WEBULL

Does Laserssel (KOSDAQ:412350) Have A Healthy Balance Sheet?

Simply Wall St · 1d ago

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' 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. We note that Laserssel Co. Ltd. (KOSDAQ:412350) does have debt on its balance sheet. But is this debt a concern to shareholders?

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Why Does Debt Bring Risk?

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. If things get really bad, the lenders can take control of the business. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. When we think about a company's use of debt, we first look at cash and debt together.

What Is Laserssel's Debt?

You can click the graphic below for the historical numbers, but it shows that as of September 2025 Laserssel had ₩13.2b of debt, an increase on ₩9.92b, over one year. However, it also had ₩3.83b in cash, and so its net debt is ₩9.41b.

debt-equity-history-analysis
KOSDAQ:A412350 Debt to Equity History December 10th 2025

How Healthy Is Laserssel's Balance Sheet?

The latest balance sheet data shows that Laserssel had liabilities of ₩13.0b due within a year, and liabilities of ₩7.00b falling due after that. On the other hand, it had cash of ₩3.83b and ₩3.86b worth of receivables due within a year. So it has liabilities totalling ₩12.3b more than its cash and near-term receivables, combined.

This is a mountain of leverage relative to its market capitalization of ₩17.9b. Should its lenders demand that it shore up the balance sheet, shareholders would likely face severe dilution. There's no doubt that we learn most about debt from the balance sheet. But it is Laserssel's earnings that will influence how the balance sheet holds up in the future. So when considering debt, it's definitely worth looking at the earnings trend. Click here for an interactive snapshot.

View our latest analysis for Laserssel

In the last year Laserssel had a loss before interest and tax, and actually shrunk its revenue by 45%, to ₩2.5b. That makes us nervous, to say the least.

Caveat Emptor

While Laserssel's falling revenue is about as heartwarming as a wet blanket, arguably its earnings before interest and tax (EBIT) loss is even less appealing. Indeed, it lost a very considerable ₩13b at the EBIT level. When we look at that and recall the liabilities on its balance sheet, relative to cash, it seems unwise to us for the company to have any debt. Quite frankly we think the balance sheet is far from match-fit, although it could be improved with time. However, it doesn't help that it burned through ₩7.9b of cash over the last year. So suffice it to say we consider the stock very risky. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately, every company can contain risks that exist outside of the balance sheet. To that end, you should learn about the 5 warning signs we've spotted with Laserssel (including 3 which are potentially serious) .

If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.