Puloon Technology Inc. (KOSDAQ:094940) has been a topic of discussion for investors when it comes to its use of debt. While debt can be risky for a business if it cannot easily fulfill its obligations, Puloon Technology appears to have a conservative balance sheet. The company had ₩3.18b in debt in December 2024, but also had ₩9.86b in cash, resulting in net cash of ₩6.68b.
Despite the debt, Puloon Technology has shown an increase in EBIT by 23% in the past year, making it easier for the company to pay down debt. While the company has a net cash position and more liquid assets than liabilities, it is essential to also consider its ability to convert earnings into free cash flow to manage the debt effectively.
Overall, Puloon Technology’s debt does not appear to be a significant risk at the moment. While it’s essential to focus on the balance sheet, it’s also crucial to consider other potential risks that may not be evident from financial data alone. Investors should be aware of these risks and make informed decisions when it comes to investing in Puloon Technology or any other company.
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