Hwaseung R&A Co Ltd

Capital Structure and Liquidity Hwaseung R&A Co Ltd has a debt-to-equity ratio of 0.89, indicating a moderate reliance on debt financing [doc:HA-latest]. The company's liquidity position is assessed as medium, with a current ratio of 0.84, suggesting that its current liabilities exceed its current assets [doc:HA-latest]. Free cash flow for the latest period was KRW 15,759,512,220, which is lower than the operating cash flow of KRW 49,860,221,240, indicating capital expenditures have consumed a portion of operating cash [doc:HA-latest]. ### Profitability and Returns The company's return on equity (ROE) is 10.93%, which is relatively strong, but its return on assets (ROA) is 3.8%, suggesting that asset utilization is not as efficient as equity generation [doc:HA-latest]. Gross profit of KRW 133,550,944,400 and operating income of KRW 27,022,444,920 indicate a healthy margin structure, though the ROA suggests there is room for improvement in asset efficiency [doc:HA-latest]. ### Segments and Geographic Exposure Hwaseung R&A Co Ltd operates in a single business segment focused on automotive rubber parts. The company's geographic exposure is concentrated in South Korea, with no disclosed international operations. Revenue concentration in a single country and product line increases exposure to regional economic and regulatory risks [doc:HA-latest]. ### Growth Trajectory The company's revenue for the latest period was KRW 714,559,988,810. While historical revenue growth is not provided, the company's capital expenditures of KRW -18,690,404,570 suggest a focus on maintaining or expanding production capacity [doc:HA-latest]. The outlook for the current and next fiscal years is not explicitly provided, but the company's liquidity position and capital spending suggest a cautious growth strategy. ### Risk Factors The company faces a medium liquidity risk, as its current ratio is below 1, and net cash is negative after subtracting total debt. Dilution risk is assessed as low, with no significant dilution potential in the near term. The company's reliance on a single geographic market and product line increases its vulnerability to regional economic downturns and regulatory changes [doc:HA-latest]. ### Recent Events No recent filings or transcripts are provided in the input data to assess recent events or strategic developments. The company's financials suggest a stable but cautious operational approach, with no significant changes in capital structure or profitability in the latest period [doc:HA-latest].