The company's financial position appears increasingly vulnerable as total debt climbed to $12.5 million while cash reserves plummeted to a mere $184,856 by 2025Q4.
| Total Current Assets | 43.36M | 33.09M | 22.1M | 28.24M | 13.49M | 11.95M | 3.7M |
| Cash & Short-Term Investments | 4.72M | 532.61K | 5.88M | 7.03M | 5.17M | 460.52K | 1.01M |
| Cash Only | 184.86K | 532.61K | 5.88M | 7.03M | 5.17M | 460.52K | 1.01M |
| Short-Term Investments | 4.54M | 0 | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 16.93M | 13.49M | 6.42M | 10.22M | 1.81M | 5.24M | 1.26M |
| Days Sales Outstanding | 270.36 | 162.51 | 115.23 | 138.69 | 35.45 | 135.37 | 51.37 |
| Inventory | 9.73M | 8.84M | 7.06M | 6.23M | 3.9M | 1.68M | 1.25M |
| Days Inventory Outstanding | 197.39 | 122.6 | 167.45 | 112.03 | 110.33 | 59.76 | 68.17 |
| Other Current Assets | 4.5M | 792.2K | 1.06K | 34.73K | 2.11M | 3.6M | 0 |
| Total Non-Current Assets | 16.08M | 12.94M | 13.19M | 9.37M | 9.98M | 10.18M | 9.72M |
| Property, Plant & Equipment | 13.13M | 8.62M | 9.26M | 9.33M | 9.93M | 10.16M | 9.68M |
| Fixed Asset Turnover | 1.74x | 3.52x | 2.19x | 2.89x | 1.88x | 1.39x | 0.92x |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 2.68M | 61.97K | 31.85K | 8.81K | 11.09K | 12.06K | 3.23K |
| Long-Term Investments | 193.45K | 411K | 3.86M | 9.34M | 9.94M | 10.17M | 0 |
| Other Non-Current Assets | 0 | 3.75M | 0 | -9.34M | -9.94M | -10.17M | 30.49K |
| Total Assets | 59.45M | 46.03M | 35.29M | 37.61M | 23.47M | 22.13M | 13.42M |
| Asset Turnover | 0.38x | 0.66x | 0.58x | 0.72x | 0.79x | 0.64x | 0.67x |
| Asset Growth % | 29.14% | 30.46% | -6.17% | 60.22% | 6.07% | 64.84% | - |
| Total Current Liabilities | 20.77M | 15.53M | 13.21M | 18.04M | 11.87M | 17.22M | 11.02M |
| Accounts Payable | 6.23M | 8.34M | 5.69M | 4.73M | 4.15M | 3.21M | 2.74M |
| Days Payables Outstanding | 126.44 | 115.64 | 135 | 85.07 | 117.39 | 114.16 | 149.4 |
| Short-Term Debt | 9.07M | 1.22M | 295.81K | 10.58M | 5.76M | 11.09M | 770.46K |
| Deferred Revenue (Current) | 1.57M | 628.07K | 357.38K | 711.01K | 542.01K | 802.66K | 416.14K |
| Other Current Liabilities | 0 | 0 | 3.35M | 1.24M | 792.12K | 1.82M | 0 |
| Current Ratio | 2.09x | 2.13x | 1.67x | 1.56x | 1.14x | 0.69x | 0.34x |
| Quick Ratio | 1.62x | 1.56x | 1.14x | 1.22x | 0.81x | 0.60x | 0.22x |
| Cash Conversion Cycle | 341.31 | 169.47 | 147.68 | 165.64 | 28.39 | 80.97 | -29.86 |
| Total Non-Current Liabilities | 3.41M | 3.91M | 1.87M | 217.52K | 4.71M | 1.53M | 1.44M |
| Long-Term Debt | 3.41M | 3.91M | 1.87M | 217.52K | 4.71M | 1.53M | 1.44M |
| Capital Lease Obligations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Liabilities | 24.18M | 19.45M | 15.08M | 18.26M | 16.58M | 18.75M | 12.45M |
| Total Debt | 12.48M | 5.13M | 2.17M | 10.79M | 10.46M | 12.62M | 8.59M |
| Net Debt | 12.3M | 4.6M | -3.71M | 3.76M | 5.29M | 12.16M | 7.58M |
| Debt / Equity | 0.35x | 0.19x | 0.11x | 0.56x | 1.52x | 3.74x | 8.86x |
| Debt / EBITDA | - | - | 1.31x | 2.49x | 2.83x | 5.14x | 8.49x |
| Net Debt / EBITDA | - | - | -2.25x | 0.87x | 1.43x | 4.95x | 7.49x |
| Interest Coverage | -2.98x | -6.87x | 3.87x | 7.96x | 8.18x | 10.89x | 21.96x |
| Total Equity | 35.27M | 26.59M | 20.2M | 19.34M | 6.89M | 3.38M | 969.47K |
| Equity Growth % | 32.65% | 31.6% | 4.44% | 180.58% | 104.19% | 248.27% | - |
| Book Value per Share | 6921.66 | 1.78 | 1.68 | 1.61 | 0.57 | 0.28 | 0.08 |
| Total Shareholders' Equity | 35.27M | 26.59M | 20.2M | 19.34M | 6.89M | 3.38M | 969.47K |
