Is curacleltd (KOSDAQ:365270) A Risky Investment?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' 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 can see that curacle co.,ltd. (KOSDAQ:365270) does use debt in its business. But the more important question is: how much risk is that debt creating?

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When Is Debt A Problem?

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. 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. 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 curacleltd Carry?

You can click the graphic below for the historical numbers, but it shows that curacleltd had ₩13.1b of debt in September 2025, down from ₩19.7b, one year before. But on the other hand it also has ₩28.2b in cash, leading to a ₩15.1b net cash position.

How Healthy Is curacleltd's Balance Sheet?

The latest balance sheet data shows that curacleltd had liabilities of ₩13.1b due within a year, and liabilities of ₩3.59b falling due after that. On the other hand, it had cash of ₩28.2b and ₩1.04b worth of receivables due within a year. So it actually has ₩12.6b more liquid assets than total liabilities.

This surplus suggests that curacleltd has a conservative balance sheet, and could probably eliminate its debt without much difficulty. Simply put, the fact that curacleltd has more cash than debt is arguably a good indication that it can manage its debt safely. When analysing debt levels, the balance sheet is the obvious place to start. But it is curacleltd'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 curacleltd

Over 12 months, curacleltd made a loss at the EBIT level, and saw its revenue drop to ₩1.1b, which is a fall of 36%. To be frank that doesn't bode well.

So How Risky Is curacleltd?

We have no doubt that loss making companies are, in general, riskier than profitable ones. And in the last year curacleltd had an earnings before interest and tax (EBIT) loss, truth be told. And over the same period it saw negative free cash outflow of ₩13b and booked a ₩17b accounting loss. However, it has net cash of ₩15.1b, 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. 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 instance, we've identified 3 warning signs for curacleltd (2 are potentially serious) you should be aware of.

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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.