Applied Therapeutics Inc Stock

When beginning to evaluate the financial health of Applied Therapeutics (APLT), an immediate observation from its balance sheets over the past years is that the company appears to be in a challenging financial position. The detailed numbers highlight substantial losses, and a consistent lack of revenue generation which is fairly typical within the biotechnology and medical research industry, where companies often spend years in the development phase before bringing a product to market. The significant research and development costs, coupled with administrative expenses, have led to considerable operating losses. Additionally, net income has remained in the negative spectrum, reflecting the company's struggle to turn profits during this period.

Pros: ** - **Cash Position: Applied Therapeutics held a cash and cash equivalent position of $16.66 million at the end of 2022, which is critical for the company's operational survival. Although it is lower than in previous years, it provides some liquidity. - Equity Position: The company's total stockholder equity, albeit lower in 2022 than in previous years, is still positive, which indicates that the company is not completely eroded by liabilities.

Cons: ** - **Increasing Liabilities: Total liabilities have increased yearly, placing more pressure on the company's balance sheet. - Dwindling Asset Base: There has been a significant reduction in total assets from $104.51 million in 2020 to $38.36 million in 2022, which can be a red flag for potential investors and may limit operational capabilities. - Negative Net Working Capital: The net working capital has been decreasing, suggesting potential short-term liquidity issues. - Retained Earnings: Retained earnings show a large negative figure, indicating accumulated losses over time.