Consolidated financial position as of August 31, 2026, against fiscal year-end 2025 — with cross-statement ratio analysis, a derived cash-flow bridge, and a reconciled view of where this year's earnings went.
Profitability is strong and improving — net margin 14.0%, annualized ROE 31.9%, near-zero leverage. The balance sheet risk is not solvency; it is working-capital absorption. Receivables and inventory grew $1.64M against a revenue run-rate up only 15.6%, extending the cash conversion cycle from 60 to 106 days. An estimated $1.24M of current assets now sits beyond what growth alone explains.
Derived from balance-sheet movements and year-to-date net income, this bridge reconciles to the actual change in cash to the penny. It shows the single most important dynamic in this balance sheet: $1.76M of working-capital build consumed 1.5× the period's net income.
| Financial row | Aug 2026 | FY 2025 | Variance $ | Variance % | % Assets '26 | % Assets '25 |
|---|---|---|---|---|---|---|
| Current assets | ||||||
| Cash & undeposited funds (1000, 1090) | $2,603,008 | $2,278,332 | +$324,676 | +14.3% | 37.0% | 46.2% |
| Accounts receivable, net (1100–1130) | $2,163,312 | $1,459,305 | +$704,007 | +48.2% | 30.8% | 29.6% |
| Inventory, incl. in-transit (1200, 1215) | $2,128,362 | $1,197,300 | +$931,062 | +77.8% | 30.3% | 24.3% |
| Prepaid expenses & advances (1400, 1460) | $120,085 | $0 | +$120,085 | new | 1.7% | — |
| Total current assets | $7,014,767 | $4,934,937 | +$2,079,830 | +42.2% | 99.8% | 100.0% |
| Fixed assets | ||||||
| Fixed assets, gross (1600) | $12,100 | $0 | +$12,100 | new | 0.2% | — |
| Accumulated depreciation (1700) | ($842) | $0 | ($842) | new | 0.0% | — |
| Total assets | $7,026,025 | $4,934,937 | +$2,091,089 | +42.4% | 100.0% | 100.0% |
| Current liabilities | ||||||
| Accounts payable (2000, 2010) | $1,229,000 | $986,917 | +$242,084 | +24.5% | 17.5% | 20.0% |
| Accrued liabilities (2210, 2220) | $33,584 | $7,112 | +$26,473 | +372.3% | 0.5% | 0.1% |
| Sales tax payable — 12 states (2300) | $228,116 | $119,745 | +$108,371 | +90.5% | 3.2% | 2.4% |
| Total current liabilities | $1,490,701 | $1,113,774 | +$376,927 | +33.8% | 21.2% | 22.6% |
| Equity | ||||||
| Capital stock (3510) | $2,908,304 | $2,368,383 | +$539,921 | +22.8% | 41.4% | 48.0% |
| Retained earnings | $1,452,780 | $284,066 | +$1,168,714 | +411.4% | 20.7% | 5.8% |
| Net income, current YTD | $1,174,240 | $1,168,714 | +$5,526 | +0.5% | 16.7% | 23.7% |
| Total equity | $5,535,324 | $3,821,163 | +$1,714,161 | +44.9% | 78.8% | 77.4% |
| Total liabilities & equity | $7,026,025 | $4,934,937 | +$2,091,089 | +42.4% | 100.0% | 100.0% |
The Retained Earnings variance (+411.4%) is the mechanical roll-forward of FY2025 net income at year-end close — expected, not anomalous. Common-size columns (% of total assets) are a custom addition to the standard NetSuite report.
Every day of cash-cycle extension at the current revenue run-rate ties up roughly $35K of cash. The 45-day extension accounts for the bulk of the $1.76M working-capital build.
