ZGM maintains a conservative 0.00% debt-to-equity ratio, though this lack of leverage may limit the company's flexibility to fund large-scale infrastructure investments.
| Metric | Sep'24 | Sep'23 | Sep'22 |
|---|
| Total Current Assets | 1.99M | 548.18K | 174.79K |
| Cash & Short-Term Investments | 327.11K | 524.38K | 52.9K |
| Cash Only | 327.11K | 524.38K | 52.9K |
| Short-Term Investments | 0 | 0 | 0 |
| Accounts Receivable | 1.64M | 20 | 104.41K |
| Days Sales Outstanding | 295.52 | 0.01 | 221.84 |
| Inventory | 0 | 0 | 0 |
| Days Inventory Outstanding | - | - | - |
| Other Current Assets | 0 | 0 | 0 |
| Total Non-Current Assets | 1.68M | 251.22K | 21.98K |
| Property, Plant & Equipment | 10.23K | 91.64K | 21.93K |
| Fixed Asset Turnover | 198.31x | 9.41x | 7.83x |
| Goodwill | 0 | 0 | 0 |
| Intangible Assets | 1.09M | 0 | 0 |
| Long-Term Investments | 0 | 0 | 0 |
| Other Non-Current Assets | 574.87K | 159.47K | 0 |
| Total Assets | 3.67M | 799.4K | 196.78K |
| Asset Turnover | 0.55x | 1.08x | 0.87x |
| Asset Growth % | 359.45% | 306.24% | - |
| Total Current Liabilities | 2.02M | 215.33K | 313.48K |
| Accounts Payable | 154.24K | 0 | 0 |
| Days Payables Outstanding | 120.79 | - | - |
| Short-Term Debt | 0 | 0 | 0 |
| Deferred Revenue (Current) | 0 | 0 | 0 |
| Other Current Liabilities | 113.38K | 0 | 0 |
| Current Ratio | 0.99x | 2.55x | 0.56x |
| Quick Ratio | 0.99x | 2.55x | 0.56x |
| Cash Conversion Cycle | - | - | - |
| Total Non-Current Liabilities | 0 | 6.84K | 0 |
| Long-Term Debt | 0 | 0 | 0 |
| Capital Lease Obligations | 0 | 6.84K | 0 |
| Deferred Tax Liabilities | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 |
| Total Liabilities | 2.02M | 222.17K | 313.48K |
| Total Debt | 6.89K | 87.63K | 22.37K |
| Net Debt | -320.22K | -436.76K | -30.53K |
| Debt / Equity | 0.00x | 0.15x | - |
| Debt / EBITDA | 0.01x | 0.16x | 0.93x |
| Net Debt / EBITDA | -0.28x | -0.79x | -1.27x |
| Interest Coverage | - | - | - |
| Total Equity | 1.65M | 577.23K | -116.7K |
| Equity Growth % | 186.21% | 594.62% | - |
| Book Value per Share | - | 0.05 | -0.01 |
| Total Shareholders' Equity | 1.65M | 577.23K | -116.7K |
| Common Stock | 10.08K | 10.07K | 10K |
| Retained Earnings | 1.1M | 301.95K | -117.61K |
| Treasury Stock | 0 | 0 | 0 |
| Accumulated OCI | 11.41K | 711 | 909 |
| Minority Interest | 0 | 0 | 0 |
Liquidity and revenue lumpiness
As reported in recent financial filings, ZGM's 135.19% year-over-year revenue growth highlights a high-velocity expansion phase that appears to be straining the company's nascent balance sheet, as the current asset base remains small relative to the scale of its newly captured industrial consultation contracts.
The company's trajectory suggests a rapid scaling phase that may be outstripping its internal capital accumulation. Investors should monitor whether this growth is sustainable without a corresponding increase in permanent capital or if the current trajectory risks a liquidity crunch.
Based on the company's reported figures, ZGM maintains a cash and equivalents position of $327,111, which represents only 16% of TTM revenue, indicating a potentially thin liquidity buffer that may struggle to support the working capital demands of its high-growth project-based business model.
The limited cash position relative to revenue suggests that the company may be highly sensitive to payment delays from clients. This lack of a substantial liquidity cushion warrants further investigation into the company's accounts receivable turnover and the timing of cash inflows from its consultation mandates.
According to financial statements, ZGM operates with a 0.00% debt-to-equity ratio, which suggests a conservative initial capital structure that avoids interest burdens but may also indicate limited access to traditional credit markets for a newly incorporated entity seeking to fund further expansion.
While the absence of debt is a positive indicator of financial discipline, it may also imply that the company is reliant on equity-based funding or internal cash flow to fuel its growth. This structure could necessitate future dilutive equity raises if the company requires significant capital for infrastructure or expansion.
As indicated by the company's recent disclosures, the reliance on project-based revenue recognition may create a significant distortion between reported accounting profits and actual cash availability, a risk that is amplified by the company's short operating history and limited cash reserves of $327,111.
The potential mismatch between recognized revenue and cash collection suggests that the company's reported net margin of 39.37% may not fully reflect its underlying cash generation capabilities. Investors should be cautious of the inherent volatility in these figures, as they may be heavily influenced by the timing of milestone-based payments.
Quick answers to the most common questions about buying ZGM stock.
As of 2024, Zenta Group Company Limited Ordinary Shares (ZGM) had total assets of $3.7M including $2.0M in current assets.
Zenta Group Company Limited Ordinary Shares (ZGM) carries total debt of $0.0M, offset by $0.3M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Zenta Group Company Limited Ordinary Shares (ZGM) has total shareholders' equity (book value) of $1.7M. Book value represents the net worth of the company belonging to common stock holders.
Zenta Group Company Limited Ordinary Shares (ZGM) reported a current ratio of 0.99x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.