| Common Stock | 19.69K | 5.06K | 1.2K | 1.2K | 900 | 0 | 0 |
| Retained Earnings | 6.55M | 8.06M | 9.19M | 8.16M | 5.04M | 1.99M | -9.17K |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | 858.98K | -121.79K | 368.55K | 532.97K | 795.62K | 326.89K | -81.87K |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Critical liquidity and solvency
As reported in recent financial statements, RAYA's cash position has plummeted to a mere $184,856 as of 2025Q4, representing a severe contraction from the $7.0 million held in 2022Q4 and leaving the company with virtually no buffer to absorb further operational shocks or working capital volatility.
The rapid depletion of cash reserves suggests that the company is struggling to fund its ongoing operations through internal cash generation. Investors should monitor whether this liquidity crunch necessitates dilutive equity financing or emergency debt, as the current cash balance appears insufficient to support the firm's existing scale.
Based on the company's reported figures, total debt has climbed to $12.5 million in 2025Q4, which, when paired with a shrinking equity base, has pushed the debt-to-equity ratio to 0.35, signaling an increased reliance on external financing to sustain operations during a period of declining demand.
While the debt-to-equity ratio remains moderate in absolute terms, the trend of increasing leverage during a period of negative operating margins warrants caution. This reliance on debt appears to be a necessity-driven measure to bridge the gap between cash outflows and operational revenue, rather than a strategic move to fund growth.
According to the latest balance sheet data, RAYA's goodwill has expanded to $2.7 million by 2025Q4, a significant increase from the negligible levels reported in 2023, which may indicate recent acquisitions that have yet to demonstrate clear value creation in the current, challenging macroeconomic environment.
The accumulation of goodwill during a period of revenue contraction raises concerns regarding potential future impairment charges. If the underlying business units fail to return to profitability, the carrying value of these intangible assets may need to be written down, further pressuring the company's equity position.
As indicated by the historical balance sheet data, the company's financial health has weakened significantly since 2021, with total assets growing to $59.4 million while cash reserves have evaporated, suggesting that capital is being tied up in less liquid assets rather than maintaining operational flexibility.
The trajectory of the balance sheet appears to be one of increasing capital intensity without a corresponding improvement in liquidity or profitability. This trend suggests that the business model is becoming more asset-heavy at a time when the company lacks the cash flow to support such a structure, increasing the risk of long-term insolvency.
Quick answers to the most common questions about buying RAYA stock.
As of 2025, Erayak Power Solution Group Inc. (RAYA) had total assets of $59.4M including $43.4M in current assets.
Erayak Power Solution Group Inc. (RAYA) carries total debt of $12.5M, offset by $4.7M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Erayak Power Solution Group Inc. (RAYA) has total shareholders' equity (book value) of $35.3M ($6921.66 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Erayak Power Solution Group Inc. (RAYA) reported a current ratio of 2.09x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.