Improved Cash Flow QualityThe company converted profits into cash efficiently (OCF/net income 1.32) and recovered free cash flow. Durable cash generation supports working capital, funds capex or restructuring, and reduces reliance on external funding during a multi-quarter recovery.
Manageable LeverageA debt-to-equity ratio around 0.61 indicates moderate leverage that should keep interest burdens manageable. This structural flexibility gives management room to invest in turnaround initiatives or weather cyclical apparel demand without immediate refinancing pressure.
Reasonable Equity CushionAn equity ratio near 38% provides a tangible capital buffer to absorb losses and support ongoing operations. For an apparel manufacturer facing volatility, this structural equity base improves solvency and the ability to access debt or equity markets if a sustained recovery is needed.