Liquidity remains under extreme pressure as evidenced by a negative free cash flow margin of -15.1% in 2025Q3 and an OCF/NI ratio of 0.03, indicating a failure to convert operations into meaningful cash.
Addentax Group Corp. (ATXG) cash flow statement — 12-year operating, investing & financing cash flows
| Metric | TTM | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 |
|---|
| Cash from Operations | -321.89K | -603.6K | 816K | -411.47K | -1.57M | 1.09M | -4.22M | -1.15M | 1.19M | 1.88M | -43.7K | -10.03K | -490 |
| Operating CF Margin % | - | -11.24% | 19.52% | -7.98% | -19.75% | 8.6% | -17.07% | -11.31% | 11.9% | 13.99% | -0.82% | -175.98% | -45.37% |
| Operating CF Growth % | 3173.12% | -173.97% | 298.31% | 73.78% | -243.84% | 125.83% | -266.95% | -196.45% | -36.54% | 4402.83% | -335.61% | -1947.14% | - |
| Net Income | -2.42M | -4.47M | -5.09M | -3.11M | 1.32M | 78K | -3.59M | -1.46M | -694.33K | -709.4K | -27.12K | -9.71K | 160 |
| Depreciation & Amortization | -373.23K | 557.86K | 1.67M | 951.65K | 344.9K | 157.6K | 101.01K | 114.39K | 115.67K | 111.74K | 34.91K | 1.07K | 270 |
| Stock-Based Compensation | 381.25K | 70K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -3.07M | 3.5M | 3.45M | 2.11M | -1.71M | 0 | 46.77K | 562.31K | 10.32K | 454.66K | -10.85K | -11.05K | 0 |
| Working Capital Changes | -41.68K | -259.39K | 791.55K | -361.34K | -1.52M | 855.27K | -780.62K | -371.93K | 1.76M | 2.02M | -5.72K | -1.39K | -920 |
| Change in Receivables | -834.67K | -450.46K | 1.9M | -506.82K | 306.08K | 2.7M | -365.12K | -2.7M | 1.62M | 1.36M | -801.31K | 0 | 0 |
| Change in Inventory | -13.5K | -14.1K | -112.23K | 222.02K | -18.93K | 3.84K | 67.32K | -29.48K | -78.82K | 206.21K | 21.4K | -977 | 0 |
| Change in Payables | 542.42K | 695.8K | -306.29K | 91.99K | -1.26M | -1.79M | -268.18K | 2.74M | -608.24K | -60.8K | 2.2K | 0 | 0 |
| Cash from Investing | -649.52K | -296.85K | -205.81K | 90.73K | -21.17M | -198.12K | -563.05K | -136K | -229.24K | -3.12M | 227.71K | 0 | -3.62K |
| Capital Expenditures | 77.1K | -180.89K | -197.59K | -135.43K | 0 | -198.12K | -405.85K | -136K | -229.24K | -97.08K | 0 | 0 | -3.62K |
| CapEx % of Revenue | 0.97% | 3.37% | 4.73% | 2.63% | 0% | 1.56% | 1.64% | 1.34% | 2.29% | 0.72% | - | - | 335.19% |
| Acquisitions | -155.56K | -115.96K | -8.22K | 226.16K | -1.17M | 0 | -159.64K | 0 | 0 | -3.03M | 227.71K | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -571.05K | 0 | 0 | 0 | -2.5M | 0 | 2.44K | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 1.25M | 1.15M | -1.1M | 521.7K | 21.85M | -1.37M | 6.1M | 1.56M | -948.53K | 1.32M | 43.7K | 13.09K | 11.1K |
| Debt Issued (Net) | 143.25K | 22.54K | -500.01K | -1.41M | 13.87M | -1.37M | -635.34K | 1.56M | -948.53K | 1.32M | -612.35K | 0 | 0 |
| Equity Issued (Net) | 0 | 0 | 646.8K | 0 | 22.72M | 0 | 6.74M | 0 | 0 | 0 | 554 | 13.09K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3K |
| Other Financing | 1.1M | 1.13M | -1.25M | 1.93M | -14.75M | 0 | 0 | 0 | 0 | 0 | -554 | 0 | 11.1K |
| Net Change in Cash | 271.93K | -2.49M | -491.23K | 253.47K | -827.93K | -454.43K | 1.31M | 254.42K | 12.46K | 87.9K | 227.71K | 3.06K | 6.99K |
| Free Cash Flow | -425.69K | -784.5K | 618.41K | -546.9K | -1.57M | 892.75K | -4.63M | -1.29M | 963.92K | 1.78M | -43.7K | -10.03K | -4.11K |
| FCF Margin % | -5.33% | -14.61% | 14.79% | -10.61% | -19.75% | 7.03% | -18.71% | -12.65% | 9.61% | 13.27% | -0.82% | -175.98% | -380.56% |
| FCF Growth % | -193.55% | -226.86% | 213.07% | 65.15% | -275.77% | 119.29% | -259.7% | -233.5% | -45.94% | 4180.67% | -335.61% | -144.06% | - |
