Suntech Co Ltd

Suntech Co Ltd has a liquidity risk profile of medium severity, with a current ratio of 0.69 and negative free cash flow of -1,790,037,830 KRW, indicating short-term obligations may exceed current assets. The company’s debt-to-equity ratio of 3.01 suggests a high reliance on debt financing, with long-term debt of 9,883,824,430 KRW compared to total equity of 3,286,482,260 KRW. The negative operating cash flow of -321,548,450 KRW further highlights the company’s cash flow challenges. Profitability metrics are weak, with a return on equity of -53.47% and a return on assets of -7.66%, both significantly below the industry median for Heavy Electrical Equipment. Gross profit of 2,266,492,880 KRW is underperforming relative to revenue of 21,533,148,190 KRW, indicating margin compression or cost overruns. The company reported a net loss of 1,757,381,650 KRW and an operating loss of 1,894,112,360 KRW, signaling operational inefficiencies. The company’s revenue is derived from domestic and overseas markets, though the input data does not specify the geographic breakdown or segment performance. The lack of segment-level data limits the ability to assess geographic concentration risk or identify high-growth areas. Growth prospects are constrained, with no forward-looking revenue guidance provided in the input data. The company’s capital expenditure of -88,712,850 KRW suggests minimal investment in expansion or modernization. The absence of positive revenue growth or margin improvement in the latest financials raises concerns about the company’s ability to scale operations or improve profitability. The risk assessment highlights liquidity and dilution risks. The company’s net cash position is negative after subtracting total debt, and while dilution risk is currently low, the high debt-to-equity ratio could lead to future equity issuance if debt covenants are breached. No recent events or filings are provided in the input data to suggest immediate changes in risk exposure. No recent events, such as earnings calls, regulatory filings, or press releases, are included in the input data to provide insight into management’s strategy or external developments affecting the company.