Is Sourcenext (TSE:4344) Using Too Much Debt?
Sourcenext Corporation (TSE:4344) has a debt of JP¥5.53b, reduced from JP¥6.86b, with JP¥6.23b in cash, resulting in net cash of JP¥703.0m. Despite liabilities exceeding cash and receivables by JP¥604.0m, its market cap of JP¥23.5b suggests manageable debt. However, Sourcenext reported an EBIT loss and burned through JP¥2.0b in cash last year, raising concerns about its financial health. Investors should be cautious due to two identified warning signs and the absence of free cash flow.
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