Investment Thesis
Hartford Creative Group exhibits severe financial distress with collapsing revenue (-94.8% YoY to -5.0K), negative operating cash flow of -174.0K, and a liquidity crisis signaled by a current ratio of 0.99x. The contradictory financial statements (negative revenue producing positive profits) suggest operational dysfunction or accounting anomalies, while the thin 357.8K equity base relative to 3.2M liabilities indicates limited financial resilience.
Strengths
- Zero debt (0.00x debt-to-equity ratio) eliminates leverage risk
- Positive interest coverage ratio of 13.1x (though meaningful given negative operations)
- Non-zero stockholders equity of 357.8K provides minimal cushion
Risks
- Revenue collapse of 94.8% YoY with negative -5.0K indicates non-functional business model
- Negative operating cash flow of -174.0K while reporting positive net income signals cash burn and quality-of-earnings concerns
- Current ratio of 0.99x (below 1.0) and quick ratio of 0.89x indicate imminent liquidity crisis
- Liabilities (3.2M) dwarf equity (357.8K), leaving minimal margin for error
- Zero insider Form 4 activity in 90 days suggests lack of management confidence
Key Metrics to Watch
- Operating cash flow trajectory - critical to determine if cash burn continues
- Current ratio movement - must recover above 1.0x to avoid default risk
- Revenue stabilization - validate if negative revenue figures indicate operational restart or continued decline
Financial Metrics
Revenue
-5.0K
Net Income
57.6K
EPS (Diluted)
$0.00
Free Cash Flow
-174.3K
Total Assets
3.6M
Cash
149.6K
Profitability Ratios
Gross Margin
-2,452.9%
Operating Margin
-2,687.0%
Net Margin
-1,143.9%
ROE
16.1%
ROA
1.6%
FCF Margin
3,459.9%
Balance Sheet & Liquidity
Current Ratio
0.99x
Quick Ratio
0.89x
Debt/Equity
0.00x
Debt/Assets
90.0%
Interest Coverage
13.10x
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: 2026-04-11T03:15:19.637765 |
Data as of: 2026-01-31 |
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