Financial flexibility is supported by a minimal 0.15% debt-to-equity ratio, though the $868M cash position may be overstated due to potential legacy liabilities.
| Metric | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 |
|---|
| Total Current Assets | 1.47B | 1.34B | 1.48B | 957.3M | 761.08M | 692.83M |
| Cash & Short-Term Investments | 897.81M | 525.14M | 439.29M | 108.36M | 17.2M | 11.03M |
| Cash Only | 868.91M | 525.14M | 439.29M | 108.36M | 17.2M | 11.03M |
| Short-Term Investments | 28.9M | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 448.63M | 630.48M | 720.16M | 725.47M | 599.65M | 586.4M |
| Days Sales Outstanding | 78.28 | 118.49 | 143.29 | 206.09 | 190.89 | 185.89 |
| Inventory | 0 | 177.07M | 308.1M | 121.7M | 0 | 0 |
| Days Inventory Outstanding | - | 61.3 | 112.11 | 62.68 | - | - |
| Other Current Assets | 95.01M | 3.14M | 2.95M | -39.9M | 94.08M | 47.4M |
| Total Non-Current Assets | 903.69M | 441.35M | 53.41M | 67.93M | 73.78M | 71.71M |
| Property, Plant & Equipment | 535.99M | 325.11M | 21.1M | 34.12M | 42.8M | 51.68M |
| Fixed Asset Turnover | 3.90x | 5.97x | 86.92x | 37.66x | 26.79x | 22.28x |
| Goodwill | 257.71M | 75.19M | 0 | 0 | 0 | 0 |
| Intangible Assets | 98.6M | 33.55M | 24.23M | 29.42M | 22.06M | 15.14M |
| Long-Term Investments | 1M | 1M | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 9.66M | 5.77M | 7.43M | 1.81M | 7.08M | 3.83M |
| Total Assets | 2.37B | 1.78B | 1.53B | 1.03B | 834.87M | 764.54M |
| Asset Turnover | 0.88x | 1.09x | 1.20x | 1.25x | 1.37x | 1.51x |
| Asset Growth % | 33.09% | 16.53% | 49.28% | 22.8% | 9.2% | - |
| Total Current Liabilities | 1.01B | 779.81M | 795.86M | 502.69M | 387.53M | 228.31M |
| Accounts Payable | 3.33M | 0 | 0 | 0 | 0 | 0 |
| Days Payables Outstanding | 0.99 | - | - | - | - | - |
| Short-Term Debt | 0 | 2M | 0 | 0 | 6.98M | 3.29M |
| Deferred Revenue (Current) | 39.81M | 0 | 0 | 0 | 0 | 0 |
| Other Current Liabilities | 94.91M | 144.8M | 258.83M | 93.98M | 104.98M | 52.27M |
| Current Ratio | 1.46x | 1.72x | 1.86x | 1.90x | 1.96x | 3.03x |
| Quick Ratio | 1.46x | 1.49x | 1.47x | 1.66x | 1.96x | 3.03x |
| Cash Conversion Cycle | - | - | - | - | - | - |
| Total Non-Current Liabilities | 121.08M | 4.69M | 13.63M | 22.28M | 56.15M | 48.59M |
| Long-Term Debt | 0 | 0 | 0 | 0 | 0 | 0 |
| Capital Lease Obligations | 100.52M | 0 | 0 | 0 | 0 | 0 |
| Deferred Tax Liabilities | 20.03M | 3.4M | 3.55M | 3.96M | 2.23M | 2.13M |
| Other Non-Current Liabilities | 526K | 1.29M | 10.08M | 18.32M | 53.93M | 46.45M |
| Total Liabilities | 1.13B | 784.5M | 809.49M | 524.97M | 443.68M | 276.89M |
| Total Debt | 184.09M | 2M | 0 | 0 | 6.98M | 3.29M |
| Net Debt | -684.81M | -523.14M | -439.29M | -108.36M | -10.21M | -7.74M |
| Debt / Equity | 0.15x | 0.00x | - | - | 0.02x | 0.01x |
| Debt / EBITDA | 0.73x | 0.01x | - | - | 0.05x | 0.03x |
| Net Debt / EBITDA | -2.72x | -1.47x | -1.43x | -0.58x | -0.07x | -0.06x |
| Interest Coverage | - | - | - | - | - | - |
| Total Equity | 1.24B | 998.91M | 720.93M | 500.26M | 391.19M | 487.64M |
| Equity Growth % | 24.46% | 38.56% | 44.11% | 27.88% | -19.78% | - |
| Book Value per Share | 85.77 | 68.91 | 53.85 | 35.73 | 27.94 | 34.83 |
| Total Shareholders' Equity | 1.11B | 968.31M | 720.93M | 500.26M | 391.19M | 487.64M |
| Common Stock | 36K | 36K | 36K | 34K | 34K | 34K |
| Retained Earnings | 451.01M | 348.5M | 135.6M | -47.06M | -137.65M | -41.84M |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | 144.98M | 109.38M | 82.24M | 46.7M | 34.78M | 30.23M |
| Minority Interest | 131.53M | 30.6M | 0 | 0 | 0 | 0 |
Legacy liability and pivot risk
According to recent financial disclosures, Santech Holdings Limited maintains a robust $868M cash position, which serves as a critical liquidity buffer during its ongoing transition from legacy wealth management services to a technology-focused retail and metaverse business model, despite the inherent uncertainties of this strategic pivot.
The significant cash pile suggests the company possesses the necessary capital to fund its operational restructuring and R&D requirements without immediate reliance on external financing. However, investors should monitor whether this liquidity is truly available for growth initiatives or if it remains partially restricted to address potential legacy obligations from the Hywin era.
Based on reported figures, the company maintains a very low debt-to-equity ratio of 0.15%, indicating that management has successfully avoided reliance on debt financing during its radical business model transformation, which provides a significant degree of financial flexibility in a volatile regulatory environment.
This conservative capital structure appears to be a deliberate strategy to insulate the firm from interest rate volatility and credit market tightening. By minimizing debt, the company preserves its balance sheet strength, which may be essential for navigating the high-cost environment associated with scaling new technology platforms.
As reported in financial statements, the headline $868M cash position may be misleading, as it does not explicitly account for potential off-balance-sheet liabilities or redemption claims stemming from the firm's former identity as Hywin Holdings, which warrants extreme caution regarding the true net asset value.
The lack of transparency regarding legacy litigation risks suggests that the reported cash balance might overstate the company's actual financial health. Analysts should consider the possibility that a portion of these assets could be earmarked for settlement costs, which would directly impact the capital available for future technology investments.
Based on the company's reported figures, the balance sheet appears to be in a state of transition, where the preservation of capital is prioritized over aggressive asset expansion, reflecting a defensive posture as the firm attempts to re-rate as a technology entity within the Chinese market.
The trajectory of the balance sheet suggests that management is focused on maintaining a fortress-like liquidity position to survive the initial phases of its pivot. Whether this strength translates into long-term business quality depends on the successful conversion of these liquid assets into proprietary technology and sustainable revenue streams.
Quick answers to the most common questions about buying STEC stock.
As of 2022, Santech Holdings Limited (STEC) had total assets of $2.37B including $1.47B in current assets.
Santech Holdings Limited (STEC) carries total debt of $184.1M, offset by $897.8M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Santech Holdings Limited (STEC) has total shareholders' equity (book value) of $1.11B ($85.77 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Santech Holdings Limited (STEC) reported a current ratio of 1.46x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.