WEBULL

Does Outin Futures (KOSDAQ:227610) Have A Healthy Balance Sheet?

Simply Wall St · 3d 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.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. Importantly, Outin Futures Co., Ltd (KOSDAQ:227610) does carry debt. But is this debt a concern to shareholders?

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

What Risk Does Debt Bring?

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. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. 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. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. When we think about a company's use of debt, we first look at cash and debt together.

What Is Outin Futures's Debt?

As you can see below, at the end of September 2025, Outin Futures had ₩22.3b of debt, up from ₩20.5b a year ago. Click the image for more detail. However, it does have ₩7.33b in cash offsetting this, leading to net debt of about ₩15.0b.

debt-equity-history-analysis
KOSDAQ:A227610 Debt to Equity History January 4th 2026

How Healthy Is Outin Futures' Balance Sheet?

The latest balance sheet data shows that Outin Futures had liabilities of ₩30.9b due within a year, and liabilities of ₩3.50b falling due after that. Offsetting these obligations, it had cash of ₩7.33b as well as receivables valued at ₩10.6b due within 12 months. So it has liabilities totalling ₩16.5b more than its cash and near-term receivables, combined.

This deficit isn't so bad because Outin Futures is worth ₩30.6b, and thus could probably raise enough capital to shore up its balance sheet, if the need arose. But it's clear that we should definitely closely examine whether it can manage its debt without dilution. There's no doubt that we learn most about debt from the balance sheet. But you can't view debt in total isolation; since Outin Futures will need earnings to service that debt. 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.

View our latest analysis for Outin Futures

Over 12 months, Outin Futures reported revenue of ₩42b, which is a gain of 22%, although it did not report any earnings before interest and tax. With any luck the company will be able to grow its way to profitability.

Caveat Emptor

While we can certainly appreciate Outin Futures's revenue growth, its earnings before interest and tax (EBIT) loss is not ideal. To be specific the EBIT loss came in at ₩1.5b. 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. So we think its balance sheet is a little strained, though not beyond repair. Another cause for caution is that is bled ₩766m in negative free cash flow over the last twelve months. So suffice it to say we do consider the stock to be risky. 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. We've identified 1 warning sign with Outin Futures , and understanding them should be part of your investment process.

If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.