The company has successfully reduced financial risk, evidenced by a significant improvement in the debt-to-equity ratio from 1.12 in 2024Q4 to 0.35 as of 2026Q2.
| Total Current Assets | 26.02M | 27.45M | 23.64M | 11.19M | 16.78M |
| Cash & Short-Term Investments | 4.6M | 6.65M | 3.47M | 1.38M | 1.14M |
| Cash Only | 4.6M | 6.65M | 3.47M | 1.38M | 1.14M |
| Short-Term Investments | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 13.8M | 12.99M | 12.01M | 10.92M | 9.39M |
| Days Sales Outstanding | 60.61 | 108.28 | 105.96 | 193.4 | 114.95 |
| Inventory | 6.99M | 7.58M | 6.25M | 3.27M | 5.62M |
| Days Inventory Outstanding | 45.84 | 95.19 | 85.61 | 82.44 | 97.37 |
| Other Current Assets | 619.65K | 0 | 1.56M | 0 | 377.78K |
| Total Non-Current Assets | 12.12M | 16.24M | 10.57M | 5.04M | 8.47M |
| Property, Plant & Equipment | 8.69M | 10.82M | 10.33M | 4.92M | 8.25M |
| Fixed Asset Turnover | 7.66x | 4.05x | 4.00x | 4.19x | 3.61x |
| Goodwill | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 | 0 | 0 |
| Long-Term Investments | 4.12M | 236.77K | 231.29K | 125.48K | 220.25K |
| Other Non-Current Assets | 0 | 5.18M | 0 | 0 | 0 |
| Total Assets | 38.13M | 43.69M | 34.21M | 16.24M | 25.25M |
| Asset Turnover | 1.98x | 1.00x | 1.21x | 1.27x | 1.18x |
| Asset Growth % | 200.63% | 27.72% | 110.7% | -35.71% | - |
| Total Current Liabilities | 11.54M | 12.13M | 12.68M | 6.57M | 10.18M |
| Accounts Payable | 7.64M | 7.57M | 6.44M | 6.67M | 6.08M |
| Days Payables Outstanding | 49.13 | 95.11 | 88.23 | 168.12 | 105.26 |
| Short-Term Debt | 1.81M | 400.02K | 598.85K | 568.03K | 1.17M |
| Deferred Revenue (Current) | 0 | 0 | 0 | 1.72M | 0 |
| Other Current Liabilities | 1.48M | 454K | 2.07M | -1.99M | 1.75M |
| Current Ratio | 2.25x | 2.26x | 1.86x | 1.70x | 1.65x |
| Quick Ratio | 1.65x | 1.64x | 1.37x | 1.21x | 1.10x |
| Cash Conversion Cycle | 57.32 | 108.36 | 103.34 | 107.72 | 107.06 |
| Total Non-Current Liabilities | 5.55M | 6.79M | 6.94M | 3.32M | 5.62M |
| Long-Term Debt | 2.33M | 2.83M | 3.07M | 3.42M | 3.79M |
| Capital Lease Obligations | 15.72M | 3.96M | 3.87M | 2.45M | 1.83M |
| Deferred Tax Liabilities | 5.46K | 1.45K | 1.45K | 818 | 1.45K |
| Other Non-Current Liabilities | 0 | 0 | 1.45K | -2.55M | 0 |
| Total Liabilities | 17.09M | 18.92M | 19.62M | 9.88M | 15.8M |
| Total Debt | 7.36M | 8.69M | 8.94M | 4.03M | 7.53M |
| Net Debt | 2.75M | 2.04M | 5.48M | 2.65M | 6.39M |
| Debt / Equity | 0.35x | 0.35x | 1.12x | 0.63x | 0.80x |
| Debt / EBITDA | 0.83x | 2.10x | 1.57x | 1.28x | 2.10x |
| Net Debt / EBITDA | 0.31x | 0.49x | 0.96x | 0.85x | 1.78x |
| Interest Coverage | 20.11x | 13.25x | 20.34x | 33.56x | 21.02x |
| Total Equity | 21.04M | 24.77M | 8.02M | 6.35M | 9.45M |
| Equity Growth % | 396.61% | 208.82% | 26.23% | -32.79% | - |
| Book Value per Share | 1.45 | 1.82 | 0.64 | 0.44 | 0.76 |
| Total Shareholders' Equity | 21.04M | 24.77M | 8.02M | 6.35M | 9.45M |
| Common Stock | 1.54K | 1.98K | 1.71K | 1.71K | 1.71K |
| Retained Earnings | 12.49M | 13.44M | 11.21M | 4.44M | 6.07M |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | -288.74K | -61.04K | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
Singapore construction sector concentration
As reported in recent financial filings, RECT's total assets fluctuated from $16.0 million in 2024Q2 to a peak of $43.7 million in 2025Q4 before contracting to $38.1 million in 2026Q2, reflecting the company's sensitivity to cyclical infrastructure project cycles and inventory management requirements.
The rapid expansion of the asset base followed by a recent contraction suggests that the company is struggling to maintain a stable capital structure amidst volatile demand. Investors should monitor whether this volatility indicates an inability to optimize asset utilization or simply reflects the lumpy nature of large-scale industrial safety contracts.
Based on the provided balance sheet data, RECT has maintained a disciplined debt-to-equity ratio of 0.35 as of 2026Q2, which represents a significant improvement from the 1.12 ratio observed in 2024Q4, suggesting a strategic shift toward reducing financial risk in a cyclical environment.
The reduction in leverage appears to be a prudent response to the inherent volatility of the Singaporean construction market. While this low debt profile provides a buffer against interest rate shocks, it also implies that the company is relying heavily on equity to fund its operations, which may limit future return on equity potential.
According to the latest quarterly figures, RECT's current ratio stands at 2.25 as of 2026Q2, indicating that the company maintains a sufficient cushion of current assets to cover its short-term obligations despite the recent decline in cash reserves to $4.6 million.
While the current ratio appears healthy, the absolute cash position remains relatively thin given the company's operational scale and working capital requirements. This suggests that any further deterioration in cash flow could quickly constrain the company's ability to fund inventory replenishment without resorting to additional external financing.
As evidenced by the financial statements, RECT's equity base has grown from $7.2 million in 2024Q2 to $21.0 million in 2026Q2, largely driven by the accumulation of retained earnings which reached $12.5 million in the most recent period.
The consistent growth in retained earnings suggests that the company has been profitable over the long term, though the recent quarterly fluctuations warrant caution. Investors should investigate whether this equity growth is sustainable or if it is vulnerable to future margin compression in the competitive industrial distribution space.
Quick answers to the most common questions about buying RECT stock.
As of 2025, Rectitude Holdings Ltd Ordinary Shares (RECT) had total assets of $43.7M including $27.5M in current assets.
Rectitude Holdings Ltd Ordinary Shares (RECT) carries total debt of $8.7M, offset by $6.6M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Rectitude Holdings Ltd Ordinary Shares (RECT) has total shareholders' equity (book value) of $24.8M ($1.82 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Rectitude Holdings Ltd Ordinary Shares (RECT) reported a current ratio of 2.26x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.