The company maintains a conservative capital structure with a 0.20 debt-to-equity ratio, though total assets of $72.2 million are heavily weighted toward non-liquid PPE and goodwill.
| Total Current Assets | 16.08M | 11.94M | 10.82M | 14.06M | 11.4M | 7.09M | 5.2M |
| Cash & Short-Term Investments | 1.89M | 909.72K | 815.67K | 2.09M | 484.39K | 1.43M | 280.84K |
| Cash Only | 1.89M | 909.72K | 775.69K | 2.09M | 484.39K | 1.43M | 280.84K |
| Short-Term Investments | 0 | 0 | 39.98K | 0 | 0 | 0 | 0 |
| Accounts Receivable | 10.67M | 6.33M | 6.59M | 7.73M | 6.04M | 3.63M | 3.73M |
| Days Sales Outstanding | 198.71 | 163.84 | 150.4 | 139.15 | 101.49 | 118.78 | 146.5 |
| Inventory | 2.46M | 2.67M | 2.35M | 2.61M | 2.97M | 1.43M | 897.92K |
| Days Inventory Outstanding | 68.01 | 101.82 | 79.77 | 71.86 | 77.06 | 77.62 | 61.82 |
| Other Current Assets | 105.78K | 28.52K | 28.47K | 97.3K | 156.06K | 93.08K | 15.48K |
| Total Non-Current Assets | 56.11M | 53.08M | 21.31M | 22.1M | 10.45M | 4.95M | 4.72M |
| Property, Plant & Equipment | 12.29M | 10.39M | 11.43M | 13.6M | 6M | 4.07M | 3.97M |
| Fixed Asset Turnover | 1.59x | 1.36x | 1.40x | 1.49x | 3.62x | 2.74x | 2.34x |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 4.5M | 4.43M | 4.66M | 4.96M | 722.36K | 726.58K | 703.4K |
| Long-Term Investments | 34.32M | 32.88M | -4.7M | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 4.95M | 5.34M | 9.91M | 3.54M | 3.73M | 147.11K | 44.03K |
| Total Assets | 72.19M | 65.01M | 32.13M | 36.16M | 21.85M | 13.57M | 9.91M |
| Asset Turnover | 0.27x | 0.22x | 0.50x | 0.56x | 0.99x | 0.82x | 0.94x |
| Asset Growth % | 11.04% | 102.34% | -11.16% | 65.54% | 61% | 36.9% | - |
| Total Current Liabilities | 14.36M | 8.21M | 7.68M | 12.44M | 9.69M | 5.53M | 4.65M |
| Accounts Payable | 1.88M | 1.38M | 1.38M | 2.96M | 2.45M | 950.64K | 475.13K |
| Days Payables Outstanding | 51.79 | 52.55 | 46.82 | 81.31 | 63.56 | 51.74 | 32.71 |
| Short-Term Debt | 11.52M | 6.08M | 5.73M | 6.02M | 5.66M | 3.82M | 3.53M |
| Deferred Revenue (Current) | 162.12K | 219.93K | 178.13K | 57.91K | 169.09K | 16.85K | 36.03K |
| Other Current Liabilities | 364.24K | 210.83K | 228.18K | 2.76M | 691.79K | 600.44K | 400.83K |
| Current Ratio | 1.12x | 1.45x | 1.41x | 1.13x | 1.18x | 1.28x | 1.12x |
| Quick Ratio | 0.95x | 1.13x | 1.10x | 0.92x | 0.87x | 1.02x | 0.92x |
| Cash Conversion Cycle | 214.92 | 213.1 | 183.35 | 129.7 | 114.99 | 144.67 | 175.61 |
| Total Non-Current Liabilities | 0 | 3.31M | 3.34M | 10.25M | 670.93K | 0 | 112.12K |
| Long-Term Debt | 0 | 3.31M | 3.34M | 10.15M | 0 | 0 | 0 |
| Capital Lease Obligations | 0 | 0 | 0 | 46.62K | 292.13K | 0 | 73.01K |
| Deferred Tax Liabilities | 0 | 0 | 0 | 15.22K | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 | 42.22K | 378.8K | 0 | 39.11K |
| Total Liabilities | 14.36M | 11.52M | 11.02M | 22.69M | 10.36M | 5.53M | 4.76M |
| Total Debt | 11.52M | 9.38M | 9.11M | 16.53M | 6.48M | 3.9M | 3.72M |
| Net Debt | 9.63M | 8.47M | 8.33M | 14.44M | 6M | 2.47M | 3.44M |
| Debt / Equity | 0.20x | 0.18x | 0.43x | 1.23x | 0.56x | 0.49x | 0.72x |
| Debt / EBITDA | 3.55x | - | 4.41x | 4.62x | 1.40x | 1.24x | 1.07x |
| Net Debt / EBITDA | 2.97x | - | 4.03x | 4.04x | 1.29x | 0.78x | 0.99x |
| Interest Coverage | 5.18x | -3.02x | 2.45x | 14.97x | 7.37x | 7.88x | 11.25x |
| Total Equity | 57.83M | 53.49M | 21.11M | 13.47M | 11.49M | 8.04M | 5.15M |
| Equity Growth % | 8.11% | 153.43% | 56.65% | 17.29% | 42.9% | 56.18% | - |
| Book Value per Share | 0.79 | 0.73 | 1.80 | 1.12 | 0.95 | 0.67 | 0.43 |
| Total Shareholders' Equity | 57.83M | 53.49M | 21.11M | 13.47M | 11.49M | 8.04M | 5.15M |
| Common Stock | 7.34K | 7.34K | 1.22K | 1K | 1K | 1.8K | 1.8K |
| Retained Earnings | 13.67M | 11.72M | 13.61M | 12.74M | 9.81M | 6.61M | 4.18M |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | 788.63K | -1.24M | -536.05K | 123.11K | 1.07M | 822.37K | 354.38K |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Thin liquidity and working capital
