The company's financial position shows significant deterioration, with retained earnings shifting from a positive $4.1 million in 2022Q4 to a $14.2 million deficit by 2025Q4.
Zhongchao Inc. (ZCMD) balance sheet — 9-year assets, liabilities & shareholders' equity history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Total Current Assets | 18.51M | 16.96M | 18.71M | 18.71M | 22.7M | 27.25M | 29.32M | 13.86M | 12.52M | 6.41M |
| Cash & Short-Term Investments | 17.34M | 13.92M | 13.08M | 13.45M | 12.04M | 14.21M | 17.11M | 7.83M | 9.08M | 4.8M |
| Cash Only | 9.75M | 8.1M | 7.84M | 7.55M | 11.52M | 13.91M | 15.07M | 7.83M | 7.92M | 2.98M |
| Short-Term Investments | 7.6M | 5.82M | 5.24M | 5.9M | 518.42K | 296.16K | 2.03M | 0 | 1.16M | 1.82M |
| Accounts Receivable | 933.89K | 2.88M | 4.78M | 3.02M | 9.13M | 12.35M | 10.35M | 5.17M | 1.99M | 1.3M |
| Days Sales Outstanding | - | 92.48 | 109.98 | 56.64 | 235.58 | 276.62 | 210.08 | 126.68 | 56.55 | 48.41 |
| Inventory | 0 | 0 | 586.22K | 592.38K | 189.11K | 0 | 0 | 0 | 0 | 0 |
| Days Inventory Outstanding | 5.09 | - | 30.78 | 19.8 | 8.86 | - | - | - | - | - |
| Other Current Assets | 234.43K | 133.74K | 142.42K | 153.19K | 70.4K | 47.26K | 180.45K | 88.43K | 77.43K | 63.12K |
| Total Non-Current Assets | 7.03M | 7.35M | 7.18M | 5.71M | 15.91M | 9.01M | 5.49M | 3.88M | 1.53M | 566.53K |
| Property, Plant & Equipment | 5.82M | 5.9M | 5.96M | 4.02M | 5.8M | 4.31M | 2.06M | 2.14M | 669.9K | 53.34K |
| Fixed Asset Turnover | 0.00x | 1.93x | 2.66x | 4.84x | 2.44x | 3.78x | 8.72x | 6.97x | 19.21x | 184.05x |
| Goodwill | 0 | 0 | 0 | 0 | 5.77M | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 0 | 7.61K | 12.18K | 17.54K | 1.22M | 383.61K | 34.97K | 37.32K | 44.05K | 51.76K |
| Long-Term Investments | 4.71M | 1.23M | 1.09M | 1.31M | 1.26M | 2.14M | 1.26M | 0 | 0 | 0 |
| Other Non-Current Assets | 41.18K | 0 | 0 | 0 | 0 | 0 | 1.34M | 1.02M | 438.42K | 0 |
| Total Assets | 25.54M | 24.32M | 25.88M | 24.42M | 38.61M | 36.27M | 34.82M | 17.74M | 14.05M | 6.98M |
| Asset Turnover | 0.00x | 0.47x | 0.61x | 0.80x | 0.37x | 0.45x | 0.52x | 0.84x | 0.92x | 1.41x |
| Asset Growth % | 6.51% | -6.06% | 6.01% | -36.77% | 6.47% | 4.17% | 96.28% | 26.28% | 101.35% | - |
| Total Current Liabilities | 426.99K | 1.53M | 1.53M | 2.68M | 4.17M | 3.59M | 2.98M | 2.36M | 2.33M | 1.56M |
| Accounts Payable | 205.98K | 526.1K | 535.07K | 683.94K | 140.83K | 38.93K | 408.43K | 117.06K | 23.63K | 582.13K |
| Days Payables Outstanding | 19.21 | 29.35 | 28.09 | 22.86 | 6.59 | 2.07 | 24.37 | 9.18 | 1.94 | 53.52 |
| Short-Term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 62.16K | 210.22K | 727.22K | 0 |
| Deferred Revenue (Current) | 1.1M | 150.01K | 203.79K | 838.84K | 395.26K | 7.43K | 6.76K | 73.96K | 553.41K | 712.67K |
| Other Current Liabilities | 221K | 66.13K | 112.24K | 50.74K | 95.59K | 57.19K | 822.08K | 889.71K | 619.35K | 149.52K |
| Current Ratio | 43.35x | 11.11x | 12.22x | 6.99x | 5.45x | 7.59x | 9.83x | 5.88x | 5.36x | 4.10x |
| Quick Ratio | 43.35x | 11.11x | 11.84x | 6.76x | 5.41x | 7.59x | 9.83x | 5.88x | 5.36x | 4.10x |
| Cash Conversion Cycle | -14.12 | - | 112.67 | 53.58 | 237.84 | - | - | - | - | - |
| Total Non-Current Liabilities | 41.67K | 191.44K | 203.47K | 700.11K | 1.43M | 112.59K | 0 | 41.36K | 0 | 0 |
| Long-Term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 41.36K | 0 | 0 |
| Capital Lease Obligations | 23.83K | 0 | 23.83K | 571.86K | 1.22M | 112.59K | 0 | 41.36K | 0 | 0 |
| Deferred Tax Liabilities | 626.83K | 191.44K | 179.64K | 128.25K | 208.2K | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 | 0 | 0 | -1 | 0 | -41.36K | 0 | 0 |
| Total Liabilities | 468.66K | 1.72M | 1.73M | 3.38M | 5.6M | 3.7M | 2.98M | 2.4M | 2.33M | 1.56M |
| Total Debt | 0 | 26.08K | 57.52K | 808.16K | 1.7M | 201.56K | 62.16K | 292.94K | 727.22K | 0 |
| Net Debt | -9.75M | -8.07M | -7.78M | -6.74M | -9.82M | -13.71M | -15.01M | -7.54M | -7.19M | -2.98M |
| Debt / Equity | 0.00x | 0.00x | 0.00x | 0.04x | 0.05x | 0.01x | 0.00x | 0.02x | 0.06x | - |
| Debt / EBITDA | -0.00x | - | 0.66x | - | - | 0.53x | 0.01x | 0.08x | 0.22x | - |
| Net Debt / EBITDA | 0.96x | - | -89.38x | - | - | -35.88x | -3.07x | -1.94x | -2.18x | -2.80x |
| Interest Coverage | - | - | - | - | - | - | - | - | - | - |
