Daou Data Corp

Daou Data Corp exhibits a highly leveraged capital structure, with total liabilities of 82.03 trillion KRW against total equity of 1.61 trillion KRW, resulting in a debt-to-equity ratio of 22.5. The company holds 2.06 trillion KRW in cash and equivalents, but this is insufficient to cover its 36.23 trillion KRW in long-term debt, leading to a negative net cash position. Liquidity is constrained, as evidenced by a current ratio of 0.99, indicating that current liabilities slightly exceed current assets. The market capitalization stands at 730 billion KRW, with a price-to-book ratio of 0.45, suggesting the market values the company below its book value.

Profitability metrics show a gross profit of 2.72 trillion KRW on revenue of 18.05 trillion KRW, yielding a gross margin of approximately 15%. Operating income is 1.65 trillion KRW, but net income drops significantly to 218.8 billion KRW, indicating substantial interest or other non-operating expenses likely driven by the high debt load. The return on equity is 13.59%, which is positive but must be viewed in the context of the high leverage, while the return on assets is a mere 0.26%, reflecting the large asset base relative to net income. The price-to-earnings ratio is 3.34, implying a low valuation multiple relative to earnings.