QuickLogic Corporation (NASDAQ:QUIK) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. QuickLogic Corporation operates as a fabless semiconductor company in the United States. The US$206m market-cap company announced a latest loss of US$263k on 31 December 2023 for its most recent financial year result. As path to profitability is the topic on QuickLogic's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

QuickLogic is bordering on breakeven, according to the 2 American Semiconductor analysts. They expect the company to post a final loss in 2023, before turning a profit of US$1.8m in 2024. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 110% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for QuickLogic given that this is a high-level summary, but, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with QuickLogic is its debt-to-equity ratio of 127%. Typically, debt shouldn't exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of QuickLogic which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at QuickLogic, take a look at QuickLogic's company page on Simply Wall St. We've also put together a list of essential aspects you should further research:

1. Valuation: What is QuickLogic worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether QuickLogic is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on QuickLogic's board and the CEO's background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.