Despite a negligible 0.05% debt-to-equity ratio, the company's financial foundation appears vulnerable given its minimal cash reserves of only $57,817 against $21.5M in annual revenue.
| Metric | Sep'24 | Sep'23 | Sep'22 |
|---|
| Total Current Assets | 12.84M | 10.05M | 4.14M |
| Cash & Short-Term Investments | 57.82K | 144.62K | 121.79K |
| Cash Only | 57.82K | 144.62K | 121.79K |
| Short-Term Investments | 0 | 0 | 0 |
| Accounts Receivable | 10.21M | 9.72M | 3.75M |
| Days Sales Outstanding | 173.24 | 365.57 | 746.06 |
| Inventory | 0 | 0 | 0 |
| Days Inventory Outstanding | - | - | - |
| Other Current Assets | 2.57M | 186.79K | 271.69K |
| Total Non-Current Assets | 680.18K | 638.97K | 268.98K |
| Property, Plant & Equipment | 293.07K | 442.58K | 63.23K |
| Fixed Asset Turnover | 73.43x | 21.92x | 29.01x |
| Goodwill | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 |
| Long-Term Investments | 0 | 0 | 0 |
| Other Non-Current Assets | 287.1K | 0 | 0 |
| Total Assets | 13.53M | 10.69M | 4.41M |
| Asset Turnover | 1.59x | 0.91x | 0.42x |
| Asset Growth % | 26.55% | 142.26% | - |
| Total Current Liabilities | 6.94M | 5.76M | 1.74M |
| Accounts Payable | 5.24M | 4.39M | 906.98K |
| Days Payables Outstanding | 103.22 | 247.12 | 238.53 |
| Short-Term Debt | 0 | 0 | 0 |
| Deferred Revenue (Current) | 39.96K | 150.16K | 160.35K |
| Other Current Liabilities | 0 | 0 | 0 |
| Current Ratio | 1.85x | 1.74x | 2.38x |
| Quick Ratio | 1.85x | 1.74x | 2.38x |
| Cash Conversion Cycle | - | - | - |
| Total Non-Current Liabilities | 204.02K | 322.18K | 60.91K |
| Long-Term Debt | 0 | 0 | 0 |
| Capital Lease Obligations | 204.02K | 322.18K | 60.91K |
| Deferred Tax Liabilities | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 |
| Total Liabilities | 7.15M | 6.08M | 1.8M |
| Total Debt | 302.98K | 432.4K | 74.63K |
| Net Debt | 245.16K | 287.78K | -47.16K |
| Debt / Equity | 0.05x | 0.09x | 0.03x |
| Debt / EBITDA | 0.14x | 0.18x | 0.40x |
| Net Debt / EBITDA | 0.11x | 0.12x | -0.25x |
| Interest Coverage | 120.96x | 111.61x | 50.74x |
| Total Equity | 6.38M | 4.61M | 2.61M |
| Equity Growth % | 38.52% | 76.57% | - |
| Book Value per Share | 0.24 | 0.17 | 0.10 |
| Total Shareholders' Equity | 6.38M | 4.61M | 2.61M |
| Common Stock | 25K | 25K | 25K |
| Retained Earnings | 6.32M | 4.63M | 2.63M |
| Treasury Stock | 0 | 0 | 0 |
| Accumulated OCI | 56.54K | -20.71K | -24.46K |
| Minority Interest | 0 | 0 | 0 |
Severe liquidity and concentration
According to recent financial disclosures, SDM's 121.80% year-over-year revenue growth trajectory appears to be outpacing its capital base, creating a structural imbalance where the firm's rapid expansion is not currently supported by a commensurate accumulation of liquid assets or retained earnings to buffer against potential volatility.
The aggressive top-line growth suggests a business model that is prioritizing market share acquisition over balance sheet fortification. This trajectory warrants caution, as the lack of historical data makes it difficult to determine if this growth is sustainable or merely a result of aggressive revenue recognition practices.
As reported in financial statements, the company maintains a precarious cash position of only $57,817 against $21.5M in annual revenue, which indicates that SDM operates with virtually no liquidity buffer to absorb unexpected shocks or delays in client payment cycles within its advertising services.
This extremely low cash-to-revenue ratio suggests that the company is highly dependent on the timely collection of accounts receivable to fund ongoing operations. Investors should monitor whether this liquidity profile forces management to seek dilutive financing or restricts their ability to fulfill large-scale project commitments.
Based on SDM's reported figures, the company maintains a minimal debt-to-equity ratio of 0.05%, which suggests that while the firm is not burdened by interest-bearing obligations, it may also lack the access to traditional credit markets necessary to support its high-velocity growth phase.
The absence of significant debt may reflect a strategic choice to avoid interest costs, but it could also imply that the company is unable to secure bank financing due to its thin margins and volatile cash flow. This reliance on internal funding sources appears to be a primary constraint on the company's operational flexibility.
Data from the latest balance sheet reveals that the company's reliance on project-based revenue, combined with a cash balance of just $57,817, creates a hidden risk where any disruption in the accounts receivable cycle could lead to an immediate and severe liquidity crisis for the firm.
The headline growth figures may be misleading if they do not account for the significant working capital requirements inherent in the advertising agency model. The lack of transparency regarding the aging of receivables suggests that the company's financial health may be more fragile than the top-line growth implies.
Quick answers to the most common questions about buying SDM stock.
As of 2024, Smart Digital Group Limited Ordinary Shares (SDM) had total assets of $13.5M including $12.8M in current assets.
Smart Digital Group Limited Ordinary Shares (SDM) carries total debt of $0.3M, offset by $0.1M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Smart Digital Group Limited Ordinary Shares (SDM) has total shareholders' equity (book value) of $6.4M ($0.24 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Smart Digital Group Limited Ordinary Shares (SDM) reported a current ratio of 1.85x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.