The company's financial position has deteriorated significantly, with the debt-to-equity ratio rising from 0.55 in 2021Q4 to 2.53 in 2023Q4.
| Total Current Assets | 27.44M | 29.01M | 31.33M | 27.44M | 18.79M | 22.05M | 18.08M |
| Cash & Short-Term Investments | 9.07M | 10.14M | 7.65M | 9.07M | 5.14M | 6.82M | 2.97M |
| Cash Only | 9.07M | 10.14M | 7.65M | 9.07M | 5.14M | 6.82M | 2.97M |
| Short-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 17.05M | 17.12M | 19.82M | 17.05M | 10.98M | 13.32M | 14.37M |
| Days Sales Outstanding | 43.78 | 84.04 | 99.75 | 90.15 | 73.59 | 101.12 | 109.77 |
| Inventory | 141.43K | 44K | 55K | 141.43K | 144.17K | 427.65K | 0 |
| Days Inventory Outstanding | 0.47 | 0.28 | 0.34 | 0.88 | 1.18 | 4.38 | - |
| Other Current Assets | 209 | 889K | 1.82M | 209 | 2.52M | -427.65K | 0 |
| Total Non-Current Assets | 15.39M | 12.19M | 14.18M | 15.39M | 14.41M | 6.9M | 4.77M |
| Property, Plant & Equipment | 14.05M | 11.8M | 13.49M | 14.05M | 12.43M | 4.31M | 2.84M |
| Fixed Asset Turnover | 9.57x | 6.30x | 5.38x | 4.91x | 4.38x | 11.16x | 16.81x |
| Goodwill | 693.02K | 391K | 667K | 693.02K | 813.03K | 531.47K | 369.3K |
| Intangible Assets | 92.59K | 2K | 21K | 92.59K | 385.75K | 768.84K | 1.13M |
| Long-Term Investments | -24.74K | 0 | 0 | -12.49K | -12.25K | -19.13K | 422.67K |
| Other Non-Current Assets | 552.77K | 0 | 0 | 552.77K | 781.33K | 1.29M | -3.49K |
| Total Assets | 42.82M | 41.2M | 45.51M | 42.82M | 33.2M | 28.95M | 22.85M |
| Asset Turnover | 3.30x | 1.80x | 1.59x | 1.61x | 1.64x | 1.66x | 2.09x |
| Asset Growth % | 45.98% | -9.47% | 6.27% | 28.99% | 14.68% | 26.68% | - |
| Total Current Liabilities | 24.52M | 20.87M | 22.74M | 24.52M | 12.43M | 10.29M | 9.23M |
| Accounts Payable | 10.9M | 10.33M | 9.41M | 10.9M | 8.69M | 5.41M | 4.67M |
| Days Payables Outstanding | 29.39 | 66.35 | 57.3 | 68.11 | 71.12 | 55.37 | 40.36 |
| Short-Term Debt | 11.9M | 8.48M | 11.28M | 11.9M | 2.47M | 1.81M | 3.33M |
| Deferred Revenue (Current) | -2.81M | 0 | 0 | 0 | 0 | 437.92K | 0 |
| Other Current Liabilities | -76 | 0 | 0 | -76 | 316.54K | 2.1M | 350.95K |
| Current Ratio | 1.12x | 1.39x | 1.38x | 1.12x | 1.51x | 2.14x | 1.96x |
| Quick Ratio | 1.11x | 1.39x | 1.38x | 1.11x | 1.50x | 2.10x | 1.96x |
| Cash Conversion Cycle | 14.86 | 17.97 | 42.78 | 22.92 | 3.65 | 50.13 | - |
| Total Non-Current Liabilities | 9.47M | 5.65M | 7.71M | 9.47M | 9.53M | 5.37M | 1.25M |
| Long-Term Debt | 7.11M | 4.33M | 5.71M | 7.11M | 7.45M | 3.71M | 0 |
| Capital Lease Obligations | 4.76M | 1.07M | 1.75M | 1.63M | 1.36M | 1M | 707.26K |
| Deferred Tax Liabilities | 2.84M | 255K | 251K | 725.89K | 711.46K | 655.3K | 539.62K |
| Other Non-Current Liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Liabilities | 33.99M | 26.52M | 30.45M | 33.99M | 21.96M | 15.66M | 10.48M |
| Total Debt | 22.36M | 15.47M | 20.79M | 22.36M | 12.01M | 7.35M | 4.84M |
| Net Debt | 13.29M | 5.33M | 13.14M | 13.29M | 6.86M | 529.45K | 1.86M |
| Debt / Equity | 2.53x | 1.05x | 1.38x | 2.53x | 1.07x | 0.55x | 0.39x |
| Debt / EBITDA | -5.33x | 4.69x | 19.08x | 14.42x | 6.51x | 0.87x | 1.85x |
| Net Debt / EBITDA | -3.17x | 1.62x | 12.06x | 8.57x | 3.72x | 0.06x | 0.71x |
| Interest Coverage | -2.35x | -1.24x | -2.25x | -2.54x | -1.98x | 28.56x | 3.11x |
| Total Equity | 8.83M | 14.68M | 15.06M | 8.83M | 11.24M | 13.28M | 12.37M |
| Equity Growth % | -71.3% | -2.52% | 70.49% | -21.43% | -15.37% | 7.38% | - |
| Book Value per Share | 0.27 | 0.40 | 0.44 | 0.25 | 0.32 | 0.37 | 0.35 |
