Kyowa Leather Cloth Co Ltd

Kyowa Leather Cloth maintains a strong liquidity position with JPY 8.25 billion in cash and equivalents, representing 13.9% of total assets, and a current ratio of 1.74, indicating sufficient short-term liquidity to cover obligations. The company's liquidity_fpt score is high, supported by low debt levels and a debt-to-equity ratio of 0.01, which is well below the industry median for Textiles & Leather Goods. Profitability metrics show a return on equity (ROE) of 3.04% and a return on assets (ROA) of 1.85%, both below the industry median for ROE and ROA in the Textiles & Leather Goods sector. The company's gross margin is 17.85% (JPY 10.07 billion gross profit on JPY 56.4 billion revenue), but operating margin is only 3.67% (JPY 2.07 billion operating income), indicating pressure from operating expenses. The company's revenue is concentrated in Japan, with no disclosed international segments, and its business is diversified between synthetic leather manufacturing and worker dispatching. The synthetic leather segment is the primary revenue driver, with no material segment-specific disclosures on growth or margin performance. Outlook for the current fiscal year shows stable revenue with no significant growth expected, as the company's revenue history has shown low volatility. The next fiscal year is projected to maintain this trend, with no material changes in revenue or operating income expected. Free cash flow is negative at JPY -982 million, driven by capital expenditures of JPY -3.92 billion, which is a concern for long-term reinvestment capacity. Risk assessment indicates low liquidity and dilution risk, with no immediate filing-based flags detected. The company has not issued new shares in the past year, and dilution potential remains low. However, the negative free cash flow and high capital expenditures may pressure liquidity in the medium term. No recent filings or transcripts show material events affecting the company's operations or strategy.