Arabica Star Co SJSC

Arabica Star Co SJSC has a liquidity risk profile marked by a current ratio of 0.33, indicating that current liabilities significantly exceed current assets [doc:HA-latest]. The company's cash and equivalents of SAR 954,780 are insufficient to cover its total liabilities of SAR 34,333,930, and its free cash flow is negative at SAR -4,058,690. The debt-to-equity ratio of 0.58 suggests moderate leverage, but the negative net cash position after subtracting total debt raises concerns about short-term solvency [doc:HA-latest]. Profitability metrics are weak, with a return on equity of -8.64% and a return on assets of -4.42%, both significantly below the industry median for Restaurants & Bars. The company reported a net loss of SAR 3,110,560 and an operating loss of SAR 898,800, indicating operational inefficiencies and cost overruns [doc:HA-latest]. The company operates through approximately 7 branches, with no disclosed segment or geographic revenue breakdown. Given the limited scale and the absence of international operations, revenue concentration is likely high within Saudi Arabia, exposing the company to local economic and regulatory risks [doc:HA-latest]. Growth prospects are constrained by the current financial performance. The company's revenue of SAR 50,052,140 is offset by a net loss, and there is no indication of revenue acceleration in the outlook. The capital expenditure of SAR -12,794,310 suggests ongoing investment in infrastructure, but the negative free cash flow indicates that these investments are not yet generating returns [doc:HA-latest]. The risk assessment highlights liquidity as a medium concern, with a negative net cash position and a weak current ratio. The dilution risk is low, and no recent equity issuance or dilutive events are reported. However, the company's operating cash flow of SAR 13,099,220 provides some buffer against short-term obligations [doc:HA-latest]. Recent filings and transcripts are not available in the provided data, so no specific events can be cited. The company's financial health is closely tied to its ability to improve operational efficiency and reduce losses, which will be critical for sustaining operations and future growth [doc:HA-latest].