Recomm Co Ltd

Recomm Co Ltd maintains a debt-to-equity ratio of 0.96, indicating a relatively balanced capital structure, while its current ratio of 1.52 suggests moderate liquidity [doc:HA-latest]. The company's cash and equivalents amount to 2,680,672,000 JPY, but this is offset by long-term debt of 4,858,183,000 JPY, resulting in a net cash position that is negative after subtracting total debt [doc:HA-latest]. The return on equity of 3.89% and return on assets of 1.55% indicate that the company is generating modest returns relative to its equity and asset base [doc:HA-latest]. In terms of profitability, the company's operating income of 407,907,000 JPY and net income of 196,718,000 JPY reflect a relatively low margin, with a gross profit of 3,153,605,000 JPY on total revenue of 13,088,331,000 JPY [doc:HA-latest]. These figures suggest that the company is operating in a competitive environment where maintaining high margins is challenging. The return on equity and return on assets are below the typical thresholds for strong performance in the retail and information technology sectors [doc:HA-latest]. The company's revenue is distributed across three segments: Information Communication, Business Process Outsourcing (BPO), and Overseas Corporate. The Information Communication segment is the primary source of revenue, with the BPO and Overseas Corporate segments contributing to a lesser extent [doc:HA-latest]. The geographic exposure is primarily in Japan, with additional operations in China and Vietnam. The company's revenue concentration in Japan may expose it to regional economic fluctuations [doc:HA-latest]. The company's growth trajectory is modest, with no specific numeric deltas provided for the current or next fiscal year. However, the operating cash flow of 472,007,000 JPY and free cash flow of 155,734,000 JPY indicate that the company is generating positive cash from operations, albeit at a limited scale [doc:HA-latest]. The capital expenditure of -212,695,000 JPY suggests that the company is not significantly investing in new assets, which may limit its long-term growth potential [doc:HA-latest]. The risk assessment indicates a medium liquidity risk and a low dilution risk. The key flag of negative net cash after subtracting total debt highlights the company's leverage position and potential liquidity constraints [doc:HA-latest]. The dilution risk is low, suggesting that the company is not expected to issue additional shares in the near term, which is supported by the fact that the shares outstanding for both basic and diluted are the same [doc:HA-latest]. Recent events and filings have not been provided in the input data, so no specific recent developments can be cited. However, the company's financial performance and risk profile suggest that it is operating in a stable but low-growth environment [doc:HA-latest].