According to the latest financial data, Hongli Group's total assets have surged to $72.2 million as of 2025Q4, representing a significant expansion from the $32.1 million reported in 2023Q4, though this growth appears heavily reliant on non-cash asset accumulation rather than liquid capital reserves.
The rapid increase in the asset base suggests an aggressive scaling of operations, likely to support the recent revenue growth. However, investors should monitor whether this asset expansion is creating genuine long-term value or if it is merely inflating the balance sheet with less liquid items that do not contribute to operational flexibility.
As reported in recent filings, HLP maintains a low debt-to-equity ratio of 0.20, which appears to reflect a strategic avoidance of heavy borrowing despite the capital-intensive nature of the steel processing industry and the company's ongoing need for facility investment.
While the low leverage ratio suggests a conservative financial posture, it may also indicate limited access to traditional credit markets, forcing the company to rely on internal cash flows. This reliance on internal funding may leave the firm exposed if cyclical downturns in the mining sector compress margins and restrict cash availability.
Based on the 2025Q4 balance sheet, the company holds only $1.9 million in cash against $14.4 million in total liabilities, resulting in a current ratio of 1.12 that suggests a narrow margin of safety for meeting short-term obligations during periods of operational volatility.
The current ratio has trended downward from 1.67 in 2023Q2, indicating that liquidity is tightening as the company scales. This trend warrants further investigation, as a further decline could leave the company unable to absorb unexpected supply chain disruptions or sudden shifts in raw material pricing.
As evidenced by the 2025Q4 financial statements, equity has grown to $57.8 million, largely supported by a steady accumulation of retained earnings which reached $13.7 million, signaling that the company is successfully reinvesting profits to bolster its capital base rather than relying solely on external dilution.
The growth in equity provides a stronger foundation for the company's long-term operations, yet the quality of this equity remains tied to the underlying profitability of its custom steel profiles. Investors should monitor whether future earnings can continue to support this growth without requiring additional equity financing that could dilute existing shareholders.
Based on reported figures, HLP carries $4.5 million in goodwill and $12.3 million in net PPE, which together represent a significant portion of the company's equity, potentially exposing the balance sheet to impairment risks if the specialized mining machinery market faces a structural downturn.
The concentration of value in intangible and fixed assets suggests that the company's book value is highly sensitive to the performance of its specific manufacturing niche. If the competitive landscape shifts or if the proprietary tooling designs lose their relevance, these assets may require write-downs that would negatively impact the company's reported financial health.
Quick answers to the most common questions about buying HLP stock.
As of 2025, Hongli Group Inc. (HLP) had total assets of $72.2M including $16.1M in current assets.
Hongli Group Inc. (HLP) carries total debt of $11.5M, offset by $1.9M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Hongli Group Inc. (HLP) has total shareholders' equity (book value) of $57.8M ($0.79 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Hongli Group Inc. (HLP) reported a current ratio of 1.12x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.