| Total Shareholders' Equity | 8.78M | 14.89M | 14.99M | 8.78M | 11.17M | 13.28M | 12.37M |
| Common Stock | 12.72M | 23.96M | 22.19M | 12.72M | 12.72M | 12.72M | 10.09M |
| Retained Earnings | -5.81M | -10.99M | -9.05M | -5.81M | -3.28M | -1.23M | 1.37M |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | 946.9K | 995K | 923K | 946.9K | 808.81K | 872.51K | -17.94K |
| Minority Interest | 51.83K | -210K | 68K | 51.83K | 66.89K | 0 | 0 |
Rising leverage and insolvency
Based on reported financial statements, Primech Holdings has seen its debt-to-equity ratio climb from 0.55 in 2021Q4 to 2.53 by 2023Q4, signaling a significant weakening of the balance sheet as the company increasingly relies on external financing to support its operations amidst persistent net losses.
The consistent expansion of total liabilities relative to equity suggests that the company is struggling to generate internal capital to fund its growth. This trajectory warrants caution, as the reliance on debt to bridge operational gaps may limit future financial flexibility.
As reported in quarterly filings, Primech Holdings' total debt surged from $7.3M in 2021Q4 to $22.4M in 2023Q4, a trend that indicates a shift toward debt-funded operations that may pose significant refinancing risks given the company's inability to maintain consistent positive net income.
The rapid accumulation of debt relative to the company's stagnant equity base suggests that leverage is being used as a necessity to cover operating cash shortfalls rather than for strategic expansion. Investors should monitor whether this debt burden becomes unsustainable if interest rates remain elevated or if operational performance fails to improve.
According to the latest balance sheet data, the current ratio has compressed from 2.14 in 2021Q4 to 1.12 in 2023Q4, indicating that the company's ability to cover short-term obligations is narrowing as cash reserves fail to keep pace with the growth in current liabilities.
A current ratio approaching unity suggests that the company has little margin for error in managing its working capital. Any unexpected disruption in receivables collection could lead to immediate liquidity constraints, given the lack of a substantial cash cushion relative to the current debt load.
Based on the provided figures, retained earnings have deteriorated from -$1.2M in 2021Q4 to -$5.8M in 2023Q4, reflecting a consistent pattern of value destruction that has significantly weakened the company's equity base and overall financial resilience over the observed two-year period.
The persistent decline in retained earnings highlights the fundamental challenge of achieving profitability within the current cost structure. This erosion of equity suggests that the company is effectively consuming its own capital base, which may necessitate future dilutive financing if operational trends do not reverse.
Quick answers to the most common questions about buying PMEC stock.
As of 2025, Primech Holdings Ltd. Ordinary Shares (PMEC) had total assets of $41.2M including $29.0M in current assets.
Primech Holdings Ltd. Ordinary Shares (PMEC) carries total debt of $15.5M, offset by $10.1M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Primech Holdings Ltd. Ordinary Shares (PMEC) has total shareholders' equity (book value) of $14.9M ($0.40 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Primech Holdings Ltd. Ordinary Shares (PMEC) reported a current ratio of 1.39x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.