DAVIDsTEA Inc

DAVIDsTEA Inc operates with a debt-to-equity ratio of 0.74 and a current ratio of 1.66, indicating moderate leverage and acceptable short-term liquidity. The company reported negative operating income of CAD -2.94 million and net income of CAD -3.21 million, reflecting a challenging operating environment. Free cash flow is negative at CAD -1.42 million, driven by capital expenditures of CAD -1.57 million, suggesting ongoing investment in operations. Profitability metrics show a return on equity of -17.45% and a return on assets of -6.75%, both significantly below the industry median for Food Retail & Distribution, which typically sees positive returns in the mid-single digits. Gross profit of CAD 29.54 million represents 47.8% of revenue, but this is insufficient to offset operating costs, leading to a net loss. The company's revenue is split between the Canada and U.S. segments, with the Canada segment likely representing the majority of sales given the 20 Company-owned stores in Canada and extensive wholesale distribution in the region. The U.S. segment, while smaller, includes over 900 grocery store customers, indicating a growing but still limited geographic footprint. Revenue for the latest period was CAD 61.80 million, with no specific growth rate provided. However, the company's operating cash flow of CAD 8.85 million suggests some resilience in cash generation despite the net loss. The outlook for the current and next fiscal years is not explicitly provided, but the negative net income and free cash flow indicate a need for operational improvements or cost reductions. The risk assessment highlights medium liquidity risk and low dilution risk, with a key flag indicating that net cash is negative after subtracting total debt. The company's capital structure includes CAD 13.67 million in long-term debt and CAD 29.17 million in total liabilities, with equity of CAD 18.40 million. No recent events or filings are provided in the input data to suggest material changes in the company's risk profile.