Ta Tun Electric Wire & Cable Co Ltd

Capital Structure and Liquidity Ta Tun Electric Wire & Cable Co Ltd has a debt-to-equity ratio of 1.13, indicating a moderate reliance on debt financing. The company's liquidity is assessed as medium, with a current ratio of 1.82, suggesting it can cover short-term obligations but with limited buffer. Free cash flow of 395.27 million TWD provides some flexibility, though operating cash flow is negative at -88.69 million TWD, signaling potential short-term cash flow constraints. ### Profitability and Returns The company's return on equity (ROE) of 27.77% and return on assets (ROA) of 11.47% are strong, outperforming the median for the electrical components and equipment industry. Gross profit of 1.23 billion TWD and operating income of 1.00 billion TWD reflect solid cost control and operational efficiency. However, the net income of 816.87 million TWD is lower than the operating income, indicating some non-operational expenses or tax impacts. ### Segments and Geographic Exposure Ta Tun Electric Wire & Cable Co Ltd operates primarily in the industrial goods sector, with a focus on electrical components and equipment. The company's revenue is concentrated in Taiwan, with limited geographic diversification. This concentration may expose the company to regional economic and regulatory risks. ### Growth Trajectory Analysts estimate a mean revenue of 8.23 billion TWD for the upcoming fiscal year, compared to the actual revenue of 6.61 billion TWD in the most recent period. This suggests a projected growth of approximately 24.5% in revenue. The mean EBIT estimate of 1.52 billion TWD indicates a potential increase in operating income, though the actual EBIT for the latest period is not provided. ### Risk Factors The company faces medium liquidity risk, with a negative net cash position after subtracting total debt. The dilution risk is assessed as low, with no significant dilution potential in the near term. The company's capital structure includes long-term debt of 3.32 billion TWD, which could impact financial flexibility if interest rates rise or if the company faces refinancing challenges. ### Recent Events Recent financial filings show a negative operating cash flow, which may indicate short-term liquidity pressures. The company's capital expenditure of -139.67 million TWD suggests ongoing investment in infrastructure or equipment. Analysts have provided updated estimates for EPS and revenue, reflecting expectations of improved performance in the upcoming fiscal year.