How Financially Strong Is SemiLEDs Corporation?

SemiLEDs Corporation (NASDAQ:LEDS) is a small-cap stock with a market capitalization of US$11.66M. While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. Why is it important? Companies operating in the Semiconductor industry, especially ones that are currently loss-making, are more likely to be higher risk. So, understanding the company’s financial health becomes essential. Here are few basic financial health checks you should consider before taking the plunge.