Investment Thesis
Quarta-Rad exhibits critical financial distress with operating losses of -119% despite strong 129.4% revenue growth, indicating severe structural profitability issues. The company faces an imminent liquidity crisis with a current ratio of 0.25x and only 72.9K in cash against 287.9K in liabilities, with a 9.9K annual cash generation rate providing less than one year of runway.
Strengths
- Strong revenue growth of 129.4% YoY demonstrates market demand
- Gross margin of 41.5% indicates viable underlying product/service economics
- Positive operating cash flow of 9.9K despite massive net losses shows some cash generation ability
- Minimal debt burden with 0.00x debt-to-equity ratio reduces leverage risk
Risks
- Operating losses of -291.4K vastly exceed gross profit of 101.6K, indicating uncontrollable operating expenses
- Net margin of -104.9% means losing over $1 for every $1 of revenue generated; unsustainable burn rate
- Critical liquidity crisis: current ratio of 0.25x indicates inability to meet short-term obligations
- Deteriorating earnings with net income declining 18.5% YoY despite revenue growth
- Extremely small absolute scale (245K revenue, 413.5K assets) limits financial flexibility and operational viability
- Cash position of 72.9K insufficient to cover liabilities of 287.9K or sustain operations beyond 12 months at current burn rate
Key Metrics to Watch
- Cash runway and monthly burn rate relative to cash balance
- Operating expense trends and ability to achieve operating profitability
- Current ratio and working capital position for imminent solvency risk
- Revenue growth sustainability versus operating expense control
- Debt covenant compliance and refinancing ability
Financial Metrics
Revenue
245.0K
Net Income
-256.9K
EPS (Diluted)
$-0.02
Free Cash Flow
9.9K
Total Assets
413.5K
Cash
72.9K
Profitability Ratios
Gross Margin
41.5%
Operating Margin
-119.0%
Net Margin
-104.9%
ROE
-207.2%
ROA
-62.1%
FCF Margin
4.0%
Balance Sheet & Liquidity
Current Ratio
0.25x
Quick Ratio
0.25x
Debt/Equity
0.00x
Debt/Assets
69.6%
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: 2026-04-14T22:51:21.073288 |
Data as of: 2025-12-31 |
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