Hiraki Co Ltd

Hiraki Co Ltd's capital structure is characterized by a debt-to-equity ratio of 1.04, indicating a moderate reliance on debt financing [doc:HA-latest]. The company holds 6.48 billion JPY in cash and equivalents, but this is offset by 6.75 billion JPY in long-term debt, resulting in a net cash position of -269 million JPY [doc:HA-latest]. The liquidity risk is moderate, with a current ratio of 2.99, suggesting the company can cover its short-term liabilities with its current assets [doc:HA-latest]. Profitability metrics show a challenging performance, with a return on equity of -11.91% and a return on assets of -5.15% [doc:HA-latest]. These figures are below the typical thresholds for healthy returns in the retail sector, indicating operational inefficiencies or declining margins. The company reported a net loss of 771.9 million JPY and an operating loss of 611.2 million JPY, reflecting a significant deterioration in its financial performance [doc:HA-latest]. The company's revenue is distributed across three segments: Mail Order, Discount Stores, and Wholesale. While the exact revenue contribution of each segment is not disclosed, the company's operations are primarily concentrated in Japan, with no significant international exposure mentioned in the available data [doc:HA-latest]. This geographic concentration may expose the company to local economic fluctuations and regulatory changes. Looking ahead, the company's growth trajectory appears uncertain. The outlook for the current fiscal year does not provide specific revenue growth projections, but the recent operating and net losses suggest a challenging environment. The company's capital expenditure of -128.1 million JPY indicates a reduction in investment, which may signal a strategic shift or financial constraints [doc:HA-latest]. Risk factors include liquidity concerns due to the negative net cash position and the potential for operational losses to persist. The dilution risk is currently low, with no significant changes in shares outstanding between basic and diluted shares [doc:HA-latest]. However, the company's financial performance and capital structure adjustments could influence future dilution potential. Recent events, such as the latest financial results and analyst estimates, highlight the company's ongoing challenges. The last actual EPS was -141.72 JPY, and the last actual revenue was 12.96 billion JPY, both reflecting a difficult operating environment [doc:, doc:].