion, which may be prudent given the discretionary nature of the firm's consumer-facing hardware products.
As noted in recent filings, the significant disparity between the 18.69% operating margin and the 8.70% net margin suggests that non-operating expenses or tax treatments may be masking the true cash-generating capacity of the firm's integrated hardware and data-driven support service business model.
The gap between operating and net margins warrants further investigation into whether the company is incurring high costs related to customer acquisition or technical support that are not fully captured in the gross margin. Investors should be wary that the headline growth figures might be inflated by one-time project installations that do not translate into long-term, recurring cash flow.
Quick answers to the most common questions about buying PFAI stock.
As of 2024, Pinnacle Food Group Limited Class A Common Shares (PFAI) had total assets of $5.6M including $3.9M in current assets.
Pinnacle Food Group Limited Class A Common Shares (PFAI) carries total debt of $0.2M, offset by $0.7M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Pinnacle Food Group Limited Class A Common Shares (PFAI) has total shareholders' equity (book value) of $0.5M ($0.05 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Pinnacle Food Group Limited Class A Common Shares (PFAI) reported a current ratio of 1.34x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.