Samhwa Networks Co Ltd

Samhwa Networks has a relatively strong liquidity position, with a current ratio of 2.21, indicating that it holds twice as many current assets as current liabilities. However, the company reported negative operating cash flow of -9.33 billion KRW and negative free cash flow of -614 million KRW, suggesting that it is currently spending more cash than it is generating from operations. The company's cash and equivalents stand at 1.32 billion KRW, which is lower than its long-term debt of 2.75 billion KRW, resulting in a net cash position that is negative after subtracting total debt.

In terms of profitability, Samhwa Networks reported a return on equity (ROE) of 2.79% and a return on assets (ROA) of 2.0%, which are below the typical thresholds for strong performance in the entertainment production industry. The company's operating income of 1.51 billion KRW and net income of 1.65 billion KRW indicate a modest profit margin, but the company's gross profit of 2.36 billion KRW suggests that it is managing to maintain some level of cost control.

The company's revenue concentration is not explicitly detailed in the available data, but as a provider of entertainment production services, it is likely exposed to market fluctuations in the entertainment industry. The company's geographic exposure is not specified, but it is primarily active in the Korean market.

Samhwa Networks' growth trajectory appears to be constrained, as the company is currently experiencing negative free cash flow and negative operating cash flow. The company's capital expenditures of -2.53 billion KRW indicate that it is investing in its operations, but the negative cash flow from operations suggests that it may be relying on external financing to fund these investments.

The company's risk profile is characterized by medium liquidity risk and low dilution risk. The negative net cash position after subtracting total debt is a key flag, indicating that the company may need to raise additional capital to fund its operations. However, the low dilution risk suggests that the company is not currently under pressure to issue new shares.

There are no recent events or filings mentioned in the available data that would significantly impact the company's operations or financial position. The company's financial performance and risk profile are based on the latest available financial data.

Samhwa Networks maintains a conservative debt-to-equity ratio of 0.05, well below the cohort median of 0.1.

Free cash flow improved by 97.2% year-over-year, suggesting a stabilization in cash generation capabilities.

Cash conversion ratio of -5.64 places the company in the bottom quartile of the Entertainment Production cohort.

Revenue KRW 62.37B, −24,2% YoY; Operating income −124,0% YoY.

• ▍Revenue KRW 62.37B, −24,2% YoY
• ▍Operating income −124,0% YoY
• ▍Net income −109,0% YoY
• ▍Free cash flow −158,9% YoY
• ▍Net margin -2.0%

Revenue KRW 82.31B, +150,0% YoY; Operating income +51,4% YoY.

• ▍Revenue KRW 82.31B, +150,0% YoY
• ▍Operating income +51,4% YoY
• ▍Net income +116,1% YoY
• ▍Free cash flow +242,5% YoY
• ▍Net margin 16.8%

Revenue KRW 32.92B; Operating income KRW 6.75B.

• ▍Revenue KRW 32.92B
• ▍Operating income KRW 6.75B
• ▍Net margin 19.5%