| FCF per Share | -0.52 | -1.10 | 1.55 | -1.87 | -6.60 | 5.02 | -26.89 | -7.62 | 5.70 | 10.55 | -0.26 | -4.35 | -0.41 |
| FCF Conversion (FCF/Net Income) | 0.18x | 0.14x | -0.16x | 0.13x | -1.19x | 13.99x | 1.18x | 1.17x | -1.72x | -2.65x | 0.83x | 1.03x | -3.06x |
| Interest Paid | 39.16K | 41.02K | 52.62K | 25.56K | 0 | 116 | 4.59K | 15.14K | 9.59K | 0 | 0 | 0 | 0 |
| Taxes Paid | 3.34K | 4.11K | 4.65K | 11.61K | 21.44K | 23.49K | 25.87K | 16.07K | 8.55K | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying ATXG stock.
Addentax Group Corp. (ATXG) generated $-0.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Addentax Group Corp. (ATXG) reported negative free cash flow of $0.8M in 2025, indicating capital requirements exceeded cash from operations.
Addentax Group Corp. (ATXG) spent $0.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Imminent liquidity insolvency risk
Metrics are mathematically derived from official filings.
Persistent Disconnect Between Earnings Cash
As reported in recent financial filings, Addentax Group's operating cash flow frequently fails to track with net income, evidenced by a 2025Q3 OCF/NI ratio of 0.03, which suggests that the company's reported losses are not being mitigated by meaningful cash generation from core business operations.
The consistent inability to convert earnings into cash flow indicates that the company's operational model is fundamentally inefficient. Investors should monitor this divergence as it suggests that the reported net income figures may be masking deeper structural cash outflows that are not immediately apparent on the income statement.
Free Cash Flow Margin Erosion
Based on the company's reported figures, free cash flow margins have remained largely negative, hitting -15.1% in 2025Q3, which highlights a sustained inability to generate surplus cash after accounting for necessary capital expenditures in the competitive Shenzhen logistics and garment manufacturing market.
The trajectory of free cash flow suggests that the business is currently in a state of value destruction rather than growth. Without a significant pivot in operational efficiency, the company may continue to rely on external financing to cover its ongoing cash burn.
Working Capital Volatility Hinders Liquidity
According to recent SEC filings, working capital changes have been highly erratic, swinging from a $1.5M inflow in 2023Q4 to a $1.1M outflow in 2025Q2, indicating that the company struggles to manage its cash conversion cycle effectively amidst declining revenue and operational instability.
This volatility in working capital suggests that the company may be facing challenges in collecting receivables or managing inventory levels efficiently. Such fluctuations complicate cash flow forecasting and increase the risk of sudden liquidity crunches during periods of low revenue.
Capital Intensity Amidst Revenue Decline
As reported in financial statements, the company's CapEx/Revenue ratio reached 3.4% in 2025Q3, which appears disproportionately high given the 18.88% year-over-year revenue decline, suggesting that capital is being deployed into assets that are failing to drive commensurate top-line growth or operational efficiency.
The continued investment in capital assets despite negative operating margins warrants further investigation into the nature of these expenditures. It appears that the company is attempting to maintain its infrastructure, yet these investments are not yielding the necessary returns to stabilize the business.