Holding FY2025 efficiency constant and scaling balances by the growth in their annualized drivers (revenue +15.6% for AR; COGS +13.8% for inventory), expected balances would be:
| Balance | Actual Aug 2026 | Expected at FY25 efficiency | Excess |
|---|---|---|---|
| Accounts receivable | $2,163,312 | $1,687,248 | $476,064 |
| Inventory | $2,128,362 | $1,362,286 | $766,076 |
| Cash tied up beyond growth | $1,242,140 |
| Metric | Formula | Aug 2026 | FY 2025 | Δ | Reading |
|---|---|---|---|---|---|
| Working capital | CA − CL | $5,524,066 | $3,821,163 | +$1,702,903 | Strong |
| Current ratio | CA ÷ CL | 4.71 | 4.43 | +0.27 | Very strong |
| Quick ratio | (cash + AR) ÷ CL | 3.20 | 3.36 | −0.16 | Strong; softening |
| Cash ratio | cash ÷ CL | 1.75 | 2.05 | −0.30 | Quality shifting to inventory |
| Metric | Formula | FY26 YTD | FY 2025 | Δ | Reading |
|---|---|---|---|---|---|
| Gross margin | GP ÷ revenue | 39.2% | 38.2% | +1.0 pt | Improving |
| Operating margin | operating income ÷ revenue | 14.2% | 11.0% | +3.3 pts | Opex leverage |
| Opex ratio | opex ÷ revenue | 25.0% | 27.2% | −2.3 pts | Scaling efficiently |
| Net margin | NI ÷ revenue | 14.0% | 10.7% | +3.3 pts | Strong |
| ROA, annualized | NI × (365/243) ÷ assets | 25.1% | 23.7% | +1.4 pts | Excellent |
| ROE, annualized | NI × (365/243) ÷ equity | 31.9% | 30.6% | +1.3 pts | Excellent |
| Component | Formula | Aug 2026 | FY 2025 | Direction |
|---|---|---|---|---|
| Net margin | NI ÷ revenue | 14.0% | 10.7% | Driving ROE up |
| Asset turnover, annualized | revenue ÷ assets | 1.79 | 2.21 | Dragging — asset bloat |
| Equity multiplier | assets ÷ equity | 1.27 | 1.29 | Neutral — unlevered |
| ROE = margin × turnover × leverage | 31.9% | 30.6% | +1.3 pts |
The decomposition isolates the tension: margin gains (+3.3 pts) are being partially consumed by turnover losses (−0.41). If asset turnover recovers to FY25 levels at current margins, implied ROE ≈ 39%.
| Metric | Formula | Aug 2026 | FY 2025 | Δ | Reading |
|---|---|---|---|---|---|
| Debt-to-equity | liabilities ÷ equity | 0.27 | 0.29 | −0.02 | Minimal leverage |
| Equity ratio | equity ÷ assets | 78.8% | 77.4% | +1.4 pts | Self-funded |
| Interest coverage | operating income ÷ interest | 72.7× | 48.0× | +24.7× | No solvency concern |
Inventory +77.8% (+$931K) and receivables +48.2% (+$704K) against a revenue run-rate up 15.6%. Inventory turns fell from 5.6× to 3.6×; the cash cycle extended 60 → 106 days. Growth-adjusted excess: $1.24M. The company remains highly profitable, which is masking the drag — at lower margins this pattern would already be a liquidity problem.
Current ratio improved 4.43 → 4.71, but composition moved the wrong way: cash fell from 46.2% to 37.0% of assets while inventory rose from 24.3% to 30.3%. Quick ratio (−0.16) and cash ratio (−0.30) both declined. Levels remain strong; the direction warrants monitoring, not intervention.
Sales tax payable grew $120K → $228K. Four states appear for the first time (Colorado, Florida, Michigan, Ohio); California grew +133.5% to $78K. Consistent with multi-state retail expansion, but each new state adds nexus, registration, and filing-cadence obligations.
Net margin expanded 10.7% → 14.0% on gross margin +1.0 pt and an opex ratio down 2.3 pts. Annualized ROE is 31.9% with debt-to-equity of 0.27 and interest coverage of 72.7×. Equity grew $1.71M — $1.17M from earnings, $0.54M from capital stock. Growth is fully self-funded.
1130 Other Receivables ($100.00) and 1460 Advances Paid ($15.00) carry contra balances; the 2000 Accounts Payable header account holds a $89.97 debit balance alongside the 2010 trade account; 1215 Inventory In Transit sits at a flat $100.00. Clearing these before year-end keeps the roll-forward clean.
All financial data was extracted from NetSuite's own report engine (not raw SQL), so figures match what any user sees in the UI. Each run returned periodVerified: true, confirming the requested period filters were applied verbatim.
| # | Report | Filters applied | Rendered period | Verified |
|---|---|---|---|---|
| R1 | Comparative Balance Sheet (id −198) | crit_1_mod=TP (resolved to period 182 = Aug 2026), crit_2=-1 consolidated | End of Aug 2026 vs. As of FY 2025 | ✓ |
| R2 | Income Statement (id −200) | crit_1_mod=TFYTP (periods 173→182), crit_2=-1 | Jan 2026 – Aug 2026 | ✓ |
| R3 | Income Statement (id −200) | crit_1_mod=LFY (periods 156→170), crit_2=-1 | FY 2025 | ✓ |