Solekia Ltd

Solekia maintains a strong liquidity position with JPY 10.45 billion in cash and equivalents, representing 46.9% of total assets. The company's debt-to-equity ratio of 0.27 indicates a conservative capital structure, with long-term debt at JPY 2.98 billion compared to total equity of JPY 11.11 billion. A current ratio of 2.18 suggests the company can comfortably cover its short-term liabilities with its current assets. Profitability metrics show a return on equity (ROE) of 9.73% and a return on assets (ROA) of 4.85%. These figures are in line with the industry's preferred metrics of ROE and ROA, which emphasize capital efficiency and asset utilization. Solekia's operating margin of 6.16% (calculated from operating income of JPY 1.73 billion on revenue of JPY 28.03 billion) is a key indicator of its operational efficiency. The company's revenue is concentrated in its IT services and consulting business, with no disclosed geographic diversification in the latest financial report. This lack of segmental and geographic breakdown limits visibility into potential revenue concentration risks, though the absence of immediate liquidity or dilution flags suggests a stable operating environment. Looking ahead, Solekia's revenue growth trajectory is not explicitly outlined in the available data, but the company's free cash flow of JPY 1.01 billion and operating cash flow of JPY 1.48 billion indicate a capacity to fund operations and potentially invest in growth. The company's capital expenditure of JPY -83.1 million suggests a focus on cost optimization rather than significant capital investment. Risk factors for Solekia include the typical exposures of IT services firms, such as client concentration and technology obsolescence. However, the risk assessment indicates low liquidity and dilution risks, with no immediate filing-based flags detected. The company's low dilution potential and stable share count (863,932 basic and diluted shares outstanding) suggest a controlled capital structure. Recent events, including the latest actual EPS of 1,250.81 JPY and revenue of JPY 28.03 billion, align with the company's reported financial performance. These figures reflect the company's current operational results and provide a baseline for future performance comparisons.