The balance sheet remains a fortress with a minimal debt-to-equity ratio of 0.10 and a net cash position of $112.7M, though the cash buffer has eroded by 33.7% from its peak to fund operational losses.
STAAR Surgical Company (STAA) balance sheet — 30-year assets, liabilities & shareholders' equity history
| Metric | TTM | Jan'26 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Jan'21 | Jan'20 | Dec'18 | Dec'17 | Dec'16 | Jan'16 | Jan'15 | Jan'14 | Dec'12 | Dec'11 | Dec'10 | Jan'10 | Jan'09 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Jan'04 | Jan'03 | Dec'01 | Dec'00 | Dec'99 | Jan'99 | Jan'98 | Jan'97 |
|---|
| Total Current Assets | 342.35M | 311.55M | 367.94M | 365.27M | 311.72M | 271.41M | 216.42M | 174.67M | 151.57M | 53.89M | 49.91M | 49.07M | 44.9M | 50.08M | 44.07M | 38.65M | 29.99M | 40.41M | 32.27M | 32.29M | 29.29M | 34.27M | 32.58M | 27.61M | 21.27M | 35.8M | 45.47M | 43.6M | 41.1M | 35.4M | 28.7M |
| Cash & Short-Term Investments | 181.49M | 187.54M | 230.49M | 220.73M | 211.64M | 199.71M | 152.45M | 119.97M | 103.88M | 18.52M | 14M | 13.4M | 13.01M | 22.95M | 21.68M | 16.58M | 9.38M | 6.33M | 5.17M | 11.04M | 7.91M | 12.71M | 9.31M | 7.29M | 1.01M | 853K | 6.09M | 3.3M | 4.7M | 6.3M | 6.5M |
| Cash Only | 148.58M | 153.15M | 144.16M | 183.04M | 86.48M | 199.71M | 152.45M | 119.97M | 103.88M | 18.52M | 14M | 13.4M | 13.01M | 22.95M | 21.68M | 16.58M | 9.38M | 6.33M | 4.99M | 10.89M | 7.76M | 12.71M | 4.19M | 7.29M | 1.01M | 853K | 6.09M | 3.3M | 4.7M | 6.3M | 6.5M |
| Short-Term Investments | 32.91M | 34.39M | 86.33M | 37.69M | 125.16M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 179K | 150K | 150K | 0 | 5.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 102.06M | 54.61M | 79.26M | 97.98M | 65.97M | 46.56M | 35.23M | 32.58M | 25.95M | 17.85M | 16.34M | 15.68M | 11.05M | 10.73M | 8.54M | 9.09M | 8.22M | 9.27M | 8.42M | 6.9M | 6.52M | 5.1M | 6.22M | 5.52M | 5.99M | 9.94M | 12.64M | 11.5M | 11.6M | 11.3M | 6.8M |
| Days Sales Outstanding | 82.2 | 83.24 | 92.16 | 110.92 | 84.67 | 73.73 | 78.67 | 79.19 | 76.4 | 71.92 | 72.37 | 74.19 | 53.81 | 54.24 | 48.89 | 52.86 | 54.59 | 44.9 | 41.05 | 42.41 | 42.31 | 36.28 | 43.9 | 39.92 | 45.33 | 72.25 | 85.46 | 71.14 | 78.12 | 97.05 | 58.82 |
| Inventory | 46.84M | 55.5M | 43.3M | 35.13M | 24.16M | 17.27M | 18.11M | 17.14M | 16.7M | 13.31M | 14.82M | 15.92M | 15.72M | 12.51M | 11.67M | 10.93M | 10.54M | 14.82M | 16.67M | 12.74M | 12.94M | 14.7M | 15.08M | 12.8M | 11.76M | 15.23M | 20.81M | 22.3M | 20.1M | 14.7M | 12.4M |
