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华尔街日报Is AIRO Group Holdings (NASDAQ:AIRO) A Risky Investment?
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' 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 AIRO Group Holdings, Inc. (NASDAQ:AIRO) does have debt on its balance sheet. But is this debt a concern to shareholders?
When Is Debt A Problem?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. 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, plenty of companies use debt to fund growth, without any negative consequences. The first step when considering a company's debt levels is to consider its cash and debt together.
What Is AIRO Group Holdings's Debt?
As you can see below, AIRO Group Holdings had US$12.5m of debt at September 2025, down from US$33.6m a year prior. But it also has US$83.5m in cash to offset that, meaning it has US$71.0m net cash.
A Look At AIRO Group Holdings' Liabilities
We can see from the most recent balance sheet that AIRO Group Holdings had liabilities of US$32.1m falling due within a year, and liabilities of US$2.96m due beyond that. Offsetting this, it had US$83.5m in cash and US$1.64m in receivables that were due within 12 months. So it can boast US$50.1m more liquid assets than total liabilities.
This surplus suggests that AIRO Group Holdings has a conservative balance sheet, and could probably eliminate its debt without much difficulty. Simply put, the fact that AIRO Group Holdings 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 future earnings, more than anything, that will determine AIRO Group Holdings's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
Check out our latest analysis for AIRO Group Holdings
Over 12 months, AIRO Group Holdings reported revenue of US$82m, which is a gain of 41%, although it did not report any earnings before interest and tax. Shareholders probably have their fingers crossed that it can grow its way to profits.
So How Risky Is AIRO Group Holdings?
By their very nature companies that are losing money are more risky than those with a long history of profitability. And in the last year AIRO Group Holdings had an earnings before interest and tax (EBIT) loss, truth be told. Indeed, in that time it burnt through US$15m of cash and made a loss of US$4.8m. But the saving grace is the US$71.0m on the balance sheet. That kitty means the company can keep spending for growth for at least two years, at current rates. With very solid revenue growth in the last year, AIRO Group Holdings may be on a path to profitability. Pre-profit companies are often risky, but they can also offer great rewards. When analysing debt levels, the balance sheet is the obvious place to start. However, not all investment risk resides within the balance sheet - far from it. To that end, you should be aware of the 1 warning sign we've spotted with AIRO Group Holdings .
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.
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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.