Paru Co Ltd

Paru Co Ltd's capital structure is characterized by a debt-to-equity ratio of 0.78, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 0.88, suggesting limited short-term liquidity coverage. Cash and equivalents amount to 1,937.84 billion KRW, but this is significantly lower than the long-term debt of 22,336.90 billion KRW, resulting in a negative net cash position.

Profitability metrics show a challenging performance, with a return on equity (ROE) of -0.35% and a return on assets (ROA) of -0.16%. These figures are below the typical thresholds for industrial machinery firms, which often require ROE above 5% and ROA above 2% to be considered competitive. The company reported a net loss of 100.997 billion KRW, despite a gross profit of 3,562.49 billion KRW, indicating high operating costs and inefficiencies in converting gross profit to net income.

Geographically, Paru Co Ltd's revenue is concentrated in South Korea, with no disclosed international segments. The company's exposure to domestic economic conditions and regulatory changes in the South Korean industrial sector is a key risk factor. No material revenue diversification is evident in the financial snapshot.

The company's growth trajectory is uncertain, with no disclosed revenue growth in the most recent period. The operating cash flow is negative at -1,886.70 billion KRW, and free cash flow is also negative at -232.58 billion KRW. These figures suggest the company is not generating sufficient cash to sustain operations or fund growth initiatives without external financing.

Risk factors include a medium liquidity risk due to the current ratio below 1 and a negative net cash position. The company's dilution risk is assessed as low, with no significant dilution potential in the basic shares outstanding. However, the negative net income and operating cash flow raise concerns about the company's ability to service its long-term debt of 22,336.90 billion KRW.

Recent events include a reported net loss and negative operating cash flow, as disclosed in the latest financial statements. No material events such as mergers, acquisitions, or regulatory changes were identified in the available data. The company's earnings per share (EPS) for the last reported period was 13.00 KRW, according to analyst estimates.

The company maintains a low dilution risk profile, suggesting limited immediate threat to existing shareholder equity value.

Cash conversion metrics rank as best-in-class within the Industrial Machinery cohort, indicating superior operational efficiency relative to peers.

The company carries high credit risk, indicating potential difficulties in meeting financial obligations or securing favorable financing terms.

Net margin of -0.9% places the company in the bottom quartile of its Industrial Machinery cohort, reflecting poor profitability.

Return on equity of -0.35% ranks in the bottom quartile of the cohort, demonstrating inefficient use of shareholder capital.