| Days Inventory Outstanding | 232.2 | 355.23 | 212.68 | 183.8 | 144.55 | 121.64 | 146.58 | 163.66 | 187.92 | 184.5 | 224.87 | 238.16 | 219.26 | 208.51 | 218.58 | 195.65 | 193.55 | 161.7 | 174.89 | 154.52 | 158.22 | 194.98 | 215.55 | 206.57 | 178.13 | 197.12 | 336.07 | 435.27 | 520.32 | 789.04 | 572.91 |
| Other Current Assets | -3.58M | 8.04M | 980K | 6.98M | 811K | 636K | 4.53M | 453K | 2.07M | 1.83M | 2.41M | 2.23M | 3.12M | 1.72M | 204K | 129K | 133K | 7.4M | 2.01M | 280K | 468K | 0 | 0 | 0 | 0 | 7.3M | 5.94M | 6.5M | 4.7M | 3.1M | 3M |
| Total Non-Current Assets | 132.85M | 150.07M | 141.58M | 123.42M | 107.09M | 74.37M | 41M | 32.86M | 15.77M | 14.04M | 15.54M | 13.88M | 14.01M | 11.86M | 10.69M | 10.35M | 10.6M | 18.27M | 20.31M | 21.89M | 18.48M | 18.48M | 19.39M | 19.61M | 23.95M | 30M | 34.68M | 41.7M | 32.2M | 27M | 22.4M |
| Property, Plant & Equipment | 97.44M | 102.93M | 121.78M | 101.41M | 81.53M | 67.73M | 33.39M | 25.62M | 11.45M | 9.78M | 11.79M | 10.1M | 10.07M | 7.41M | 5.44M | 4.22M | 3.73M | 5M | 5.97M | 5.77M | 5.85M | 5.59M | 6.16M | 6.64M | 7.44M | 8.74M | 13.63M | 12.7M | 10.4M | 10M | 8.9M |
| Fixed Asset Turnover | 3.36x | 2.33x | 2.58x | 3.18x | 3.49x | 3.40x | 4.90x | 5.86x | 10.82x | 9.27x | 6.99x | 7.64x | 7.45x | 9.75x | 11.73x | 14.87x | 14.73x | 15.05x | 12.54x | 10.28x | 9.63x | 9.17x | 8.39x | 7.60x | 6.49x | 5.75x | 3.96x | 4.65x | 5.21x | 4.25x | 4.74x |
| Goodwill | 1.79M | 1.79M | 1.79M | 1.79M | 1.79M | 1.79M | 1.79M | 1.79M | 1.79M | 1.79M | 1.79M | 1.79M | 1.79M | 1.79M | 1.79M | 1.79M | 1.79M | 7.88M | 7.54M | 7.53M | 7.53M | 7.53M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 31.32M | 30.7M | 0 | 0 | 173K | 218K | 270K | 296K | 243K | 271K | 473K | 666K | 870K | 1.38M | 2.14M | 2.99M | 3.67M | 4.15M | 5.61M | 3.96M | 4.44M | 4.92M | 12.93M | 12.49M | 15.46M | 15.88M | 16.9M | 22.3M | 17M | 11.1M | 8.9M |
| Long-Term Investments | 0 | 0 | 0 | 11.7M | 13.9M | 0 | 0 | 0 | 122K | 121K | 119K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -282K | -102K | 0 | 0 | 0 | 0 | 0 | 500K | -1.76B | 0 | 3.2M | 2.7M | 2.5M |
| Other Non-Current Assets | 1.23M | 1.35M | 17.23M | 3.34M | 957K | 822K | 608K | 751K | 887K | 846K | 653K | 617K | 597K | 659K | 1.13M | 1.2M | 1.21M | 1.14M | 1.19M | 4.62M | 657K | 436K | 294K | 488K | 1.05M | 898K | 4.16M | 6.7M | 4.8M | 5.9M | 4.6M |
| Total Assets | 475.2M | 461.62M | 509.52M | 488.69M | 418.82M | 345.78M | 257.42M | 207.52M | 167.34M | 67.93M | 65.44M | 62.95M | 58.91M | 61.93M | 54.76M | 49.01M | 40.59M | 58.68M | 52.58M | 54.18M | 47.77M | 52.76M | 51.97M | 47.22M | 45.22M | 65.81M | 80.15M | 85.3M | 73.3M | 62.4M | 51.1M |
| Asset Turnover | 0.74x | 0.52x | 0.62x | 0.66x | 0.68x | 0.67x | 0.64x | 0.72x | 0.74x | 1.33x | 1.26x | 1.23x | 1.27x | 1.17x | 1.16x | 1.28x | 1.35x | 1.28x | 1.42x | 1.10x | 1.18x | 0.97x | 0.99x | 1.07x | 1.07x | 0.76x | 0.67x | 0.69x | 0.74x | 0.68x | 0.83x |
