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Is T-Robotics.Co.Ltd (KOSDAQ:117730) Using Debt In A Risky Way?

Simply Wall St · 1d ago

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of permanent loss is the risk I worry about... and every practical investor I know worries about.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. Importantly, T-Robotics.Co.,Ltd. (KOSDAQ:117730) does carry debt. But the real question is whether this debt is making the company risky.

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When Is Debt Dangerous?

Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. Of course, plenty of companies use debt to fund growth, without any negative consequences. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.

How Much Debt Does T-Robotics.Co.Ltd Carry?

As you can see below, T-Robotics.Co.Ltd had ₩31.5b of debt, at September 2025, which is about the same as the year before. You can click the chart for greater detail. However, its balance sheet shows it holds ₩36.0b in cash, so it actually has ₩4.51b net cash.

debt-equity-history-analysis
KOSDAQ:A117730 Debt to Equity History December 8th 2025

A Look At T-Robotics.Co.Ltd's Liabilities

According to the last reported balance sheet, T-Robotics.Co.Ltd had liabilities of ₩71.3b due within 12 months, and liabilities of ₩6.10b due beyond 12 months. On the other hand, it had cash of ₩36.0b and ₩9.75b worth of receivables due within a year. So it has liabilities totalling ₩31.6b more than its cash and near-term receivables, combined.

Since publicly traded T-Robotics.Co.Ltd shares are worth a total of ₩392.8b, it seems unlikely that this level of liabilities would be a major threat. Having said that, it's clear that we should continue to monitor its balance sheet, lest it change for the worse. Despite its noteworthy liabilities, T-Robotics.Co.Ltd boasts net cash, so it's fair to say it does not have a heavy debt load! The balance sheet is clearly the area to focus on when you are analysing debt. But it is T-Robotics.Co.Ltd's earnings that will influence how the balance sheet holds up in the future. So if you're keen to discover more about its earnings, it might be worth checking out this graph of its long term earnings trend.

Check out our latest analysis for T-Robotics.Co.Ltd

In the last year T-Robotics.Co.Ltd had a loss before interest and tax, and actually shrunk its revenue by 47%, to ₩47b. To be frank that doesn't bode well.

So How Risky Is T-Robotics.Co.Ltd?

Although T-Robotics.Co.Ltd had an earnings before interest and tax (EBIT) loss over the last twelve months, it generated positive free cash flow of ₩1.1b. So taking that on face value, and considering the net cash situation, we don't think that the stock is too risky in the near term. With revenue growth uninspiring, we'd really need to see some positive EBIT before mustering much enthusiasm for this business. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet - far from it. Be aware that T-Robotics.Co.Ltd is showing 3 warning signs in our investment analysis , and 2 of those shouldn't be ignored...

At the end of the day, it's often better to focus on companies that are free from net debt. You can access our special list of such companies (all with a track record of profit growth). It's free.