Tear Corp

Tear Corp maintains a debt-to-equity ratio of 1.43, indicating a moderate reliance on debt financing, while its current ratio of 0.99 suggests limited short-term liquidity cushion. The company holds 4.54 billion JPY in cash and equivalents, but this is offset by 12.32 billion JPY in long-term debt, resulting in a net cash position of -7.78 billion JPY. Profitability metrics show a return on equity (ROE) of 10.37% and a return on assets (ROA) of 3.2%, both below the industry median for Personal Services firms, which typically report ROE of 12.5% and ROA of 4.1%. Operating income of 1.46 billion JPY and net income of 892 million JPY reflect a 6.8% operating margin and 4.1% net margin, which are in line with the sector’s average profitability. The company’s revenue is concentrated in disclosed segments, with no material geographic diversification reported. Tear Corp’s revenue of 21.56 billion JPY is derived from a single business line, as no segmental breakdown is provided in the latest financials. Looking ahead, Tear Corp’s revenue is expected to remain stable, with no significant growth or contraction projected in the current or next fiscal year. The company’s capital expenditure of -1.37 billion JPY indicates a net cash inflow from investing activities, suggesting a conservative approach to asset investment. Risk factors include a medium liquidity risk due to the current ratio of 0.99 and a net cash position of -7.78 billion JPY. The company has a low dilution risk, with no near-term pressure from share issuance or convertible debt. Recent filings and transcripts show no material changes in Tear Corp’s business strategy or financial outlook. The company’s latest actual revenue of 21.56 billion JPY and EPS of 39.59 JPY align with analyst estimates, indicating stable performance.