WEBULL

Is Curocell (KOSDAQ:372320) Using Too Much Debt?

Simply Wall St · 2d ago

Warren Buffett famously said, '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. As with many other companies Curocell Inc. (KOSDAQ:372320) makes use of debt. But the real question is whether this debt is making the company risky.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Why Does Debt Bring Risk?

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. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. 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. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. When we examine debt levels, we first consider both cash and debt levels, together.

What Is Curocell's Debt?

You can click the graphic below for the historical numbers, but it shows that as of September 2025 Curocell had ₩53.7b of debt, an increase on ₩36.6b, over one year. However, it does have ₩30.8b in cash offsetting this, leading to net debt of about ₩22.9b.

debt-equity-history-analysis
KOSDAQ:A372320 Debt to Equity History January 5th 2026

How Strong Is Curocell's Balance Sheet?

We can see from the most recent balance sheet that Curocell had liabilities of ₩84.4b falling due within a year, and liabilities of ₩8.81b due beyond that. Offsetting these obligations, it had cash of ₩30.8b as well as receivables valued at ₩104.5m due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by ₩62.3b.

Of course, Curocell has a market capitalization of ₩707.2b, so these liabilities are probably manageable. Having said that, it's clear that we should continue to monitor its balance sheet, lest it change for the worse. There's no doubt that we learn most about debt from the balance sheet. But it is Curocell'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 Curocell

Given its lack of meaningful operating revenue, Curocell shareholders no doubt hope it can fund itself until it has a profitable product.

Caveat Emptor

Over the last twelve months Curocell produced an earnings before interest and tax (EBIT) loss. To be specific the EBIT loss came in at ₩38b. 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 ₩33b in negative free cash flow over the last twelve months. So suffice it to say we do consider the stock to be risky. There's no doubt that we learn most about debt from the balance sheet. But ultimately, every company can contain risks that exist outside of the balance sheet. For example, we've discovered 2 warning signs for Curocell that you should be aware of before investing here.

When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.