Operational sustainability remains elusive, with a $9.2 million free cash flow deficit in 2024Q4 and an OCF/NI ratio of 0.36, indicating poor cash conversion.
| Cash from Operations | -25.46M | -40.02M | 22.38M | -22.37M | -142.98M |
| Operating CF Margin % | -368.24% | -421.99% | 149.61% | -100.32% | -539.26% |
| Operating CF Growth % | 36.37% | -278.78% | 200.04% | 84.35% | - |
| Net Income | -69M | -68.11M | -77.26M | -29.91M | -29.11M |
| Depreciation & Amortization | 23.13M | 34.62M | 44.65M | 54.31M | 58.21M |
| Stock-Based Compensation | 92K | 3.17M | 22.9M | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 17.89M | -40.25M | -63M | -126.72M | -126.76M |
| Working Capital Changes | 2.42M | 30.55M | 95.08M | 79.94M | -45.33M |
| Change in Receivables | 12.17M | -1.35M | -734K | 4.22M | 11.23M |
| Change in Inventory | -378K | 3.97M | 490K | -25.08M | -8.53M |
| Change in Payables | -1.28M | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.06M | -1.76M | -13.24M | -1.07M | 34.37M |
| Capital Expenditures | -1.09M | -5.34M | -11.84M | -951K | -57K |
| CapEx % of Revenue | 15.73% | 56.31% | 79.13% | 4.26% | 0.21% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | 30K | 3.58M | -1.41M | -120K | 34.43M |
| Cash from Financing | 13.64M | 5.22M | 1.38M | -44.61M | -31.15M |
| Debt Issued (Net) | 10.82M | 0 | 0 | -44.61M | 0 |
| Equity Issued (Net) | 1000K | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 5.22M | 1.38M | 0 | -31.15M |
| Net Change in Cash | -8.34M | -37.91M | 6.88M | -66.05M | -131.76M |
| Free Cash Flow | -26.55M | -45.36M | 10.54M | -23.32M | -143.04M |
| FCF Margin % | -383.98% | -478.3% | 70.48% | -104.58% | -539.47% |
| FCF Growth % | 41.46% | -530.13% | 145.21% | 83.69% | - |
| FCF per Share | -490.55 | -858.84 | 207.95 | -459.97 | -1612.62 |
| FCF Conversion (FCF/Net Income) | 0.54x | 0.59x | -0.29x | 0.75x | 4.91x |
| Interest Paid | 113K | 236K | 0 | 258K | 3.01M |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and solvency crisis
According to recent financial disclosures, Chijet's operating cash flow consistently trails net losses, with an OCF/NI ratio of 0.36 in 2024Q4, suggesting that reported earnings are heavily influenced by non-cash charges rather than actual cash generation from the company's core automotive manufacturing activities.
The persistent gap between net income and operating cash flow indicates that the company's accounting losses are being partially mitigated by significant non-cash items, likely depreciation from its manufacturing assets. Investors should monitor this divergence, as it suggests that the business model is not currently capable of converting its operational scale into tangible liquidity.
As reported in quarterly filings, Chijet's free cash flow remains deeply negative, with a 2024Q4 outflow of $9.2 million, highlighting a structural inability to fund operations through vehicle sales and pointing toward a reliance on external financing to sustain its ongoing manufacturing and research efforts.
The consistent negative free cash flow trajectory, coupled with an FCF margin of -2.6% in the most recent quarter, underscores the company's struggle to achieve break-even unit economics. This trend suggests that without a radical shift in production efficiency or sales volume, the company will continue to deplete its limited cash reserves.
Based on the provided cash flow statements, Chijet has experienced erratic working capital swings, including an $11.8 million inflow in 2024Q4, which appears to be a temporary relief rather than a sustainable improvement in the company's ability to manage its inventory and accounts payable cycles.
These large, fluctuating working capital adjustments often indicate aggressive management of payables or inventory liquidations rather than organic operational efficiency. Analysts should be wary of these movements, as they may be masking the underlying cash burn required to maintain the company's manufacturing partnership with FAW Jilin.
As indicated by the company's financial statements, significant depreciation and amortization charges, reaching $11.0 million in 2024Q4, frequently exceed the reported net loss, which may lead to an overestimation of the company's operational health by investors focusing solely on non-GAAP earnings metrics.
The reliance on high depreciation to offset operating losses suggests that the company's asset base is aging or being written down, yet it fails to generate the cash flow necessary to replace or upgrade these facilities. This dynamic warrants further investigation into whether the company's manufacturing assets retain any real economic value.
Quick answers to the most common questions about buying CJET stock.
Chijet Motor Company, Inc. (CJET) generated $-25.5M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Chijet Motor Company, Inc. (CJET) reported negative free cash flow of $26.6M in 2024, indicating capital requirements exceeded cash from operations.
Chijet Motor Company, Inc. (CJET) spent $1.1M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.