| Asset Growth % | -17.33% | -9.4% | 4.26% | 16.68% | 21.12% | 34.33% | 24.04% | 24.01% | 146.33% | 3.8% | 3.95% | 6.86% | -4.88% | 13.1% | 11.74% | 20.75% | -30.84% | 11.6% | -2.95% | 13.42% | -9.45% | 1.5% | 10.07% | 4.42% | -31.28% | -17.9% | -6.03% | 16.37% | 17.47% | 22.11% | 31.7% |
| Total Current Liabilities | 73.39M | 68.5M | 70.31M | 65.04M | 51.72M | 48.8M | 41.24M | 34.48M | 27.73M | 19.09M | 21.07M | 17.89M | 16.45M | 18.41M | 17.95M | 14.02M | 13.45M | 26.94M | 21.46M | 11.29M | 14.93M | 11.54M | 13.48M | 11.72M | 14.48M | 18.66M | 21.17M | 18M | 14.2M | 10.5M | 13.2M |
| Accounts Payable | 13.48M | 11.57M | 16.7M | 13.56M | 11.58M | 8.7M | 2.82M | 8.05M | 6.52M | 6.03M | 8.31M | 6.69M | 6.62M | 6.26M | 5.13M | 4.26M | 3.72M | 7.42M | 6.63M | 4.82M | 5.05M | 4.01M | 5.31M | 4.74M | 4.39M | 5.59M | 6.2M | 7.4M | 5M | 1.5M | 1.6M |
| Days Payables Outstanding | 48.52 | 74.09 | 82.04 | 70.93 | 69.26 | 61.25 | 22.8 | 76.86 | 73.4 | 83.63 | 126.07 | 100.09 | 92.35 | 104.35 | 96.04 | 76.25 | 68.24 | 80.92 | 69.52 | 58.49 | 61.81 | 53.24 | 75.92 | 76.47 | 66.55 | 72.38 | 100.12 | 144.44 | 129.43 | 80.51 | 73.92 |
| Short-Term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 1.38M | 1.83M | 3.78M | 4.44M | 4.28M | 4.16M | 4.15M | 4.75M | 5.85M | 2.58M | 2.46M | 6.66M | 3.19M | 822K | 2.3M | 1.68M | 3M | 2.95M | 5.84M | 8.22M | 7.94M | 2.7M | 2.3M | 1.6M | 8.2M |
| Deferred Revenue (Current) | 0 | 0 | 0 | 0 | 0 | 0 | 4.53M | 0 | 2.1M | 0 | 0 | 370K | 301K | 739K | 324K | 472K | 326K | 4.36M | 282K | 3.77M | 3.81M | 0 | 0 | 0 | 0 | 5.3M | 1.76B | 0 | 0 | 0 | 0 |
| Other Current Liabilities | 51.6M | 34.2M | 24.28M | 21.43M | 21.74M | 22.41M | 9.07M | 11.09M | 5.99M | 1.86M | 2.6M | 1.96M | 2.01M | 2.41M | 2.3M | 1.74M | 3.17M | 7.62M | 8.19M | 3.27M | 4.59M | 3.26M | 5.16M | 4.04M | 4.24M | 4.85M | 7.03M | 7.9M | 6.9M | 7.4M | 3.4M |
| Current Ratio | 4.66x | 4.55x | 5.23x | 5.62x | 6.03x | 5.56x | 5.25x | 5.07x | 5.47x | 2.82x | 2.37x | 2.74x | 2.73x | 2.72x | 2.46x | 2.76x | 2.23x | 1.50x | 1.50x | 2.86x | 1.96x | 2.97x | 2.42x | 2.35x | 1.47x | 1.92x | 2.15x | 2.42x | 2.89x | 3.37x | 2.17x |
| Quick Ratio | 4.03x | 3.74x | 4.62x | 5.08x | 5.56x | 5.21x | 4.81x | 4.57x | 4.86x | 2.13x | 1.67x | 1.85x | 1.77x | 2.04x | 1.81x | 1.98x | 1.45x | 0.95x | 0.73x | 1.73x | 1.10x | 1.70x | 1.30x | 1.26x | 0.66x | 1.10x | 1.17x | 1.18x | 1.48x | 1.97x | 1.23x |
| Cash Conversion Cycle | 265.89 | 364.39 | 222.81 | 223.79 | 159.97 | 134.12 | 202.45 | 165.99 | 190.93 | 172.79 | 171.18 | 212.26 | 180.71 | 158.39 | 171.43 | 172.26 | 179.9 | 125.69 | 146.41 | 138.44 | 138.72 | 178.02 | 183.53 | 170.02 | 156.91 | 196.98 | 321.42 | 361.97 | 469 | 805.58 | 557.8 |
