The company maintains a manageable debt-to-equity ratio of 0.54, though this is overshadowed by a massive accumulated deficit in retained earnings reaching $1.9B.
| Total Current Assets | 530.39M | 143.34M | 530.39M | 234.68M | 738.54M | 409.57M |
| Cash & Short-Term Investments | 437.91M | 104.38M | 437.91M | 177.89M | 657.42M | 364.26M |
| Cash Only | 337.91M | 104.38M | 337.91M | 177.89M | 657.42M | 364.26M |
| Short-Term Investments | 100M | 0 | 100M | 0 | 0 | 0 |
| Accounts Receivable | 81.07M | 26.36M | 81.07M | 50.08M | 72.26M | 40.69M |
| Days Sales Outstanding | 61.93 | 21.85 | 164.99 | 392.55 | 56.88 | 68.69 |
| Inventory | 0 | 0 | 0 | 5.69M | 8.54M | 4.36M |
| Days Inventory Outstanding | 73.06 | - | - | 68.06 | 28.75 | 47.41 |
| Other Current Assets | 84.26K | 153.76K | 84.26K | 1.03M | 329.95K | 272.62K |
| Total Non-Current Assets | 45.17M | 47.16M | 45.17M | 218.35M | 13.51M | 27.66M |
| Property, Plant & Equipment | 13.03M | 4.4M | 13.03M | 5.53M | 12.86M | 6.35M |
| Fixed Asset Turnover | 20.79x | 100.09x | 13.76x | 8.41x | 36.06x | 34.04x |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 0 | 10.62M | 0 | 0 | 0 | 0 |
| Long-Term Investments | 0 | 0 | 0 | 0 | 0 | 4.56M |
| Other Non-Current Assets | 32.14M | 32.14M | 32.14M | 212.82M | 647.74K | 834.74K |
| Total Assets | 575.57M | 190.5M | 575.57M | 453.04M | 752.05M | 437.23M |
| Asset Turnover | 0.39x | 2.31x | 0.31x | 0.10x | 0.62x | 0.49x |
| Asset Growth % | 47.89% | -66.9% | 27.05% | -39.76% | 72% | - |
| Total Current Liabilities | 193M | 82.61M | 193M | 176.08M | 111.38M | 55.98M |
| Accounts Payable | 0 | 12.17M | 0 | 0 | 0 | 0 |
| Days Payables Outstanding | - | 20.83 | - | - | - | - |
| Short-Term Debt | 119.19M | 15.2M | 119.19M | 123.82M | 11.77M | 10.77M |
| Deferred Revenue (Current) | 1.4M | 0 | 0 | 1.4M | 0 | 108.54K |
| Other Current Liabilities | 0 | 0 | 0 | 0 | -23.58M | 0 |
| Current Ratio | 2.75x | 1.74x | 2.75x | 1.33x | 6.63x | 7.32x |
| Quick Ratio | 2.75x | 1.74x | 2.75x | 1.30x | 6.55x | 7.24x |
| Cash Conversion Cycle | 134.99 | - | - | - | - | - |
| Total Non-Current Liabilities | 51.84M | 33.86M | 51.84M | 68.44M | 49.86M | 58.09M |
| Long-Term Debt | 49.06M | 33.86M | 49.06M | 68.25M | 46.32M | 58.09M |
| Capital Lease Obligations | 9.69M | 0 | 2.78M | 0 | 3.47M | 0 |
| Deferred Tax Liabilities | 311.7K | 0 | 0 | 188.5K | 66.23K | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Liabilities | 244.84M | 116.47M | 244.84M | 244.52M | 161.23M | 114.07M |
| Total Debt | 179.27M | 51.84M | 179.27M | 195.54M | 69.79M | 74.73M |
| Net Debt | -158.64M | -52.54M | -158.64M | 17.65M | -587.63M | -289.53M |
| Debt / Equity | 0.54x | 0.70x | 0.54x | 0.94x | 0.12x | 0.23x |
| Debt / EBITDA | -0.19x | - | - | - | - | - |
| Net Debt / EBITDA | 0.16x | - | - | - | - | - |
| Interest Coverage | -1.11x | -143.20x | -240.02x | -143.91x | -454.52x | -61.55x |
| Total Equity | 330.72M | 74.03M | 330.72M | 208.51M | 590.82M | 323.16M |
| Equity Growth % | 85.78% | -77.62% | 58.61% | -64.71% | 82.83% | - |
| Book Value per Share | 114.21 | 4.91 | 112.00 | 68.50 | 194.10 | 106.17 |
| Total Shareholders' Equity | 330.72M | 74.03M | 330.72M | 208.51M | 590.82M | 323.16M |
| Common Stock | 50M | 50M | 50M | 100M | 334.58M | 234.51M |
| Retained Earnings | -1.93B | -2.19B | -1.93B | -1.59B | -1.27B | -665.86M |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent Operating Cash Burn
As reported in financial statements, Earlyworks' total assets fluctuated significantly from $453.0M in 2023Q4 to $575.6M by 2024Q4, illustrating a balance sheet trajectory that remains highly sensitive to the timing of project-based contract cycles rather than steady, organic capital accumulation or long-term asset base expansion.
The erratic movement in total assets suggests that the company's balance sheet is currently a reflection of short-term project activity rather than a stable foundation of productive capital. Investors should monitor whether this volatility persists as it may indicate an inability to build a durable asset base capable of supporting long-term enterprise operations.
According to recent financial data, the company maintains a debt-to-equity ratio of 0.54 as of 2024Q4, suggesting that management has opted to avoid aggressive debt financing despite the persistent operating losses that continue to erode the firm's retained earnings and overall equity position over time.
While the current leverage profile appears manageable, the reliance on equity to fund operations in the face of deep losses warrants caution regarding future dilution. The absence of significant debt suggests that the company is not currently facing immediate solvency pressure, though this may change if cash reserves are depleted.
Based on reported figures, Earlyworks held $337.9M in cash as of 2024Q4, providing a current ratio of 2.75, which serves as a temporary liquidity buffer against the company's ongoing cash burn and the inherent unpredictability of its project-based revenue recognition and collection cycles.
The current liquidity position appears adequate to support near-term operations, yet the rapid decline in cash from $701.4M in 2024Q2 highlights the high cost of sustaining the current growth strategy. Analysts should scrutinize the burn rate closely, as the current liquidity cushion may diminish rapidly if the company fails to achieve operational efficiency.
As indicated by the provided data, the company's retained earnings have plummeted to a deficit of $1.9B by 2024Q4, a critical distortion that suggests the firm's historical growth has been achieved at the expense of significant shareholder value destruction rather than through profitable, self-sustaining business activities.
This massive accumulated deficit serves as a stark reminder that headline revenue growth does not equate to fundamental business health. Investors should investigate whether this trend is a permanent feature of the company's business model or if there is a credible path to reversing these losses through improved operational leverage.
Quick answers to the most common questions about buying ELWS stock.
As of 2025, Earlyworks Co., Ltd (ELWS) had total assets of $190.5M including $143.3M in current assets.
Earlyworks Co., Ltd (ELWS) carries total debt of $51.8M, offset by $104.4M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Earlyworks Co., Ltd (ELWS) has total shareholders' equity (book value) of $74.0M ($4.91 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Earlyworks Co., Ltd (ELWS) reported a current ratio of 1.74x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.