The company maintains a conservative financial profile with a debt-to-equity ratio of 0.18 and $1.1 billion in cash, providing a necessary buffer against its $5.3 billion accumulated deficit.
| Total Current Assets | 5.86B | 6.14B | 6.19B | 6.95B | 6.28B | 5.28B | 5.08B |
| Cash & Short-Term Investments | 1.75B | 1.92B | 1.97B | 1.96B | 1.95B | 538M | 2.03B |
| Cash Only | 1.1B | 1.09B | 1.42B | 1.09B | 1.95B | 538M | 1.96B |
| Short-Term Investments | 658.94M | 825.81M | 543.98M | 874.21M | 0 | 0 | 70.06M |
| Accounts Receivable | 3.09B | 3.37B | 3.35B | 3.99B | 3.38B | 3.16B | 1.95B |
| Days Sales Outstanding | 134.34 | 136.96 | 139.73 | 167.11 | 148.27 | 150.61 | 152.23 |
| Inventory | 746.1M | 670.25M | 625.39M | 668.98M | 656M | 762.94M | 448.01M |
| Days Inventory Outstanding | 34.54 | 32.57 | 31.48 | 33.59 | 34.22 | 42.1 | 40.82 |
| Other Current Assets | 266.41M | 16 | 114.83M | 327.87M | 295.24M | 819M | 648.23M |
| Total Non-Current Assets | 400.61M | 391.9M | 421.06M | 432.15M | 530.47M | 661.86M | 490.85M |
| Property, Plant & Equipment | 346.07M | 339.19M | 374.32M | 381.25M | 464.68M | 609.74M | 443.64M |
| Fixed Asset Turnover | 24.55x | 26.50x | 23.41x | 22.88x | 17.89x | 12.55x | 10.56x |
| Goodwill | 30.81M | 30.81M | 30.81M | 30.81M | 30.81M | 30.81M | 30.81M |
| Intangible Assets | 23.73M | 32.45M | 26.74M | 20.1M | 34.98M | 21.31M | 16.41M |
| Long-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 0 | -10.55M | -10.81M | 0 | 0 | 0 | 0 |
| Total Assets | 6.26B | 6.53B | 6.61B | 7.39B | 6.81B | 5.94B | 5.57B |
| Asset Turnover | 1.36x | 1.38x | 1.33x | 1.18x | 1.22x | 1.29x | 0.84x |
| Asset Growth % | -33.96% | -1.17% | -10.5% | 8.41% | 14.7% | 6.59% | - |
| Total Current Liabilities | 3.09B | 3.43B | 3.34B | 4.03B | 3.48B | 3.39B | 2.07B |
| Accounts Payable | 2.36B | 2.72B | 2.55B | 2.88B | 2.57B | 2.45B | 1.52B |
| Days Payables Outstanding | 122.21 | 132.19 | 128.17 | 144.38 | 133.85 | 134.99 | 138.8 |
| Short-Term Debt | 332.1M | 242.31M | 319.29M | 593.15M | 260.75M | 264.17M | 75.84M |
| Deferred Revenue (Current) | 113.9M | 27.17M | 27.43M | 8.15M | 31.13M | 30.11M | 0 |
| Other Current Liabilities | 1.85M | 171.43M | 20.14M | 215.88M | 253.34M | 519.15M | 191.94M |
| Current Ratio | 1.90x | 1.79x | 1.85x | 1.73x | 1.80x | 1.56x | 2.45x |
| Quick Ratio | 1.66x | 1.60x | 1.67x | 1.56x | 1.62x | 1.33x | 2.24x |
| Cash Conversion Cycle | 46.67 | 37.34 | 43.05 | 56.32 | 48.63 | 57.72 | 54.25 |
| Total Non-Current Liabilities | 178.55M | 162.83M | 173.21M | 147.48M | 7.4B | 5.32B | 244.53M |
| Long-Term Debt | 43.8M | 42.68M | 38.89M | 0 | 0 | 0 | 0 |
| Capital Lease Obligations | 425.27M | 91.95M | 109.1M | 146.97M | 214.43M | 271.95M | 240.35M |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 32.46M | 28.2M | 25.22M | 507K | 7.18B | 5.04B | 4.18M |
| Total Liabilities | 3.27B | 3.59B | 3.51B | 4.18B | 10.88B | 8.71B | 2.32B |
| Total Debt | 535.38M | 427.32M | 548.65M | 831.35M | 570.96M | 666.49M | 412.43M |
| Net Debt | -559.88M | -665.82M | -875.29M | -259.27M | -1.38B | 615.78M | -1.65B |
| Debt / Equity | 0.18x | 0.15x | 0.18x | 0.26x | - | - | 0.13x |
| Debt / EBITDA | -2.41x | - | 1.33x | - | - | - | - |
| Net Debt / EBITDA | 2.52x | - | -2.12x | - | - | - | - |
| Interest Coverage | -8.82x | -11.25x | -17.83x | -14.75x | -6.77x | -102.27x | -96.42x |
| Total Equity | 2.99B | 2.94B | 3.1B | 3.21B | -4.07B | -2.77B | 3.26B |
| Equity Growth % | 147.08% | -5.01% | -3.52% | 178.97% | -47.02% | -184.95% | - |
| Book Value per Share | 18.46 | 18.12 | 18.91 | 19.80 | -26.85 | -19.94 | 25.16 |
