Risks

Interest coverage of 1.4x leaves less cushion than many industrial peers, so any demand softness or input-cost inflation could pressure earnings and refinancing flexibility.

Net debt to EBITDA of 1.5x is manageable but above net-cash peers, so higher rates or weaker cash flow could constrain balance-sheet optionality versus stronger competitors.

Cash conversion cycle of 178 days is long, driven by 180 days of inventory, so working-capital drag can limit free-cash-flow conversion relative to faster-turn peers.

Quick ratio of 0.72x is below 1.0x, so near-term liquidity depends more on inventory realization and receivables collection than on immediate liquid assets versus peers.

Opportunities

Current ratio of 2.25x provides better short-term liquidity than many peers, so the company can absorb cyclical volatility and preserve operating continuity more effectively.

Moderate leverage at 1.5x net debt to EBITDA gives more flexibility than highly levered peers, supporting resilience if end-market demand weakens or capital needs rise.

A 55.0-day payables period helps partially fund the long inventory cycle, so supplier financing can soften working-capital pressure versus peers with tighter terms.

The balance between liquidity and leverage supports steadier execution in a cyclical environment, so LOMA is better positioned than weaker-balance-sheet peers to defend demand.

Overall Score

LOMA’s positioning is supported by solid liquidity and moderate leverage, but long working-capital cycles and thin interest coverage keep peer-relative risk meaningful.