Based on recent financial reports, FaceGym's net worth was -£27,430,595.00 as of 2024. This figure indicates that the company's liabilities significantly exceeded its assets. For context, in 2020, their net worth was -£5,991,896.00.
Understanding FaceGym's Financial Position
FaceGym, like any company, has its financial health assessed through various metrics. One crucial indicator is its net worth, also known as shareholder equity or owner's equity. It represents the value of assets minus liabilities. A negative net worth, as seen with FaceGym, suggests that the company owes more than it owns.
Key Financials Overview
Here's a breakdown of FaceGym's financial data from recent periods, highlighting key aspects of its financial standing:
| Financial Metric | 2020 | 2024 |
|---|---|---|
| Cash | £624,975.00 | £320,908.00 |
| Net Worth | -£5,991,896.00 | -£27,430,595.00 |
| Total Current Assets | £1,211,406.00 | £2,241,260.00 |
| Total Current Liabilities | £9,101,178.00 | £30,182,508.00 |
Source: Recent Financial Reports
What Does Negative Net Worth Mean?
A negative net worth indicates that a company's total liabilities surpass its total assets. This often suggests:
- Significant Debt: The company has accumulated a substantial amount of debt relative to its assets.
- Operating Losses: Persistent operating losses can erode equity over time, leading to a negative position.
- Need for Further Investment: To continue operations and potentially return to a positive equity position, the company may require new capital injections from investors or lenders.
For FaceGym, the shift from -£5.99 million in 2020 to -£27.43 million in 2024 shows a significant increase in its negative equity position. This change is largely driven by a substantial rise in total current liabilities, which grew from £9.1 million to over £30.1 million in the same period. While their total current assets also increased, the growth in liabilities was far greater, resulting in a more pronounced negative net worth.
Understanding a company's financial health involves looking beyond just net worth, examining cash flow, profitability, and operational efficiency, but net worth provides a snapshot of its overall solvency at a specific point in time.
