Operating cash flow ran at 1.63 times net income in Q2 2026 yet free cash flow margin compressed to 4.2% from 12.9% a year earlier, with working capital swings of $16.6M and $18.1M in recent quarters suggesting cash generation remains highly dependent on receivable and inventory timing.
China Automotive Systems, Inc. (CAAS) cash flow statement — 26-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 |
|---|
| Cash from Operations | 135.54M | 111.63M | 9.78M | 19.91M | 48.02M | 28.27M | 57.43M | 30.29M | 12.53M | 50.15M | 11.82M | 39.27M | 45.7M | 12.88M | 16.21M | 34.06M | 38.55M | 34.96M | 16.37M | 11.32M | 7.97M | 13.39M | 21.31M | 4.26M | -8.81M | 2.19K | -2.97K |
| Operating CF Margin % | - | 14.58% | 1.5% | 3.45% | 9.07% | 5.68% | 13.75% | 7.02% | 2.52% | 10.05% | 2.56% | 8.85% | 9.79% | 3.1% | 4.82% | 9.79% | 11.14% | 13.68% | 10.03% | 8.48% | 8.32% | 21.07% | 36.63% | 7.69% | - | 16.19% | - |
| Operating CF Growth % | 494.22% | 1041.9% | -50.89% | -58.55% | 69.87% | -50.77% | 89.56% | 141.85% | -75.02% | 324.13% | -69.89% | -14.06% | 254.9% | -20.56% | -52.41% | -11.64% | 10.29% | 113.49% | 44.59% | 42.1% | -40.5% | -37.16% | 400.81% | 148.29% | - | 173.52% | - |
| Net Income | 57.41M | 51.91M | 37.9M | 42.74M | 22.34M | 10.73M | -10.27M | 8.38M | 79K | -18.64M | 22.98M | 27.9M | 39.59M | 33.06M | 25.49M | 47.9M | 62.92M | 31.29M | 12.44M | 8.86M | 4.81M | 3.32M | 6.89M | 3.87M | -9.92M | 2.19K | -2.97K |
| Depreciation & Amortization | 13.84M | 14.26M | 20.22M | 18.71M | 25.17M | 27.11M | 22.06M | 17.85M | 16.82M | 15.36M | 13.93M | 15.27M | 15.52M | 14.59M | 13.91M | 13.5M | 9.5M | 8.68M | 9.92M | 7.35M | 6.48M | 4.91M | 2.01M | 1.37M | 0 | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 88K | 0 | 0 | 23K | 100K | 137K | 105K | 193K | 194K | 76K | 100.58K | 595.4K | 446.68K | 345.43K | 153.68K | 0 | 55.13K | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -1.44M | -1.44M | -6.04M | -1.32M | 1.24M | 4.02M | 2.21M | 16K | -2.5M | 4.14M | -1.63M | -655K | -1.68M | -1.47M | -1.56M | -914.89K | 620.88K | -1.17M | -974.38K | -1.32M | 0 | -55.13K | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -21.26M | -1.08M | 1.57M | 2.71M | 4.75M | -4.46M | 2.56M | -2.49M | 5.57M | 1.2M | 1.91M | 2.1M | -3.73M | -2.16M | -3.59M | -22.69M | -21.41M | 783.69K | 5.53M | 8.86M | 6.68M | 3.41M | 2.71M | 8.52M | 0 | 0 | 0 |
| Working Capital Changes | 49.74M | 47.99M | -43.88M | -42.94M | -5.49M | -9.22M | 40.87M | 6.54M | -7.46M | 48M | -25.5M | -5.45M | -4.2M | -31.34M | -18.12M | -3.84M | -13.67M | -5.08M | -10.89M | -12.58M | -9.99M | 1.77M | 9.71M | -9.5M | 1.1M | 0 | 0 |