| Total Non-Current Liabilities | 36.41M | 48.93M | 41.88M | 37.7M | 30.99M | 38.42M | 18.96M | 13.16M | 7.18M | 5.91M | 6.47M | 6.22M | 5.37M | 4.67M | 5.07M | 5.53M | 4.71M | 10.67M | 15.09M | 6.67M | 1.08M | 854K | 632K | 72K | 89K | 316K | 312.24K | 14.1M | 10.5M | 7.1M | 1.3M |
| Long-Term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -6.78M | 4.41M | 4.17M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 13.7M | 10M | 5.8M | 800K |
| Capital Lease Obligations | 127.24M | 32.48M | 34.81M | 31.47M | 27.35M | 28.65M | 6.58M | 4.45M | 459K | 531K | 1.34M | 204K | 468K | 141K | 488K | 1.12M | 1.4M | 1.1M | 1.33M | 1.31M | 957K | 116K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Tax Liabilities | 9.94M | 9.94M | 297K | 1.08M | 1.49M | 811K | 222K | 658K | 1.02M | 350K | 881K | 1.89M | 1.7M | 1.65M | 885K | 708K | 488K | 653K | 897K | 570K | 0 | 0 | 0 | 0 | 0 | 3.98M | 3.09B | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 6.56M | 6.42M | 6.78M | 5.16M | 2.15M | 8.96M | 12.16M | 8.05M | 5.7M | 5.03M | 4.25M | 4.13M | 3.27M | 2.87M | 3.69M | 3.7M | 2.82M | -4.65M | 7.55M | 619K | 122K | 738K | 632K | 72K | 89K | 316K | 312.24K | 400K | 500K | 1.3M | 0 |
| Total Liabilities | 109.81M | 117.44M | 112.19M | 102.74M | 82.71M | 87.22M | 60.19M | 47.64M | 34.91M | 25M | 27.54M | 24.11M | 21.81M | 23.08M | 23.02M | 19.55M | 18.16M | 37.61M | 36.55M | 17.95M | 16.01M | 12.39M | 14.11M | 11.8M | 14.57M | 18.98M | 21.48M | 32.1M | 24.7M | 17.6M | 14.5M |
| Total Debt | 35.94M | 38.35M | 38.74M | 35.83M | 31.04M | 32.06M | 10.8M | 9.54M | 5.34M | 6.25M | 6.82M | 4.72M | 5.02M | 5.18M | 7.17M | 4.3M | 4.29M | 8.56M | 8.94M | 6.3M | 3.26M | 1.68M | 3M | 2.95M | 5.84M | 8.22M | 7.94M | 16.4M | 12.3M | 7.4M | 9M |
| Net Debt | -112.64M | -114.8M | -105.42M | -147.2M | -55.44M | -167.65M | -141.65M | -110.43M | -98.54M | -12.27M | -7.18M | -8.68M | -8M | -17.77M | -14.51M | -12.28M | -5.08M | 2.23M | 3.95M | -4.6M | -4.5M | -11.03M | -1.18M | -4.34M | 4.84M | 7.36M | 1.86M | 13.1M | 7.6M | 1.1M | 2.5M |
| Debt / Equity | 0.10x | 0.11x | 0.10x | 0.09x | 0.09x | 0.12x | 0.05x | 0.06x | 0.04x | 0.15x | 0.18x | 0.12x | 0.14x | 0.13x | 0.23x | 0.15x | 0.19x | 0.41x | 0.56x | 0.17x | 0.10x | 0.04x | 0.08x | 0.08x | 0.19x | 0.18x | 0.14x | 0.31x | 0.25x | 0.17x | 0.25x |
| Debt / EBITDA | 0.82x | - | - | 1.08x | 0.64x | 0.87x | 1.09x | 0.61x | 0.59x | - | - | - | - | 1.82x | 9.67x | 0.85x | - | 611.14x | - | - | - | - | - | - | - | - | - | 2.00x | 1.12x | 0.58x | 0.73x |
