Aqaseem Factory for Chemicals and Plastics Co SJSC

Aqaseem Factory for Chemicals and Plastics Co SJSC has a debt-to-equity ratio of 1.63, indicating a moderate reliance on debt financing, and a current ratio of 2.3, suggesting reasonable short-term liquidity [doc:HA-latest]. However, the company's negative net cash position after subtracting total debt raises concerns about its ability to meet long-term obligations without additional financing [doc:HA-latest]. The company reported a net loss of SAR 2.2 million, with a return on equity of -4.42% and a return on assets of -1.36%, both significantly below the industry median for profitability and returns [doc:HA-latest]. These figures indicate that the company is not generating sufficient returns to cover its cost of capital or to justify its asset base. Aqaseem Factory for Chemicals and Plastics Co SJSC operates in a single business segment, with all revenue derived from its domestic operations in Saudi Arabia. This lack of diversification exposes the company to regional economic and political risks, as well as potential supply chain disruptions [doc:HA-latest]. The company's revenue for the latest period was SAR 135.8 million, but there is no indication of growth in the near term. The negative operating cash flow of SAR 16.6 million and the free cash flow of SAR 0.9 million suggest that the company is not generating enough cash to sustain operations or fund expansion without external financing [doc:HA-latest]. The risk assessment indicates a medium liquidity risk and a low dilution risk. The company's negative net cash position is a key flag, suggesting that it may need to raise additional capital or restructure its debt in the near future [doc:HA-latest]. The low dilution risk is attributed to the absence of significant dilution sources in the latest filings [doc:HA-latest]. There are no recent events or filings that indicate significant changes in the company's operations or financial position. The company's financial performance and risk profile remain largely unchanged from the previous reporting period [doc:HA-latest].