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Health Check: How Prudently Does QuickLogic (NASDAQ:QUIK) Use Debt?

Simply Wall St · 5d 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. We note that QuickLogic Corporation (NASDAQ:QUIK) does have debt on its balance sheet. But the more important question is: how much risk is that debt creating?

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What Risk Does Debt Bring?

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. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. 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. The first step when considering a company's debt levels is to consider its cash and debt together.

What Is QuickLogic's Debt?

You can click the graphic below for the historical numbers, but it shows that QuickLogic had US$16.8m of debt in September 2025, down from US$23.1m, one year before. However, its balance sheet shows it holds US$17.3m in cash, so it actually has US$580.0k net cash.

debt-equity-history-analysis
NasdaqCM:QUIK Debt to Equity History January 6th 2026

How Healthy Is QuickLogic's Balance Sheet?

Zooming in on the latest balance sheet data, we can see that QuickLogic had liabilities of US$20.6m due within 12 months and liabilities of US$747.0k due beyond that. Offsetting these obligations, it had cash of US$17.3m as well as receivables valued at US$4.82m due within 12 months. So it actually has US$773.0k more liquid assets than total liabilities.

Having regard to QuickLogic's size, it seems that its liquid assets are well balanced with its total liabilities. So it's very unlikely that the US$115.5m company is short on cash, but still worth keeping an eye on the balance sheet. Simply put, the fact that QuickLogic has more cash than debt is arguably a good indication that it can manage its debt safely. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately the future profitability of the business will decide if QuickLogic can strengthen its balance sheet over time. So if you're focused on the future you can check out this free report showing analyst profit forecasts.

View our latest analysis for QuickLogic

In the last year QuickLogic had a loss before interest and tax, and actually shrunk its revenue by 25%, to US$16m. To be frank that doesn't bode well.

So How Risky Is QuickLogic?

We have no doubt that loss making companies are, in general, riskier than profitable ones. And in the last year QuickLogic had an earnings before interest and tax (EBIT) loss, truth be told. Indeed, in that time it burnt through US$7.3m of cash and made a loss of US$9.6m. However, it has net cash of US$580.0k, so it has a bit of time before it will need more capital. Overall, its balance sheet doesn't seem overly risky, at the moment, but we're always cautious until we see the positive free cash flow. 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. For example, we've discovered 3 warning signs for QuickLogic that you should be aware of before investing here.

Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.