Here's Why Yasunaga (TSE:7271) Has A Meaningful Debt Burden

Yasunaga Corporation (TSE:7271) has a significant debt burden, with JP¥16.2b in debt and JP¥5.47b in cash, resulting in a net debt of JP¥10.7b. The company's liabilities exceed its market capitalization, raising concerns about its financial health. Despite growing its EBIT by 268% in the last year, Yasunaga's high net debt to EBITDA ratio and negative free cash flow make its debt levels risky. Shareholders should be cautious about the company's leverage.