The firm's financial stability appears compromised, with a P/B ratio of 8.17 and a limited cash position of only $2.78 million that may be further restricted by performance bond requirements.
| Metric | Jun'24 | Jun'23 | Jun'22 | Jun'21 |
|---|
| Total Current Assets | 10.91M | 9.73M | 8.51M | 4.26M |
| Cash & Short-Term Investments | 2.78M | 2.15M | 2.88M | 748.26K |
| Cash Only | 2.78M | 2.15M | 2.88M | 748.26K |
| Short-Term Investments | 0 | 0 | 0 | 0 |
| Accounts Receivable | 1.13M | 464.51K | 3.07M | 3.12M |
| Days Sales Outstanding | 8.98 | 1.1 | 8.61 | 107.06 |
| Inventory | 0 | 0 | 0 | 0 |
| Days Inventory Outstanding | - | - | - | - |
| Other Current Assets | 5.35M | 5.21M | 32.48K | 24.84K |
| Total Non-Current Assets | 34.02M | 35.26M | 35.36M | 1.29M |
| Property, Plant & Equipment | 34.02M | 35.26M | 35.36M | 1.2M |
| Fixed Asset Turnover | 1.35x | 4.37x | 3.67x | 8.90x |
| Goodwill | 0 | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 | 0 |
| Long-Term Investments | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 0 | 0 | 0 | 96.4K |
| Total Assets | 44.93M | 44.99M | 43.87M | 5.55M |
| Asset Turnover | 1.02x | 3.43x | 2.96x | 1.92x |
| Asset Growth % | -0.13% | 2.56% | 690.66% | - |
| Total Current Liabilities | 14.46M | 13.13M | 7.28M | 7.77M |
| Accounts Payable | 411.22K | 410.93K | 4.01M | 4.27M |
| Days Payables Outstanding | 3.8 | 1.03 | 12.08 | 169.28 |
| Short-Term Debt | 10M | 10M | 0 | 0 |
| Deferred Revenue (Current) | 2.62M | 865.71K | 2.14M | 312.68K |
| Other Current Liabilities | 22.07K | 4.37K | 41.03K | 42.9K |
| Current Ratio | 0.75x | 0.74x | 1.17x | 0.55x |
| Quick Ratio | 0.75x | 0.74x | 1.17x | 0.55x |
| Cash Conversion Cycle | - | - | - | - |
| Total Non-Current Liabilities | 2.67M | 0 | 0 | 284.69K |
| Long-Term Debt | 2.2M | 0 | 0 | 0 |
| Capital Lease Obligations | 55.45K | 0 | 0 | 284.69K |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 414.4K | 0 | 0 | 0 |
| Total Liabilities | 17.13M | 13.13M | 7.28M | 8.06M |
| Total Debt | 12.44M | 10.29M | 284.69K | 852.87K |
| Net Debt | 9.65M | 8.13M | -2.59M | 104.61K |
| Debt / Equity | 0.45x | 0.32x | 0.01x | - |
| Debt / EBITDA | - | - | - | - |
| Net Debt / EBITDA | - | - | - | - |
| Interest Coverage | -6.58x | -24.39x | -27.93x | - |
| Total Equity | 27.81M | 31.86M | 36.59M | -2.51M |
| Equity Growth % | -12.72% | -12.93% | 1557.54% | - |
| Book Value per Share | 0.72 | 0.82 | 0.94 | -0.06 |
| Total Shareholders' Equity | 27.81M | 31.86M | 36.59M | -2.51M |
| Common Stock | 22.26K | 22.26K | 22.26K | 22.26K |
| Retained Earnings | -37.28M | -33.22M | -15.59M | -9.01M |
| Treasury Stock | 0 | 0 | 0 | 0 |
| Accumulated OCI | 23.16K | 20.21K | -254 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 |
Critical liquidity and solvency
As reported in recent financial filings, WETO maintains a cash balance of only $2.78 million, a figure that appears insufficient to support ongoing operations given the company's persistent negative operating margins and the high variable costs inherent in its asset-light transportation brokerage business model.
The limited cash position suggests that the company lacks a meaningful buffer against unexpected operational shocks or further revenue volatility. Investors should monitor whether this liquidity level is sufficient to meet short-term obligations or if the firm will be forced to pursue dilutive financing to maintain its current service levels.
Based on the company's reported financial figures, the balance sheet trajectory appears to be weakening, as the combination of a 70.19% year-over-year revenue decline and negative operating margins suggests that the firm is struggling to preserve its capital base while attempting to stabilize its core business.
The rapid contraction in top-line performance implies that the company's asset base may be losing its underlying value as institutional contracts expire or are not renewed. This trend warrants further investigation into whether the firm can achieve a sustainable scale before its remaining capital is fully exhausted.
According to regulatory disclosures, the reported $2.78 million in cash and equivalents may be misleading, as a portion of these funds could be held as restricted performance bonds for institutional contracts, potentially leaving the company with even less operational liquidity than the headline figures suggest.
This potential distortion makes the company's actual financial flexibility appear more precarious than a simple cash-to-debt analysis might indicate. Analysts should remain cautious, as the inability to access these funds for general corporate purposes could accelerate the need for external capital infusions.
Quick answers to the most common questions about buying WETO stock.
As of 2023, Webus International Limited Ordinary Shares (WETO) had total assets of $44.9M including $10.9M in current assets.
Webus International Limited Ordinary Shares (WETO) carries total debt of $12.4M, offset by $2.8M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Webus International Limited Ordinary Shares (WETO) has total shareholders' equity (book value) of $27.8M ($0.72 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Webus International Limited Ordinary Shares (WETO) reported a current ratio of 0.75x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.