| Total Shareholders' Equity | 2.99B | 2.94B | 3.1B | 3.21B | -4.07B | -2.77B | 3.24B |
| Common Stock | 4K | 4K | 4K | 4K | 1K | 1K | 1K |
| Retained Earnings | -5.3B | -5.32B | -5.17B | -4.91B | -4.02B | -2.77B | -1.47B |
| Treasury Stock | -58.91M | -81.81M | -40.76M | 0 | 0 | 0 | 0 |
| Accumulated OCI | 3.48M | -30.74M | 4.76M | -19.14M | -46.63M | 4.35M | -440K |
| Minority Interest | 0 | 0 | 0 | 0 | 4.24M | 3.9M | 12.24M |
Industrial demand cyclicality
As reported in recent financial statements, ZKH's total assets have declined from $7.4 billion in 2023Q4 to $6.3 billion in 2025Q2, signaling a potential shift toward capital preservation as the company navigates a cooling industrial environment and persistent operational losses.
The reduction in the asset base appears to reflect a strategic pivot away from aggressive infrastructure expansion toward a more cautious capital allocation model. Investors should monitor whether this contraction is a deliberate effort to improve asset turnover or a symptom of reduced investment capacity in a challenging macro climate.
Based on the latest quarterly data, ZKH maintains a modest debt-to-equity ratio of 0.18 as of 2025Q2, which suggests that the company has successfully avoided over-leveraging its balance sheet despite the ongoing pressures of negative net income and high operational cash burn.
The relatively low debt load provides a necessary buffer against interest rate volatility and potential liquidity crunches. This conservative capital structure may be a strategic necessity to maintain operational independence while the company attempts to reach a sustainable scale in the fragmented MRO market.
According to the 2025Q2 balance sheet, ZKH holds $1.1 billion in cash, maintaining a current ratio of 1.90, which indicates that the company possesses sufficient short-term liquidity to fund its ongoing operations despite the absence of consistent positive free cash flow.
While the current liquidity position appears adequate, the persistent burn rate necessitates careful management of working capital to ensure the cash runway remains sufficient. The stability of this cash position is critical for maintaining the company's physical fulfillment infrastructure and supporting its digital platform development.
As indicated by the company's financial filings, retained earnings have reached a negative $5.3 billion as of 2025Q2, reflecting the long-term impact of prioritizing market share acquisition over immediate profitability in the highly competitive Chinese industrial distribution sector.
The persistent negative retained earnings highlight the significant capital intensity required to build and maintain the company's proprietary digital and physical fulfillment network. This trend warrants further investigation into whether the company can eventually achieve the economies of scale necessary to reverse this erosion of shareholder equity.
Quick answers to the most common questions about buying ZKH stock.
As of 2025, ZKH Group Limited (ZKH) had total assets of $6.53B including $6.14B in current assets.
ZKH Group Limited (ZKH) carries total debt of $427.3M, offset by $1.92B in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
ZKH Group Limited (ZKH) has total shareholders' equity (book value) of $2.94B ($18.12 book value per share). Book value represents the net worth of the company belonging to common stock holders.
ZKH Group Limited (ZKH) reported a current ratio of 1.79x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.