Llorente & Cuenca SA

Llorente & Cuenca SA maintains a debt-to-equity ratio of 1.83, indicating a leveraged capital structure with total liabilities of €114.8 million against equity of €27.2 million [doc:HA-latest]. The company's liquidity position is characterized by a current ratio of 1.15, suggesting limited short-term liquidity cushion. Free cash flow of €5.8 million in the latest period contrasts with negative net cash position after subtracting total debt [doc:HA-latest]. Profitability metrics show a return on equity of 32.9% and return on assets of 6.3%, outperforming typical advertising and marketing industry benchmarks. Operating income of €8.1 million represents 6.9% of revenue, with net income of €8.95 million translating to a 7.6% net margin [doc:HA-latest]. These returns suggest strong operational efficiency relative to industry norms. The company's geographic exposure is concentrated across 14 countries with 16 offices, including major markets in Latin America, Spain, and the United States. Revenue concentration data is not explicitly provided, but the global office footprint suggests diversified geographic risk [doc:HA-latest]. No specific segment revenue breakdown is available in the provided data. Recent financial performance shows a 12.3% revenue decline from analyst estimates (€117.7 million actual vs. €139.0 million estimated). EBIT performance also lagged estimates (€8.1 million actual vs. €10.4 million estimated). The company's capital expenditure of -€4.6 million indicates asset disposals or non-capitalized expenses in the period [doc:HA-latest]. Risk assessment highlights medium liquidity risk due to the current ratio of 1.15 and negative net cash position. Dilution risk is assessed as low, with no difference between basic and diluted shares outstanding. The company's ESG controversies score of 100.0 indicates no material controversies, while governance and social pillars score 61.2 and 61.9 respectively [doc:HA-latest]. Recent filings and transcripts are not explicitly detailed in the provided data. However, the company's ESG scores and risk assessment suggest ongoing focus on governance and social performance. The negative net cash position after debt suggests potential refinancing needs or capital structure adjustments in the near term [doc:HA-latest].