Double Medical Technology's conservative balance sheet indicates easy debt elimination. However, last year's loss and shrinking revenue make it a risky investment. Likely, the company will need to raise capital again soon.

Despite a recent drop, Double Medical Technology's P/S ratio remains high due to strong future growth expectations. Investors believe the potential for revenue deterioration is remote, justifying the high P/S ratio. These conditions, if persistent, will continue to support the share price.

Double Medical Technology's decreasing revenue and inability to generate positive EBIT raises concerns, despite paper profit. Future earnings and existing risks will significantly impact the company's balance and investment process.