TBH Global Co Ltd

### Capital Structure and Liquidity TBH Global's capital structure is characterized by a debt-to-equity ratio of 0.39, indicating a relatively conservative leverage position. However, the company's liquidity is rated as medium, with a current ratio of 2.01. Despite this, the firm has only KRW 260 in cash and equivalents, which is significantly lower than its long-term debt of KRW 24,011,857,690, resulting in a negative net cash position.

### Profitability and Returns The company is currently unprofitable, with a net loss of KRW 1,425,651,140 and an operating loss of KRW 606,298,060. Its return on equity (ROE) is -2.32%, and return on assets (ROA) is -1.32%, both well below the industry median for Apparel & Accessories. The gross profit margin is 57.76%, which is in line with the industry median, but the operating margin is -1.49%, significantly below the sector average.

### Segments and Geographic Exposure TBH Global's revenue is concentrated in a single disclosed segment, with no further breakdown provided in the available data. The company's geographic exposure is not explicitly detailed, but as a South Korean firm, it is likely to be heavily exposed to the domestic market and regional supply chains.

### Growth Trajectory The company's revenue for the latest period was KRW 40,693,048,950, which is in line with the industry median. However, the operating cash flow is negative at KRW -3,163,243,860, and the free cash flow is also negative at KRW -312,089,640. Analysts reported a last actual revenue of KRW 210,779,000,000, suggesting a significant decline in performance.

### Risk Factors and Dilution The company faces medium liquidity risk due to its negative net cash position. The risk of dilution is rated as low, with no significant dilution events reported in the latest filings. The valuation adjustments applied in the custom valuations do not indicate any material dilution risk.

### Recent Events Recent financial filings show a continued decline in profitability, with a net loss and operating loss reported in the latest period. No recent earnings call transcripts or major corporate events are disclosed in the available data.

Free cash flow surged 479.9% year-over-year to 5.2 billion KRW, demonstrating significant improvement in cash generation capabilities.

Cash conversion ratio of 2.22 places the company in the top quartile of the Apparel & Accessories cohort.

Net income increased 222.1% year-over-year, turning a previous loss into a profit of 884.5 million KRW.

Long-term debt decreased to 23.0 billion KRW in 2020, reflecting a continued trend of deleveraging over the past four years.

Debt-to-equity ratio of 0.39 is below the cohort median of 0.27, indicating a relatively conservative leverage position.

Operating margin of -1.49% and net margin of -3.5% both rank in the bottom quartile of the Apparel & Accessories cohort.

Return on equity of -2.32% significantly underperforms the cohort median of 3.56%, indicating poor capital efficiency.

The company faces high credit risk according to internal risk flags, suggesting potential difficulties in meeting financial obligations.

Revenue declined with a negative 0.8% CAGR over the last four years, showing a lack of top-line growth momentum.

Revenue KRW 40.45B, −0,6% YoY; Operating income −359,2% YoY.

• ▍Revenue KRW 40.45B, −0,6% YoY
• ▍Operating income −359,2% YoY
• ▍Net income −94,1% YoY
• ▍Free cash flow −330,8% YoY
• ▍Net margin -6.8%

Revenue KRW 56.12B; Operating income KRW 3.44B.

• ▍Revenue KRW 56.12B
• ▍Operating income KRW 3.44B
• ▍Net margin 2.5%

Revenue KRW 40.69B; Operating income -KRW 606.3M.

• ▍Revenue KRW 40.69B
• ▍Operating income -KRW 606.3M
• ▍Net margin -3.5%

Revenue KRW 182.42B, +2,2% YoY; Operating income −11,4% YoY.

• ▍Revenue KRW 182.42B, +2,2% YoY
• ▍Operating income −11,4% YoY
• ▍Net income +222,1% YoY
• ▍Free cash flow +479,9% YoY
• ▍Net margin 0.5%

Revenue KRW 178.46B, −9,5% YoY; Operating income −58,1% YoY.

• ▍Revenue KRW 178.46B, −9,5% YoY
• ▍Operating income −58,1% YoY
• ▍Net income −110,8% YoY
• ▍Free cash flow −88,1% YoY
• ▍Net margin -0.4%

Revenue KRW 197.10B, −3,0% YoY; Operating income +117,1% YoY.

• ▍Revenue KRW 197.10B, −3,0% YoY
• ▍Operating income +117,1% YoY
• ▍Net income +36,7% YoY
• ▍Free cash flow −8,8% YoY
• ▍Net margin 3.4%

Revenue KRW 203.09B, +8,0% YoY; Operating income −975,4% YoY.

• ▍Revenue KRW 203.09B, +8,0% YoY
• ▍Operating income −975,4% YoY
• ▍Net income +125,1% YoY
• ▍Free cash flow +153,6% YoY
• ▍Net margin 2.4%

Revenue KRW 188.08B; Operating income KRW 4.88B.

• ▍Revenue KRW 188.08B
• ▍Operating income KRW 4.88B
• ▍Net margin -10.4%