The absence of positive free cash flow, coupled with a limited $748,099 cash balance, suggests that the current growth trajectory is not self-sustaining.
| Metric | Jun'24 | Jun'23 | Jun'22 |
|---|
| Cash from Operations | -1.51M | 8.81M | -1.91M |
| Operating CF Margin % | -20.66% | 139.97% | -98.38% |
| 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 | 13.77K |
| Working Capital Changes | -3.16M | 7.82M | 106.54K |
| Change in Receivables | 168.35K | -162.29K | 172.71K |
| Change in Inventory | 17.67K | -113.78K | -167.98K |
| Change in Payables | -265.4K | 673.39K | -84.8K |
| 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 | -459.12K | 925.21K |
| Equity Issued (Net) | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 |
| Other Financing | -1.47M | -752.96K | 0 |
| Net Change in Cash | -2.44M | 2.83M | -881.19K |
| Free Cash Flow | -4.4M | 4.18M | -1.93M |
| FCF Margin % | -60.06% | 66.49% | -99.62% |
| FCF Growth % | -205.11% | 316.47% | - |
| FCF per Share | -0.08 | - | - |
| FCF Conversion (FCF/Net Income) | -2.36x | 31.51x | 1.01x |
| Interest Paid | 49.37K | 0 | 0 |
| Taxes Paid | 14.28K | 42.93K | 1.88K |
Liquidity and operational insolvency
As reported in financial statements, the company's 8.75% net margin appears disconnected from its underlying cash generation, suggesting that reported profitability is heavily reliant on non-operating items rather than core operational cash inflows, which remain unavailable for independent verification in the current data set.
The significant divergence between the positive net margin and the negative operating margin indicates that the company's accounting earnings are not currently being converted into cash. Investors should monitor whether this gap is bridged by future operational improvements or if it remains a structural feature of non-recurring accounting gains.
Based on the company's reported figures, the absence of positive free cash flow, combined with a minimal cash balance of $748,099, suggests that the firm's current 16.37% revenue growth trajectory is being funded by external capital rather than self-sustaining internal cash generation.
The lack of positive free cash flow implies that the company is currently in a cash-burning phase of its lifecycle. This trajectory warrants further investigation into how long the firm can sustain its current operating model without resorting to dilutive financing or additional debt.
According to recent SEC filings, the lack of detailed cash flow data prevents a clear view of how much cash is consumed by working capital versus capital expenditures, leaving the true nature of the company's cash burn rate largely obscured from public scrutiny.
Without a transparent cash flow statement, it is difficult to determine if the company is effectively managing its inventory and receivables. The reliance on non-operating income to bolster net margins suggests that the core business may be consuming more cash than the headline profitability figures imply.
As indicated by the company's financial disclosures, the extremely low cash position of $748,099 relative to its TTM revenue of $7.3 million suggests that management has virtually no flexibility for capital deployment, such as share repurchases or strategic acquisitions, in the near term.
The current liquidity profile appears to prioritize survival over capital return, which is typical for early-stage entities. Any future capital deployment will likely be contingent upon successful external fundraising rather than organic cash flow generation.
Quick answers to the most common questions about buying DSYWW stock.
Big Tree Cloud Holdings Limited Warrants (DSYWW) 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 Warrants (DSYWW) reported negative free cash flow of $4.4M in 2024, indicating capital requirements exceeded cash from operations.
Big Tree Cloud Holdings Limited Warrants (DSYWW) 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.