Investment Thesis
Maison Luxe exhibits severe financial distress with negative profitability, collapsing liquidity, and unsustainable leverage. The company is unprofitable on an operating basis, burning cash from operations, and faces imminent solvency concerns with a debt-to-equity ratio of 33.5x and current ratio of 0.08x.
Strengths
- Positive gross profit of $219.3K indicates some pricing power or cost structure above variable expenses
- Operating income of $26.8K suggests minimal operational efficiency despite negative net results
- Cash position of $34.6K provides limited runway for near-term operations
Risks
- Critically negative net margin of -4.2% indicates the company loses money on every dollar of revenue
- Current ratio of 0.08x represents acute liquidity crisis with liabilities of $2.6M against assets of $2.7M
- Debt-to-equity ratio of 33.5x with $1.2M long-term debt against only $35.8K stockholders equity indicates extreme financial leverage and bankruptcy risk
- Negative operating cash flow of -$36.1K shows the business cannot sustain operations from cash generation
- Interest coverage of 0.3x reveals inability to service debt obligations from operating income
- Data freshness from 2011-09-30 raises concerns about whether company is still viable or operating
- Negative ROE of -221.5% and ROA of -3.0% demonstrate severe shareholder value destruction
Key Metrics to Watch
- Operating cash flow trend and path to positive cash generation
- Debt reduction and capital restructuring activities
- Revenue stability and gross margin sustainability given challenging profitability
- Current ratio improvement and liquidity management
Financial Metrics
Revenue
1.9M
Net Income
-79.2K
EPS (Diluted)
$0.00
Free Cash Flow
-36.1K
Total Assets
2.7M
Cash
34.6K
Profitability Ratios
Gross Margin
11.7%
Operating Margin
1.4%
Net Margin
-4.2%
ROE
-221.5%
ROA
-3.0%
FCF Margin
-1.9%
Balance Sheet & Liquidity
Current Ratio
0.08x
Quick Ratio
0.08x
Debt/Equity
33.50x
Debt/Assets
98.7%
Interest Coverage
0.25x
Long-term Debt
1.2M
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: 2026-04-01T13:20:10.822846 |
Data as of: 2011-09-30 |
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