Magnitude International Ltd

Singapore electrical contractor with collapsing revenue, barely-positive earnings, sub-1 interest coverage and very high leverage.

Strengths

• Current and quick ratios ~1.24 keep near-term liquidity adequate
• Customer concentration easing (largest customer 30.6% vs 70.4% prior)

Risks

• Revenue down 34% (7th pct) and net income down 98% (15th); interest coverage 0.78 — operating profit fails to cover interest
• Debt/equity 3.9 (95.5th pct), cash runway 3.2 quarters, non-recurring tender-based contracts

Notable findings

• No interest coverageInterest coverage 0.78 (cannot cover interest)
• High leverageHigh leverage (debt/equity 3.90)
• Cash burnNegative free cash flow (-0.7M)
• Customer concentration~88% of revenue from one customer/distributor — During the fiscal years ended April 30, 2023, 2024 and 2025, total revenue derived from our five largest customers accounted for approximately 87
• Revenue declineRevenue -34.4% YoY