STAK maintains a conservative debt-to-equity ratio of 0.42%, which appears to be a necessity-driven constraint rather than a strategic choice given the firm's limited access to capital.
| Metric | Jun'24 | Jun'23 | Jun'22 |
|---|
| Total Current Assets | 15.3M | 11.84M | 4.82M |
| Cash & Short-Term Investments | 658.15K | 593.2K | 31.91K |
| Cash Only | 658.15K | 593.2K | 31.91K |
| Short-Term Investments | 0 | 0 | 0 |
| Accounts Receivable | 4.28M | 4.33M | 858.56K |
| Days Sales Outstanding | 82.49 | 74.81 | 38.54 |
| Inventory | 8.28M | 6.18M | 3.2M |
| Days Inventory Outstanding | 228.24 | 156.87 | 224.86 |
| Other Current Assets | 629.63K | 175.25K | 29.86K |
| Total Non-Current Assets | 3.49M | 3.16M | 3.02M |
| Property, Plant & Equipment | 2.62M | 2.93M | 2.99M |
| Fixed Asset Turnover | 7.22x | 7.23x | 2.72x |
| Goodwill | 0 | 0 | 0 |
| Intangible Assets | 62.24K | 67.4K | 0 |
| Long-Term Investments | 0 | 0 | 0 |
| Other Non-Current Assets | 297.7K | 0 | 0 |
| Total Assets | 18.78M | 15M | 7.83M |
| Asset Turnover | 1.01x | 1.41x | 1.04x |
| Asset Growth % | 25.2% | 91.5% | - |
| Total Current Liabilities | 8.08M | 6.88M | 6.55M |
| Accounts Payable | 746.13K | 3.3M | 4.86M |
| Days Payables Outstanding | 20.56 | 83.83 | 341.76 |
| Short-Term Debt | 4.33M | 1.54M | 219.47K |
| Deferred Revenue (Current) | 0 | 384.53K | 98.39K |
| Other Current Liabilities | 38.97K | 1.65K | 1.15K |
| Current Ratio | 1.89x | 1.72x | 0.74x |
| Quick Ratio | 0.87x | 0.82x | 0.25x |
| Cash Conversion Cycle | 290.17 | 147.85 | -78.35 |
| Total Non-Current Liabilities | 116.96K | 0 | 149 |
| Long-Term Debt | 116.96K | 0 | 0 |
| Capital Lease Obligations | 0 | 0 | 149 |
| Deferred Tax Liabilities | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 |
| Total Liabilities | 8.2M | 6.88M | 6.55M |
| Total Debt | 4.45M | 1.58M | 324.31K |
| Net Debt | 3.79M | 985.34K | 292.4K |
| Debt / Equity | 0.42x | 0.19x | 0.25x |
| Debt / EBITDA | 1.41x | 0.39x | 0.17x |
| Net Debt / EBITDA | 1.20x | 0.25x | 0.15x |
| Interest Coverage | 22.15x | 69.39x | 556.15x |
| Total Equity | 10.58M | 8.12M | 1.28M |
| Equity Growth % | 30.3% | 534.23% | - |
| Book Value per Share | 0.94 | 0.72 | 0.11 |
| Total Shareholders' Equity | 10.58M | 8.12M | 1.28M |
| Common Stock | 10K | 10K | 10K |
| Retained Earnings | 6.04M | 3.84M | 729.1K |
| Treasury Stock | 0 | 0 | 0 |
| Accumulated OCI | 283.86K | 68.84K | 1.53K |
| Minority Interest | 0 | 0 | 0 |
Liquidity and concentration risk
As reported in financial statements, STAK's balance sheet trajectory appears increasingly fragile, with a 10.53% year-over-year revenue decline suggesting that the company's asset base is failing to generate sufficient reinvestment capital to offset the cyclical downturn in Chinese onshore oilfield maintenance demand.
The combination of shrinking top-line revenue and a lack of disclosed liquidity buffers suggests that the company's financial position is weakening. Investors should monitor whether this trajectory forces a shift toward more aggressive debt financing or if the firm remains constrained by its current capital structure.
Based on reported figures, STAK maintains a conservative debt-to-equity ratio of 0.42%, which suggests that while the company avoids interest rate sensitivity, its low leverage may be a necessity-driven constraint rather than a strategic choice given the limited access to external capital markets.
The minimal debt load appears to provide a buffer against interest expense volatility, yet it also implies that the company lacks the financial flexibility to leverage its balance sheet for growth. This reliance on internal cash flow, which is currently under pressure, warrants further investigation into the firm's long-term solvency.
According to recent SEC filings, STAK's cash reserves of only $658,154 against $18.9M in revenue indicate a highly vulnerable liquidity profile that leaves the company with virtually no margin for error in managing its working capital or funding unexpected operational disruptions.
This extremely low cash balance suggests that the company is highly dependent on the timely collection of receivables from its state-owned customers. Any delay in payment cycles could lead to immediate liquidity stress, potentially forcing the company to seek dilutive financing or parent-company support.
As indicated by the company's financial snapshot, the most non-obvious risk is the potential for significant distortion in reported assets due to extended payment cycles from SOE-linked customers, which may be masking a deterioration in the actual quality of the company's current assets.
The reliance on contract assets and accounts receivable in a slowing revenue environment suggests that the balance sheet may be overstating the firm's true liquidity. Investors should be wary that these assets may not be as readily convertible to cash as the headline figures might imply.
Quick answers to the most common questions about buying STAK stock.
As of 2023, STAK Inc. Ordinary Shares (STAK) had total assets of $18.8M including $15.3M in current assets.
STAK Inc. Ordinary Shares (STAK) carries total debt of $4.5M, offset by $0.7M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
STAK Inc. Ordinary Shares (STAK) has total shareholders' equity (book value) of $10.6M ($0.94 book value per share). Book value represents the net worth of the company belonging to common stock holders.
STAK Inc. Ordinary Shares (STAK) reported a current ratio of 1.89x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.