Investment Thesis
Birkie Win Corp exhibits severe financial distress with negative stockholders' equity of -2.2K, indicating liabilities exceed assets. The company is unprofitable with -165.2% net margin, negative operating cash flow of -1.4K, and minimal cash reserves of only 722 dollars, creating existential solvency risk.
Strengths
- Revenue growth of 20% YoY shows demand exists for services
- Gross profit of 20K exceeds revenue of 10K suggesting potential pricing power or accounting adjustments
- Net income loss improved 28.2% YoY indicating cost structure optimization attempts
Risks
- Negative stockholders' equity (-2.2K) indicates technical insolvency and liabilities exceed total assets
- Current ratio of 0.88x and quick ratio of 0.88x show inability to cover short-term obligations
- Critically low cash position of 722 dollars with negative operating cash flow (-1.4K) and negative free cash flow (-2.8K) creates immediate liquidity crisis
- Operating losses of -16.5K on revenue of only 10K demonstrate unsustainable unit economics
- No insider buying activity in last 90 days suggests management lacks confidence in turnaround
Key Metrics to Watch
- Stockholders equity trajectory toward positive territory
- Operating cash flow return to positive
- Cash reserve depletion rate and runway to insolvency
- Revenue growth sustainability and path to operating profitability
Financial Metrics
Revenue
10.0K
Net Income
-16.5K
EPS (Diluted)
$0.00
Free Cash Flow
-2.8K
Total Assets
16.0K
Cash
722.0
Profitability Ratios
Gross Margin
200.0%
Operating Margin
-165.2%
Net Margin
-165.2%
ROE
N/A
ROA
-103.0%
FCF Margin
-27.5%
Balance Sheet & Liquidity
Current Ratio
0.88x
Quick Ratio
0.88x
Debt/Equity
N/A
Debt/Assets
113.4%
Interest Coverage
N/A
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-21T13:16:09.943378 |
Data as of: 2026-01-31 |
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