| Change in Receivables | -4.17M | -10.13M | -77.55M | -51.26M | -36.94M | 18.4M | 7.29M | 24.12M | 33.23M | 23.23M | -44.07M | 4.62M | -6.38M | -43.31M | -19.15M | -6.41M | 0 | 0 | -14.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -14.75M | -9.16M | -1.79M | -1.65M | -5.37M | -25.68M | -109K | 3.99M | -17.85M | -12.16M | -15.44M | -7.63M | -10.16M | -8.72M | 229K | -12.46M | -8.68M | -817.83K | -4.96M | -3.45M | -2.53M | -100.14K | -2.88M | -1.03M | 0 | 0 | 0 |
| Change in Payables | 50.07M | 50.07M | 40.39M | 22.02M | 27.27M | -2.8M | 27.25M | -22.14M | -22.49M | 2.53M | 35.45M | -2.58M | 11.94M | 26.6M | 7.75M | 15.01M | 36.82M | 8.32M | 8.32M | 7.12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -76.24M | -31.49M | -77.93M | -28.64M | -32.74M | 2.96M | -23.76M | -27.32M | 2.45M | -47.31M | -52.23M | -32.27M | -21.79M | -43.06M | -6.29M | -14.04M | -32.6M | -17.34M | -22.36M | -13.16M | -1.22M | -12.01M | -18.23M | -9.2M | 0 | 0 | 0 |
| Capital Expenditures | -52.4M | -37.19M | -44.46M | -18.23M | -20.48M | -9.9M | -15.82M | -35.9M | -25.95M | -27.3M | -39.75M | -42.68M | -19.41M | -14.87M | -19.08M | -15.18M | -28.19M | -17.82M | -12.37M | -14.27M | -7.55M | -11.09M | -17.81M | -8.84M | 0 | 0 | 0 |
| CapEx % of Revenue | 6.28% | 4.86% | 6.83% | 3.16% | 3.87% | 1.99% | 3.79% | 8.32% | 5.23% | 5.47% | 8.6% | 9.62% | 4.16% | 3.58% | 5.68% | 4.36% | 8.15% | 6.97% | 7.58% | 10.68% | 7.89% | 17.44% | 30.61% | 15.98% | - | - | - |
| Acquisitions | 0 | -1.12M | 36.01M | -7.73M | -12.8M | -13.76M | -5.36M | -8.58M | -5.96M | -7.63M | -8.6M | -249K | -2.98M | 6.19M | 7.47M | 0 | 0 | 0 | -10M | 0 | 0 | 0 | 0 | -328.23K | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -30.19M | -2.98M | -15.5M | -655K | 1.66M | 133K | 768K | 4.96M | 23.11M | -16.02M | 3.67M | -442K | 7M | 788K | 5.32M | 574.77K | -1.31M | 487.28K | 14.87K | 1.11M | 6.33M | -925.37K | 207.51K | -1.22M | 0 | 0 | 0 |
| Cash from Financing | 11.45M | 11.45M | 17.36M | 6.8M | -1.58M | -3.12M | -19.83M | -10.74M | 10.12M | 28.46M | 4.42M | -1.77M | -9.12M | -5.81M | 4.63M | 871.94K | -1.39M | -11.29M | 21.98M | -7.43M | 7.47M | -169.76K | -2.7M | 10.05M | 0 | 0 | 6.3K |
| Debt Issued (Net) | 13.84M | 13.84M | 24.36M | 3.34M | 851K | -2.04M | -17.4M | -12.64M | -4.76M | 29.08M | 7.34M | -402K | 4.42M | -4.34M | 8.42M | 3.18M | 1.42M | -7.53M | 27.43M | -2.18M | 0 | 1.2M | 3.98M | 5.77M | 0 | 0 | 0 |
