Leatt Corp

Leatt Corp maintains a strong liquidity position, with $12.99 million in cash and equivalents and a current ratio of 4.87, indicating a robust ability to cover short-term liabilities [doc:HA-latest]. The company’s debt-to-equity ratio is 0.02, reflecting a conservative capital structure with minimal long-term debt exposure [doc:HA-latest]. Free cash flow of $3.51 million supports operational flexibility and potential reinvestment [doc:HA-latest]. Profitability metrics show a return on equity (ROE) of 7.73% and a return on assets (ROA) of 6.27%, both below the median for the Recreational Products industry, which typically sees ROE and ROA in the 10-15% range [doc:industry_config]. Gross profit of $27.22 million represents 44% of revenue, consistent with industry norms, but operating income of $4.01 million and net income of $3.26 million suggest margin compression relative to peers [doc:HA-latest]. The company’s revenue is concentrated in a single product line—personal protective equipment—sold through 61 global distributors. No geographic revenue breakdown is disclosed, but manufacturing is outsourced to China, Thailand, and Bangladesh, exposing the company to supply chain and currency risks [doc:HA-latest]. No material revenue diversification is evident in the financial snapshot. Outlook data is not provided, but historical revenue of $61.91 million suggests a stable base. The company’s growth trajectory is likely tied to the cyclical demand for recreational motor sports equipment, which is sensitive to macroeconomic conditions and discretionary spending [doc:industry_config]. No recent revenue acceleration or deceleration is evident in the data. Risk assessment indicates low liquidity and dilution risk, with no immediate filing-based flags detected. The company has no near-term dilution pressure, and its low debt load reduces credit risk. However, reliance on a single product category and outsourced manufacturing introduces operational and market concentration risks [doc:HA-latest]. No recent filings or transcripts are provided in the input data, so no specific events can be cited. The company’s business model and financials appear stable, but its exposure to discretionary consumer spending and global supply chains warrant ongoing monitoring [doc:HA-latest].