An article in Simply Wall St looks at the debt of New World Department Store of China. In brief, it has liabilities totalling HK$4.19b more than its cash and near-term receivables, combined. However, New World Department Store China grew its EBIT by 19% last year, making its debt load easier to handle. Over the last three years, New World Department Store China recorded negative free cash flow, in total. Debt is usually more expensive, and almost always more risky in the hands of a company with negative free cash flow. The article concludes that it is not "comfortable" with the stock. However, although New World did not make a statutory profit in the last year, its positive EBIT suggests that profitability might not be far away. The company announced a change in CEO last August. The company currently operates a national network of 22 New World stores and 9 Ba Lin Chun Tian stores and malls in Shanghai.