| Net Debt / EBITDA | -2.56x | - | - | -4.43x | -1.15x | -4.53x | -14.36x | -7.10x | -10.88x | - | - | - | - | -6.23x | -19.58x | -2.43x | - | 159.00x | - | - | - | - | - | - | - | - | - | 1.60x | 0.69x | 0.09x | 0.20x |
| Interest Coverage | - | - | - | - | - | 824.79x | - | - | - | -32.42x | -110.04x | -42.79x | -34.66x | 7.55x | -0.78x | 6.17x | -3.11x | -3.33x | -23.05x | - | - | - | - | - | - | - | - | - | - | - | - |
| Total Equity | 365.4M | 344.18M | 397.33M | 385.95M | 336.11M | 258.56M | 197.22M | 159.88M | 132.43M | 42.94M | 37.91M | 38.85M | 37.1M | 38.85M | 31.74M | 29.46M | 22.43M | 21.07M | 16.03M | 36.23M | 31.76M | 40.37M | 37.86M | 35.42M | 30.65M | 46.83M | 58.67M | 53.2M | 48.6M | 44.8M | 36.6M |
| Equity Growth % | -21.49% | -13.38% | 2.95% | 14.83% | 29.99% | 31.1% | 23.35% | 20.73% | 208.43% | 13.27% | -2.42% | 4.71% | -4.51% | 22.4% | 7.75% | 31.35% | 6.44% | 31.47% | -55.76% | 14.06% | -21.32% | 6.61% | 6.89% | 15.57% | -34.55% | -20.18% | 10.28% | 9.46% | 8.48% | 22.4% | 27.53% |
| Book Value per Share | 7.09 | 6.94 | 8.09 | 7.81 | 6.81 | 5.23 | 4.11 | 3.41 | 2.93 | 1.05 | 0.94 | 0.99 | 0.97 | 1.01 | 0.88 | 0.80 | 0.64 | 0.65 | 0.54 | 1.29 | 1.26 | 1.70 | 1.93 | 2.00 | 1.79 | 2.75 | 3.82 | 3.63 | 3.44 | 3.21 | 2.65 |
| Total Shareholders' Equity | 365.4M | 344.18M | 397.33M | 385.95M | 336.11M | 258.56M | 197.22M | 159.88M | 132.43M | 42.94M | 37.91M | 38.85M | 37.1M | 38.85M | 31.74M | 29.46M | 22.43M | 21.07M | 16.03M | 36.23M | 31.76M | 40.37M | 37.84M | 35.22M | 30.55M | 46.45M | 58.46M | 52.7M | 47.7M | 44.8M | 36.6M |
| Common Stock | 505K | 498K | 493K | 488K | 482K | 477K | 464K | 448K | 442K | 414K | 407K | 399K | 384K | 379K | 364K | 361K | 351K | 348K | 295K | 295K | 256K | 248K | 207K | 184K | 172K | 172K | 169.49K | 100K | 100K | 100K | 100K |
| Retained Earnings | -134.76M | -148.02M | -67.58M | -47.37M | -68.72M | -111.39M | -135.89M | -141.8M | -156.28M | -161.25M | -159.11M | -146.98M | -140.45M | -132.06M | -132.45M | -130.69M | -132.04M | -132.09M | -125.89M | -102.7M | -86.7M | -71.65M | -60.48M | -49.15M | -41.42M | -24.26M | -9.43M | 9.5M | 7.3M | 4.9M | -2.6M |
| Treasury Stock | -6.46M | -6.46M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -972K | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | -6.97M | -6.51M | -7.03M | -4.11M | 156K | -4.05M | -5.54M | -3.05M | -1.32M | -1.15M | -1.05M | -1.58M | -1.07M | 282K | 1.58M | 2.4M | 2.1M | 3.25M | 2.81M | 1.55M | 889K | -663K | -580K | -1.77M | -3.17M | -5.04M | -7.32M | -8.2M | -1M | -1.4M | -8.3M |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 22K | 204K | 100K | 382K | 203.92K | 500K | 900K | 0 | 0 |
Quick answers to the most common questions about buying STAA stock.
