Revenue has contracted from $81.0 million in 2021Q4 to $49.4 million in 2024Q4, while gross margins have eroded to a negative 0.9% over the same period.
| Sales/Revenue | 132.37M | 190.72M | 206.72M | 194.24M | 131.63M |
| Revenue Growth % | -30.6% | -7.74% | 6.42% | 47.57% | - |
| Cost of Goods Sold | 130.04M | 136.76M | 193.84M | 181.99M | 125.77M |
| COGS % of Revenue | 98.24% | 71.71% | 93.77% | 93.7% | 95.55% |
| Gross Profit | 2.33M | 5.23M | 12.88M | 12.24M | 5.86M |
| Gross Margin % | 1.76% | 2.74% | 6.23% | 6.3% | 4.45% |
| Gross Profit Growth % | -55.57% | -59.36% | 5.16% | 109.07% | - |
| Operating Expenses | 6.03M | 4.38M | 7.59M | 7.27M | 5.93M |
| OpEx % of Revenue | 4.55% | 2.3% | 3.67% | 3.74% | 4.51% |
| Selling, General & Admin | 6.03M | 5.88M | 7.59M | 7.27M | 5.93M |
| SG&A % of Revenue | 4.55% | 3.08% | 3.67% | 3.74% | 4.51% |
| Research & Development | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - |
| Other Operating Expenses | 0 | -1.5M | 0 | 0 | 0 |
| Operating Income | -3.7M | 853.96K | 5.28M | 4.98M | -75K |
| Operating Margin % | -2.8% | 0.45% | 2.56% | 2.56% | -0.06% |
| Operating Income Growth % | -533.28% | -83.84% | 6.13% | 6737.33% | - |
| EBITDA | -3.6M | 915.96K | 5.33M | 5.02M | -25K |
| EBITDA Margin % | -2.72% | 0.48% | 2.58% | 2.58% | -0.02% |
| EBITDA Growth % | -493.47% | -82.8% | 6.12% | 20172.73% | - |
| D&A (Non-Cash Add-back) | 96K | 62K | 42.06K | 40.18K | 50K |
| EBIT | -3.22M | 1.34M | 5.57M | 5.65M | 544K |
| Net Interest Income | -133K | -110K | -33K | -48K | -56K |
| Interest Income | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 133K | 110K | 33K | 48K | 56K |
| Other Income/Expense | 349K | 381.04K | 252K | 623K | 563K |
| Pretax Income | -3.35M | 1.24M | 5.54M | 5.6M | 488K |
| Pretax Margin % | -2.53% | 0.65% | 2.68% | 2.88% | 0.37% |
| Income Tax | 178K | 149K | 920K | 901K | 32K |
| Effective Tax Rate % | -5.31% | 12.06% | 16.62% | 16.09% | 6.56% |
| Net Income | -3.53M | 1.09M | 4.62M | 4.7M | 456K |
| Net Margin % | -2.67% | 0.57% | 2.23% | 2.42% | 0.35% |
| Net Income Growth % | -424.95% | -76.47% | -1.81% | 930.7% | - |
| Net Income (Continuing) | -3.53M | 1.09M | 4.62M | 4.7M | 456K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.14 | 0.04 | 0.14 | 0.14 | 0.01 |
| EPS Growth % | -416.03% | -68.36% | 0% | 929.41% | - |
| EPS (Basic) | -0.14 | 0.04 | 0.14 | 0.14 | 0.01 |
| Diluted Shares Outstanding | 24.5M | 24.5M | 24.34M | 24.34M | 24.34M |
| Basic Shares Outstanding | 24.5M | 24.5M | 24.34M | 24.34M | 24.34M |
| Dividend Payout Ratio | - | - | 47.16% | - | - |
Liquidity and solvency constraints
As evidenced by the most recent quarterly data, DTCK's revenue has experienced a sharp 28.3% year-over-year decline, continuing a broader trend of contraction that has seen top-line figures fall from $81.0 million in 2021Q4 to just $49.4 million in the most recent reporting period.
The consistent downward trajectory in revenue suggests that the company is losing its competitive footing in the highly fragmented agricultural trading markets of Asia and Africa. This decline appears to be more than a cyclical fluctuation, potentially indicating a structural loss of market share or a strategic retreat from high-volume, low-margin trade corridors.
Based on the provided financial statements, DTCK's gross margin has deteriorated significantly, reaching a negative 0.9% in 2024Q4, a stark contrast to the 7.3% margin reported in 2021Q4, which highlights the company's inability to maintain pricing power in a volatile commodity environment.
The shift into negative gross margin territory implies that the cost of procuring physical commodities now exceeds the revenue generated from sales, effectively rendering the core trading business model unsustainable. Investors should monitor whether this is a temporary inventory valuation issue or a permanent impairment of the company's ability to capture a positive spread.
According to the income statement, DTCK's operating margin has plummeted to -7.4% in 2024Q4, demonstrating that the company's fixed operating expenses are no longer being adequately covered by the shrinking gross profit, thereby creating a dangerous cycle of operational deleveraging.
The inability to scale SG&A costs down in proportion to the 30.6% revenue decline suggests a lack of operational flexibility. This fixed-cost burden, combined with a minimal cash position, leaves the company with virtually no buffer to absorb further operational shocks or market volatility.
While the company maintains long-standing brand identities, the current financial data suggests that the business model is fundamentally strained, as the combination of negative operating margins and a $678,000 cash balance raises significant questions regarding the firm's long-term viability as a going concern.
Short-sellers would likely focus on the disconnect between the company's historical brand presence and its current inability to generate positive cash flow from operations. The reliance on transactional trading without the benefit of upstream assets makes the company exceptionally vulnerable to credit tightening and supply chain disruptions.
Quick answers to the most common questions about buying DTCK stock.
For fiscal year 2024, Davis Commodities Limited Ordinary Shares (DTCK) reported total revenue of $132.4M. This represents a 0.6% increase compared to $131.6M in 2020.
Davis Commodities Limited Ordinary Shares (DTCK) reported a net loss of $3.5M for the fiscal year ending 2024.
Davis Commodities Limited Ordinary Shares (DTCK) reported an operating income of $-3.7M, resulting in an operating profit margin of -2.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Davis Commodities Limited Ordinary Shares (DTCK) generated $2.3M in gross profit for the year, representing a gross profit margin of 1.8%. This demonstrates the company's core pricing power and production efficiency.