| Total Equity | 25.07M | 22.6M | 24.15M | 21.04M | 33.02M | 32.57M | 31.83M | 15.34M | 11.39M | 5.2M |
| Equity Growth % | 28.57% | -6.43% | 14.8% | -36.29% | 1.39% | 2.3% | 107.54% | 34.72% | 119.05% | - |
| Book Value per Share | 456.16 | 614.81 | 3451.63 | 6012.62 | 9450.28 | 9715.52 | 9499.89 | 4453.70 | 3381.46 | 1543.69 |
| Total Shareholders' Equity | 21.14M | 18.63M | 20.84M | 18.01M | 29.93M | 32.57M | 31.83M | 15.39M | 11.41M | 5.21M |
| Common Stock | 6 | 30.89K | 25.39K | 2.61K | 2.6K | 2.5K | 2.49K | 2.16K | 2.16K | 2.02K |
| Retained Earnings | -19.48M | -14.19M | -7.96M | -7.27M | 4.12M | 7.18M | 7.34M | 3.27M | -384.31K | -3.38M |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | 211.94K | -1.69M | -287.27K | 138.27K | 803.19K | 2.4M | 1.72M | 71.04K | -150.63K | 208.35K |
| Minority Interest | 3.94M | 3.97M | 3.31M | 3.03M | 3.09M | 0 | 0 | -46.62K | -27.84K | -10K |
Quick answers to the most common questions about buying ZCMD stock.
As of 2025, Zhongchao Inc. (ZCMD) had total assets of $24.3M including $17.0M in current assets.
Zhongchao Inc. (ZCMD) carries total debt of $0.0M, offset by $13.9M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Zhongchao Inc. (ZCMD) has total shareholders' equity (book value) of $18.6M ($614.81 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Zhongchao Inc. (ZCMD) reported a current ratio of 11.11x. 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
Capital erosion and burn
Asset Base Shrinking Amid Contraction
According to recent financial filings, ZCMD's total assets have declined from $38.6 million in 2022Q4 to $24.3 million by 2025Q4, reflecting a persistent contraction in the company's resource base as it struggles to maintain its market position within the competitive Chinese healthcare information services sector.
The steady reduction in total assets suggests that the company is not reinvesting in growth, but rather consuming its existing capital to cover ongoing operational deficits. This downward trajectory in asset value appears to mirror the company's inability to stabilize its revenue base, signaling a potential long-term erosion of business quality.
Cash Runway Facing Structural Pressure
Based on reported figures, ZCMD maintains a cash position of $8.1 million as of 2025Q4, which, while providing a nominal buffer, must be viewed against the backdrop of consistent net losses that continue to deplete the company's liquid reserves over successive reporting periods.
While the current ratio of 11.11 suggests high short-term liquidity, this metric is likely distorted by the company's small scale and lack of significant current liabilities rather than an abundance of operational cash. Investors should monitor whether this cash cushion remains sufficient to fund the business if the current negative operating margin trend persists.
Retained Earnings Reflect Value Destruction
As reported in financial statements, ZCMD's retained earnings have deteriorated significantly, shifting from a positive $4.1 million in 2022Q4 to a deficit of $14.2 million by 2025Q4, illustrating the cumulative impact of sustained operational losses on the company's total equity base.
The rapid transition into a substantial retained earnings deficit indicates that the company has failed to generate profitable growth, effectively eroding shareholder value over the last three years. This trend suggests that the current equity structure is increasingly supported by historical capital rather than internally generated profits.
Hidden Risks in Asset Composition
Based on an analysis of the balance sheet, ZCMD's $5.9 million in net PPE represents a significant portion of total assets, which warrants further investigation given the company's service-oriented business model and the potential for impairment if these assets do not support future revenue generation.
The concentration of capital in PPE for a firm that primarily provides digital medical education services appears counterintuitive and may indicate that these assets are not contributing effectively to top-line growth. If these assets are tied to physical event infrastructure, they may represent a rigid cost structure that limits the company's ability to pivot toward more scalable, asset-light digital solutions.