Is HyVision System (KOSDAQ:126700) Using Debt Sensibly?

January 29, 2026

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. We can see that HyVision System. Inc (KOSDAQ:126700) 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 Dangerous?

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. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. 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, debt can be an important tool in businesses, particularly capital heavy businesses. The first step when considering a company's debt levels is to consider its cash and debt together.

What Is HyVision System's Debt?

You can click the graphic below for the historical numbers, but it shows that as of September 2025 HyVision System had ₩3.62b of debt, an increase on ₩2.65b, over one year. But it also has ₩113.9b in cash to offset that, meaning it has ₩110.3b net cash.

debt-equity-history-analysis — KOSDAQ:A126700 Debt to Equity History January 29th 2026

How Strong Is HyVision System's Balance Sheet?

The latest balance sheet data shows that HyVision System had liabilities of ₩47.2b due within a year, and liabilities of ₩3.36b falling due after that. Offsetting these obligations, it had cash of ₩113.9b as well as receivables valued at ₩41.4b due within 12 months. So it can boast ₩104.8b more liquid assets than total liabilities.

This surplus liquidity suggests that HyVision System's balance sheet could take a hit just as well as Homer Simpson's head can take a punch. Having regard to this fact, we think its balance sheet is as strong as an ox. Succinctly put, HyVision System boasts net cash, so it's fair to say it does not have a heavy debt load! 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 HyVision System 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 HyVision System

Over 12 months, HyVision System made a loss at the EBIT level, and saw its revenue drop to ₩193b, which is a fall of 47%. To be frank that doesn't bode well.

So How Risky Is HyVision System?

While HyVision System lost money on an earnings before interest and tax (EBIT) level, it actually generated positive free cash flow ₩25b. So although it is loss-making, it doesn't seem to have too much near-term balance sheet risk, keeping in mind the net cash. We'll feel more comfortable with the stock once EBIT is positive, given the lacklustre revenue growth. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately, every company can contain risks that exist outside of the balance sheet. For example - HyVision System has 1 warning sign we think you should be aware of.

At the end of the day, it's often better to focus on companies that are free from net debt. You can access our special list of such companies (all with a track record of profit growth). It's free.

Valuation is complex, but we're here to simplify it.

Discover if HyVision System might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.