Liberta Co Ltd

Liberta Co Ltd has a debt-to-equity ratio of 2.59, indicating a capital structure that is significantly leveraged, with long-term debt amounting to 4119692000 JPY and total equity of 1592866000 JPY. The company's liquidity position is characterized by a current ratio of 1.18, with cash and equivalents of 1200581000 JPY, but net cash is negative after subtracting total debt. This suggests that the company may face challenges in meeting short-term obligations without additional financing. In terms of profitability, Liberta Co Ltd has a return on equity (ROE) of 2.91% and a return on assets (ROA) of 0.59%, which are below the industry median for Personal Products companies. The company's operating income of 126082000 JPY and net income of 46331000 JPY indicate a relatively low margin, with a gross profit of 4073695000 JPY on revenue of 10031969000 JPY. These metrics suggest that the company is not generating strong returns relative to its equity and asset base. The company's revenue is derived from a diverse range of products, including beauty, toiletry, functional clothing, and import watches. However, the financial data does not provide a breakdown of revenue by segment or geography, making it difficult to assess the concentration of risk in any particular area. The company's exposure to specific markets or customer segments is not disclosed, which could be a concern for investors seeking to understand the diversification of its revenue streams. Looking at the growth trajectory, Liberta Co Ltd's revenue of 10031969000 JPY in the latest period is consistent with the analyst estimate of 10,031,970,000 JPY. However, the company's operating cash flow is negative at -303577000 JPY, and its free cash flow is only 124190000 JPY, indicating that the company is not generating sufficient cash from operations to support its capital expenditures of -108081000 JPY. This suggests that the company may need to rely on external financing to fund its operations and growth initiatives. The risk assessment for Liberta Co Ltd highlights a medium liquidity risk and a low dilution risk. The company's key financial flags include a negative net cash position after subtracting total debt, which could impact its ability to meet short-term obligations. The company's capital structure is heavily reliant on long-term debt, which could increase its financial risk if interest rates rise or if the company's credit rating is downgraded. The dilution risk is low, as the company has not issued additional shares recently, and the number of shares outstanding has remained stable. Recent events and disclosures indicate that Liberta Co Ltd has not experienced significant changes in its business operations or financial position. The company's latest annual report and investor relations materials do not mention any major strategic initiatives, product launches, or regulatory changes that could impact its future performance. The company's focus remains on its core business of selling beauty and toiletry products through various retail channels, with no indication of a shift in strategy or market expansion.