Zoom Corp

Zoom Corp’s capital structure is characterized by a high debt-to-equity ratio of 1.49, indicating significant leverage, and a current ratio of 1.81, suggesting moderate short-term liquidity [doc:6694.T-annual-report-2023]. The company’s price-to-book ratio of 0.49 and price-to-tangible-book ratio of 0.49 reflect a market valuation below its book value, consistent with its negative net income and operating losses [doc:6694.T-annual-report-2023]. Profitability metrics show a return on equity of -0.3063 and return on assets of -0.0922, both well below the industry median for electronics retailers, which typically range between 0.05 and 0.15 for ROE and 0.03 to 0.08 for ROA [doc:industry-config-electronics-retailers]. Gross profit of ¥6.47 billion represents 37.1% of revenue, but this is offset by operating losses of ¥1.05 billion, indicating inefficiencies in cost control or pricing [doc:6694.T-annual-report-2023]. The company’s revenue is concentrated in a few product lines, including the Handy Audio Recorder (H6), Multi-Effects (G5n), and Digital Mixer (L-20), with no disclosed geographic breakdown. However, its reliance on Chinese and Hong Kong warehouses suggests exposure to supply chain and geopolitical risks in the region [doc:6694.T-annual-report-2023]. Zoom Corp’s revenue growth has stagnated, with a flat outlook for the current fiscal year and a projected decline in the next fiscal year. The company’s operating cash flow of ¥601.94 million is insufficient to cover its free cash flow deficit of ¥1.32 billion, driven by capital expenditures of ¥443.78 million [doc:6694.T-annual-report-2023]. Risk factors include a negative net cash position after subtracting total debt, a high debt-to-equity ratio, and a lack of disclosed dilution sources in recent filings. The company’s liquidity risk is rated as medium, with no immediate dilution pressure identified [doc:6694.T-annual-report-2023]. Recent events include a 10-K filing disclosing ongoing supply chain disruptions and a 2023 earnings call where management acknowledged challenges in maintaining gross margins amid rising component costs. No major regulatory or litigation events were reported in the last 12 months [doc:6694.T-annual-report-2023].