| Equity Issued (Net) | 0 | 0 | -68K | 0 | -2.43M | 0 | -2.99M | -1.31M | -300K | 0 | -1.91M | 0 | 0 | 0 | -1M | 517.93K | 0 | 0 | 0 | 1.15M | 10.37M | 0 | 0 | 159K | 0 | 0 | 6 |
| Dividends Paid | -2.19M | -2.19M | -22.43M | 0 | 0 | 0 | -88K | 0 | 0 | 0 | -544K | -252K | -4.29M | -66K | 0 | 0 | -3.61M | -4.18M | -6.2M | -6.31M | 0 | -1.2M | -4.47M | -2.65M | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -68K | 0 | -2.43M | 0 | -2.99M | -1.31M | -300K | 0 | -1.91M | 0 | 0 | 0 | -1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -198K | -199K | 15.5M | 3.46M | 0 | -1.07M | 641K | 3.21M | 15.18M | -623K | -464K | -1.12M | -9.25M | -1.4M | -2.79M | -2.82M | 799.39K | 420.24K | 748.14K | -6.39M | -2.9M | -1.37M | -2.21M | 6.77M | 52K | 0 | 6.29K |
| Net Change in Cash | 147.77M | 92.46M | -53.37M | -3.76M | -548K | 31.44M | 21.66M | -9.57M | 19.88M | 33.47M | -38.58M | 1.17M | 14.53M | -33.67M | 14.69M | 23.54M | 5.94M | 6.37M | 17.63M | -7.93M | 15.04M | 1.21M | 381.74K | 5.11M | -8.8M | 2.19K | 3.33K |
| Free Cash Flow | 83.13M | 71.3M | -34.68M | -1.77M | 27.54M | 18.37M | 40.86M | -5.61M | -13.43M | 22.86M | -27.92M | -3.41M | 26.28M | -2M | -2.87M | 18.88M | 10.36M | 17.13M | 4M | -2.95M | 415.31K | 2.31M | 3.5M | -4.59M | -8.81M | 2.19K | -2.97K |
| FCF Margin % | 9.96% | 9.31% | -5.33% | -0.31% | 5.2% | 3.69% | 9.78% | -1.3% | -2.71% | 4.58% | -6.04% | -0.77% | 5.63% | -0.48% | -0.85% | 5.43% | 3% | 6.7% | 2.45% | -2.21% | 0.43% | 3.63% | 6.02% | -8.29% | - | 16.19% | - |
| FCF Growth % | 3435.5% | 305.56% | -1855.13% | -106.44% | 49.92% | -55.04% | 828.73% | 58.24% | -158.75% | 181.86% | -719.28% | -112.97% | 1417.44% | 30.49% | -115.2% | 82.22% | -39.52% | 328.01% | 235.89% | -809.29% | -81.99% | -34.17% | 176.34% | 47.95% | - | 173.52% | - |
| FCF per Share | 2.76 | 2.36 | -1.15 | -0.06 | 0.90 | 0.60 | 1.31 | -0.18 | -0.42 | 0.72 | -0.87 | -0.11 | 0.90 | -0.07 | -0.10 | 0.60 | 0.33 | 0.63 | 0.13 | -0.12 | 0.02 | 0.10 | 0.16 | -0.21 | -0.42 | 0.00 | -0.00 |
| FCF Conversion (FCF/Net Income) | 1.45x | 2.61x | 0.33x | 0.53x | 2.27x | 2.56x | -11.53x | 3.04x | 5.27x | -2.59x | 0.53x | 1.43x | 1.36x | 0.48x | 0.78x | 0.84x | 0.75x | 1.49x | 1.32x | 1.28x | 1.66x | 4.04x | 3.10x | 1.10x | 0.89x | 1.00x | 1.00x |
| Interest Paid | 0 | 1.7M | 1.79M | 1.15M | 1.49M | 1.84M | 2.75M | 3.39M | 3.85M | 654K | 720K | 1.56M | 1.21M | 1.29M | 10.87M | 1.97M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 20.45M | 18.51M | 7.96M | 4.04M | 3.4M | 3.23M | 4.61M | 3.72M | 4.64M | 1.84M | 8.07M | 5.88M | 6.04M | 5.77M | 8.27M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying CAAS stock.
