Despite a low debt-to-equity ratio of 0.19%, the firm's financial flexibility is severely constrained by its inability to generate positive operating cash flow.
| Metric | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Total Current Assets | 10.89M | 12.25M | 18.69M | 6.88M | 3.18M |
| Cash & Short-Term Investments | 1.06M | 3.26M | 11.23M | 4.48M | 1.3M |
| Cash Only | 1.04M | 3.18M | 11.21M | 4.48M | 1.3M |
| Short-Term Investments | 20K | 81K | 12K | 0 | 0 |
| Accounts Receivable | 925K | 1.47M | 2.1M | 1.79M | 862K |
| Days Sales Outstanding | 60.91 | 79.02 | 72.16 | 38.37 | 160.77 |
| Inventory | 772K | 44K | 152K | 198K | 900K |
| Days Inventory Outstanding | 43 | 2.54 | 5.84 | 4.58 | 311.37 |
| Other Current Assets | 7.03M | 7.17M | 5.13M | 96K | 6K |
| Total Non-Current Assets | 7.64M | 5.82M | 2.41M | 4.65M | 859K |
| Property, Plant & Equipment | 4.56M | 5.82M | 2.31M | 4.39M | 438K |
| Fixed Asset Turnover | 1.22x | 1.16x | 4.60x | 3.88x | 4.47x |
| Goodwill | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 94K | 265K | 409K |
| Long-Term Investments | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 3.08M | 0 | 0 | 0 | 0 |
| Total Assets | 18.53M | 18.07M | 21.1M | 11.53M | 4.04M |
| Asset Turnover | 0.30x | 0.37x | 0.50x | 1.48x | 0.48x |
| Asset Growth % | 2.54% | -14.34% | 82.95% | 185.61% | - |
| Total Current Liabilities | 3.68M | 687K | 555K | 1.4M | 324K |
| Accounts Payable | 438K | 45K | 165K | 1.26M | 47K |
| Days Payables Outstanding | 24.4 | 2.6 | 6.34 | 29.18 | 16.26 |
| Short-Term Debt | 2.12M | 0 | 0 | 17K | 0 |
| Deferred Revenue (Current) | 870K | 0 | 0 | 62K | 0 |
| Other Current Liabilities | 0 | 0 | 0 | -17K | 0 |
| Current Ratio | 2.96x | 17.83x | 33.68x | 4.93x | 9.81x |
| Quick Ratio | 2.75x | 17.77x | 33.40x | 4.79x | 7.03x |
| Cash Conversion Cycle | 79.51 | 78.96 | 71.66 | 13.77 | 455.89 |
| Total Non-Current Liabilities | 486K | 569K | 231K | 12.5M | 3.22M |
| Long-Term Debt | 0 | 0 | 0 | 0 | 0 |
| Capital Lease Obligations | 486K | 569K | 231K | 27K | 0 |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 | 12.47M | 3.22M |
| Total Liabilities | 4.17M | 1.26M | 786K | 13.9M | 3.54M |
| Total Debt | 2.68M | 810K | 419K | 44K | 0 |
| Net Debt | 1.65M | -2.37M | -10.8M | -4.43M | -1.3M |
| Debt / Equity | 0.19x | 0.05x | 0.02x | - | - |
| Debt / EBITDA | - | - | - | - | - |
| Net Debt / EBITDA | - | - | - | - | -3.56x |
| Interest Coverage | - | - | - | - | - |
| Total Equity | 14.37M | 16.82M | 20.31M | -2.36M | 496K |
| Equity Growth % | -14.58% | -17.2% | 959.67% | -576.41% | - |
| Book Value per Share | 8.44 | 10.75 | 15.85 | -2.85 | - |
| Total Shareholders' Equity | 14.37M | 16.82M | 20.31M | -2.36M | 496K |
| Common Stock | 2K | 2K | 2K | 1K | 9K |
| Retained Earnings | -37.23M | -31.34M | -25.26M | -16.41M | 292K |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | -542K | -518K | -461K | 83K | 56K |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
Critical liquidity and insolvency
As reported in recent financial disclosures, SAIHEAT maintains a cash and equivalents balance of approximately $1.038 million, which appears insufficient to cover the company's ongoing operating losses and suggests a high probability of near-term liquidity stress without immediate external capital injections or significant operational improvements.
The current cash position provides a very thin buffer against the company's high fixed-cost structure and negative gross margins. Investors should monitor the burn rate closely, as the lack of substantial liquid assets may force management to pursue dilutive equity financing to maintain basic operational continuity.
Based on the company's reported figures, the balance sheet appears to be weakening as the firm struggles to transition its business model, with the 18.20% year-over-year revenue decline indicating that the asset base is failing to generate the necessary returns to support the company's long-term viability.
The shift toward liquid-cooling infrastructure requires significant capital, yet the current financial trajectory suggests that the company is consuming its limited resources rather than building a sustainable asset base. This trend warrants further investigation into whether the firm's core infrastructure is becoming obsolete faster than it can be monetized.
According to the company's operational profile, the reliance on specialized liquid-cooling hardware suggests a high concentration of capital in assets that may be subject to rapid technological obsolescence, potentially necessitating significant future impairments if the firm fails to achieve competitive utilization rates in its data centers.
The asset mix is heavily skewed toward infrastructure that requires constant maintenance and energy inputs, which are currently not being recovered through revenue. The lack of clear asset-level profitability implies that the book value of these holdings may not accurately reflect their true economic utility in a competitive market.
While the company's low debt-to-equity ratio of 0.19% might appear conservative, it likely masks a fundamental inability to access traditional credit markets, suggesting that the firm's financial flexibility is severely constrained by its persistent inability to generate positive operating cash flow or maintain profitable margins.
Investors should be wary of interpreting low leverage as a sign of financial strength in this context, as it more likely reflects a lack of institutional confidence in the company's business model. The absence of debt may actually be a symptom of the firm's inability to secure financing for its capital-intensive growth strategy.
Quick answers to the most common questions about buying SAIHW stock.
As of 2024, SAIHEAT Limited (SAIHW) had total assets of $18.5M including $10.9M in current assets.
SAIHEAT Limited (SAIHW) carries total debt of $2.7M, offset by $1.1M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
SAIHEAT Limited (SAIHW) has total shareholders' equity (book value) of $14.4M ($8.44 book value per share). Book value represents the net worth of the company belonging to common stock holders.
SAIHEAT Limited (SAIHW) reported a current ratio of 2.96x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.