As of 2025, STAAR Surgical Company (STAA) had total assets of $461.6M including $311.5M in current assets.
STAAR Surgical Company (STAA) carries total debt of $38.4M, offset by $187.5M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
STAAR Surgical Company (STAA) has total shareholders' equity (book value) of $344.2M ($6.94 book value per share). Book value represents the net worth of the company belonging to common stock holders.
STAAR Surgical Company (STAA) reported a current ratio of 4.55x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.
Key Metrics
Top Statement Risk
China demand volatility
Metrics are mathematically derived from official filings.
Asset Base Eroding Amid Operational Losses
Total assets have contracted by 12.4% from a peak of $537.6M in Q3 2024 to $475.2M in Q2 2026, driven by a significant decline in cash and PPE, which suggests the company is liquidating assets to fund ongoing operational losses.
The balance sheet trajectory is clearly weakening, with the asset base shrinking for six consecutive quarters. This erosion is primarily fueled by the consumption of cash reserves to cover negative operating margins, as evidenced by the $75.4M decline in cash from Q3 2024 to Q2 2026. The concurrent reduction in net PPE from $119.5M to $97.4M indicates a lack of reinvestment, signaling that management is prioritizing liquidity preservation over growth-oriented capital expenditure.
Cash Burn Eroding a Once-Deep Buffer
While the current ratio remains exceptionally strong at 4.66, the cash position has fallen from $224.0M in Q1 2024 to $148.6M in Q2 2026, a 33.7% decline that indicates the company is drawing down its fortress balance sheet to fund losses.
The liquidity profile is a tale of two metrics: the headline current ratio is robust, but the underlying cash trend is concerning. The $75.4M reduction in cash over the past eight quarters represents a significant burn rate, directly tied to the negative operating margins reported in the income statement. While the company remains liquid, the pace of cash consumption suggests that without a return to profitability or a capital raise, the operational runway is finite.
Accumulated Deficit Deepens Equity Erosion
Retained earnings have deteriorated from -$33.3M in Q3 2024 to -$134.8M in Q2 2026, a $101.5M increase in accumulated losses that directly explains the decline in total equity despite minimal debt.
The equity base is being hollowed out by persistent net losses, with the accumulated deficit now representing over a third of total equity. This trend is a direct consequence of the company's negative operating and net margins, which have been consuming shareholder capital. The lack of share repurchases or significant dilutive events means the equity erosion is purely a function of operational performance, making a return to profitability critical to stabilizing the balance sheet.
Minimal Leverage Provides Strategic Flexibility
With a debt-to-equity ratio of just 0.10 and total debt of $35.9M against $148.6M in cash, STAAR maintains a net cash position of $112.7M, providing a substantial buffer against financial distress.
The company's leverage profile is a key strength, with negligible debt and a significant net cash position. This conservative structure appears to be a deliberate strategic choice, providing the financial flexibility to weather the current demand downturn without the pressure of debt covenants or refinancing risk. However, the low debt level also suggests limited use of leverage to fund growth, which may be appropriate given the current negative operating margins.
Hidden Risk in Deferred Revenue and Inventory
The negligible deferred revenue balance of $89K, despite a consignment model and international distributor sales, raises questions about the accuracy of revenue recognition and potential channel stuffing risks.
The most non-obvious balance sheet risk lies in the interplay between the company's revenue recognition practices and its inventory management. The minimal deferred revenue suggests that revenue is recognized upfront upon shipment to distributors, which can mask underlying demand weakness if inventory is building in the channel. This creates a potential distortion where reported revenue may not reflect actual surgical implant volumes, a risk that warrants close monitoring of inventory turnover and distributor sell-through data.