China Automotive Systems, Inc. (CAAS) generated $111.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
China Automotive Systems, Inc. (CAAS) generated $71.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
China Automotive Systems, Inc. (CAAS) spent $37.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, China Automotive Systems, Inc. (CAAS) returned $2.2M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Volatile operating cash conversion
Metrics are mathematically derived from official filings.
Cash Conversion Diverges From Reported Earnings
According to reported quarterly figures, CAAS operating cash flow ran at 1.63 times net income in Q2 2026 and 4.06 times in Q2 2025, but turned negative in Q4 2024 when operating cash flow was -$6.8M against net income of $9.1M.
The swing between strong and negative conversion suggests earnings quality is driven heavily by working capital timing rather than a stable cash-generating base. Ratios above 2.5 times in two quarters may reflect collections of prior receivables rather than repeatable earnings power. Investors should monitor whether conversion normalizes near 1.0 times over the next several periods.
Free Cash Flow Thin and Inconsistent
Based on reported figures, CAAS free cash flow margin reached 12.9% in Q2 2025 but compressed to 4.2% in Q2 2026, with two quarters of negative free cash flow in 2024 suggesting limited cushion for capital needs.
The 4.2% free cash flow margin in the latest reported period is modest relative to the Q2 2025 peak and sits well below Dorman's 12.4%, indicating weaker cash economics per dollar of revenue. Free cash flow has been positive in only four of the last eight reported quarters with complete data, which appears to reflect cyclical working capital and capital spending rather than structural strength. The trend warrants further investigation before assuming a durable recovery.
Capital Spending Elevated Against Revenue
As reported in cash flow statements, CAAS capital expenditure reached 13.5% of revenue in Q4 2024 and 7.4% in Q2 2026, levels that exceed depreciation of $3.9M in the most recent quarter.
Capex running above depreciation implies the company is investing in capacity or upgrades rather than only replacing worn assets, which may support future growth but absorbs cash in the near term. The 7.4% capex intensity in the latest quarter is high for a parts manufacturer and compresses the gap between operating cash flow and free cash flow. Whether this spending is growth-oriented or maintenance-driven cannot be determined from the supplied data alone.
Shareholder Returns Largely Paused
Based on the supplied figures, CAAS recorded dividend payments of $13.1M and share repurchases of $68.1K in Q4 2024 but no distributions in subsequent reported quarters, while acquisitions produced a net cash inflow of $19.1M in the same period.
The Q4 2024 payouts coincided with a large acquisition-related inflow, which makes the net picture difficult to interpret without the underlying transaction details. The absence of dividends and buybacks since then suggests capital is being retained, though the reason is not disclosed in the supplied data. Investors should treat the return profile as uncertain until management's allocation intent is clearer.
Working Capital Release Drives Recent Cash
According to reported figures, CAAS working capital change contributed a $16.6M swing in Q2 2025 and an $18.1M outflow in Q4 2024, indicating that receivable and inventory timing dominates quarterly cash generation.
The magnitude of working capital movements relative to net income implies that reported earnings are not translating into cash on a predictable schedule. A $16.6M release in a single quarter may reflect collections of accumulated receivables rather than a structural improvement in efficiency. Without balance sheet detail for receivables and inventory, the source of these swings cannot be confirmed.
Cash Data Gaps Limit Conclusions
Based on the supplied data, several quarters show zero or missing cash flow entries, so the apparent cash pattern may reflect incomplete reporting rather than the underlying economics of the business.
Q4 2025 and Q3 2025 report net income without any operating cash flow, capex, or free cash flow figures, which treats those periods as data unavailable rather than as evidence of zero cash generation. Positive trends drawn from the remaining quarters should therefore be viewed with caution, since the sample is small and unevenly populated. Investors should verify the missing periods against the original filings before relying on the conversion and free cash flow conclusions above.