Operational cash flow remains deeply negative, highlighted by a $872.4K outflow in 2024Q4 that underscores the company's ongoing struggle to achieve self-sustaining cash generation.
| Cash from Operations | -1.51M | 8.81M | -1.91M |
| Operating CF Margin % | -20.66% | 139.98% | -98.39% |
| Operating CF Growth % | -117.18% | 561.47% | - |
| Net Income | 640.49K | 279.56K | -1.89M |
| Depreciation & Amortization | 1.13M | 798.86K | 56.81K |
| Stock-Based Compensation | 0 | 0 | 0 |
| Deferred Taxes | -121.77K | -187.81K | -193.39K |
| Other Non-Cash Items | -7.21K | 93.06K | -29.98K |
| Working Capital Changes | -3.16M | 7.82M | 150.29K |
| Change in Receivables | 168.35K | -162.29K | 172.71K |
| Change in Inventory | 17.67K | -113.78K | -167.98K |
| Change in Payables | -265.4K | 0 | 0 |
| Cash from Investing | -2.5M | -4.62M | -24.22K |
| Capital Expenditures | -288.7K | -4.62M | -24.22K |
| CapEx % of Revenue | 3.94% | 73.48% | 1.25% |
| Acquisitions | 0 | 0 | 0 |
| Investments | - | - | - |
| Other Investing | -2.21M | 0 | 0 |
| Cash from Financing | 1.56M | -1.21M | 925.21K |
| Debt Issued (Net) | 3.03M | -867.36K | 925.21K |
| Equity Issued (Net) | 0 | 1000K | 0 |
| Dividends Paid | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 |
| Other Financing | -1.47M | -60M | 0 |
| Net Change in Cash | -2.44M | 2.83M | -881.19K |
| Free Cash Flow | -4.4M | -4.9M | -1.93M |
| FCF Margin % | -60.06% | -77.83% | -99.64% |
| FCF Growth % | 10.21% | -153.39% | - |
| FCF per Share | -0.08 | -0.65 | -1.34 |
| FCF Conversion (FCF/Net Income) | -2.36x | 69.79x | 1.01x |
| Interest Paid | 0 | 0 | 0 |
| Taxes Paid | 14.28K | 42.93K | 1.88K |
Insufficient liquidity for operations
According to the provided quarterly cash flow data, DSY exhibits a chronic inability to convert reported net income into operating cash, with the 2024Q4 period showing a negative operating cash flow of $872.4K despite a positive net income of $29.6K, highlighting significant accrual-based distortions.
The consistent divergence between net income and operating cash flow suggests that the company's accounting profits are not supported by actual cash generation. Investors should monitor whether this gap is driven by aggressive revenue recognition or non-cash adjustments that fail to reflect the underlying cash-burn reality of the business.
As reported in recent financial statements, DSY's free cash flow trajectory is consistently negative, with the company recording a $823.2K outflow in 2024Q4, which underscores the structural difficulty in achieving self-sustaining operations given the current high-cost marketing and administrative requirements of the business model.
The persistent negative free cash flow indicates that the company is currently reliant on external financing to fund its day-to-day operations. This trajectory appears unsustainable without a fundamental shift in either customer acquisition efficiency or a significant reduction in the company's fixed cost structure.
Based on the reported figures, DSY's working capital changes have been erratic, with a $23.7K inflow in 2024Q4 failing to offset the broader operational cash drain, suggesting that the company is struggling to optimize its cash conversion cycle amidst its current growth-oriented marketing strategy.
The volatility in working capital changes may indicate challenges in managing inventory levels or collecting receivables effectively in a competitive e-commerce environment. This instability in cash flow timing warrants further investigation into the company's credit terms with distributors and its inventory turnover efficiency.
Data from recent filings indicates that DSY's cash flow statement is heavily impacted by non-operating items and depreciation, which, as noted in the 2024Q4 report, masks the underlying operational cash burn that is not fully captured by the headline net income figures provided to investors.
The reliance on non-operating adjustments to bolster the bottom line suggests that the core business is not yet generating sufficient cash to cover its own operating expenses. Analysts should be cautious of interpreting these accounting adjustments as evidence of operational health, as they do not address the fundamental cash-burn issue.
Quick answers to the most common questions about buying DSY stock.
Big Tree Cloud Holdings Limited (DSY) generated $-1.5M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Big Tree Cloud Holdings Limited (DSY) reported negative free cash flow of $4.4M in 2024, indicating capital requirements exceeded cash from operations.
Big Tree Cloud Holdings Limited (DSY) spent $0.3M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.