Shinwon Corp

Shinwon Corp maintains a capital structure characterized by significant leverage, with long-term debt of 289.1 billion KRW against total equity of 229.7 billion KRW, resulting in a debt-to-equity ratio of 1.26. The company holds 24.9 billion KRW in cash and equivalents, which is insufficient to cover its total liabilities of 412.9 billion KRW, leading to a negative net cash position. Liquidity is assessed as medium, supported by a current ratio of 1.24, indicating adequate short-term asset coverage for current liabilities. The market capitalization stands at 96.3 billion KRW, trading at a price-to-book ratio of 0.42, suggesting the market values the company below its book value.

Profitability metrics indicate severe operational challenges, with the company reporting a net loss of 2.6 billion KRW on revenues of 1.09 trillion KRW. The return on equity is negligible at 0.0061, and return on assets is 0.0022, reflecting an inability to generate meaningful returns on its capital base. Operating income is positive at 16.9 billion KRW, but this is eroded by non-operating items or interest expenses to result in a net loss. The gross profit of 249.3 billion KRW suggests a gross margin of approximately 22.8%, but operating leverage is weak given the low operating income relative to revenue.

Segment and geographic revenue breakdowns are not provided in the available data, preventing an analysis of revenue concentration or specific business unit performance. The company's activity is broadly classified under Textiles, Apparel & Luxury Goods, but specific product lines or customer bases are not disclosed in the input data.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current financial snapshot shows a negative operating cash flow of -13.4 billion KRW and negative free cash flow of -11.9 billion KRW, driven by capital expenditures of -21.0 billion KRW. This cash burn indicates that the company is investing heavily in assets while failing to generate sufficient cash from operations to fund these investments or cover its net loss.

Risk assessment highlights medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, emphasizing the company's reliance on external financing or asset liquidation to meet obligations. The low dilution risk suggests that the share count of 89.8 million shares is stable, with no immediate signs of aggressive equity issuance.

Recent observations include an analyst estimate of last actual EPS at 19.00 KRW, which contrasts with the reported net loss, potentially indicating a difference in reporting periods or adjustments. No specific filing, news, or transcript observations are provided to detail recent corporate events or management signals.

Operating income reached 16.9 billion KRW in the latest period, maintaining positive operational profitability.

Free cash flow improved significantly to -11.9 billion KRW, showing a reduction in cash burn compared to prior years.

Gross profit increased to 249.3 billion KRW, indicating strong underlying margin generation before operating expenses.

Dilution risk is assessed as low, suggesting limited immediate threat to existing shareholder equity value.

Net income swung to a loss of 2.6 billion KRW, marking a severe deterioration from previous profitability.

Credit risk is flagged as high, indicating significant potential for financial distress or default issues.

Debt-to-equity ratio stands at 1.26, significantly higher than the 0.39 cohort median, signaling high leverage.