Liquidity is under pressure as the company reported a negative free cash flow margin of -48.1% in 2024Q4 while continuing to issue $838.4K in dividend payments.
| Cash from Operations | -996.36K | 7.23M | -1.5M | 1.96M | 5.66M | 457.79K |
| Operating CF Margin % | - | 18.49% | -5.29% | 5.11% | 14.79% | 15.09% |
| Operating CF Growth % | -701.98% | 581.7% | -176.6% | -65.43% | 1137.44% | - |
| Net Income | 3.1M | 2.51M | 783.66K | 6.66M | 4.48M | 290.47K |
| Depreciation & Amortization | 171.59K | 221.39K | 147.77K | 169.28K | 202.82K | 27.06K |
| Stock-Based Compensation | 0 | 654.6K | 0 | 0 | 0 | 0 |
| Deferred Taxes | -15.38K | -55 | -12.43K | -14.09K | -31.92K | -248 |
| Other Non-Cash Items | -1.89M | 557.05K | -2.04M | -4.35M | 844.45K | -4.79K |
| Working Capital Changes | -558.8K | 3.28M | -374.65K | -502.23K | 133.93K | 145.3K |
| Change in Receivables | 57.63K | -359.51K | -34.66K | 133.99K | 15.94K | -43.24K |
| Change in Inventory | -169.21K | 1.2M | 155.97K | -418.13K | -76.26K | 229.17K |
| Change in Payables | -325.83K | 1.76M | -348.93K | -198.34K | 244.54K | 28.81K |
| Cash from Investing | 126.16K | -1.02M | 17 | 2.06M | -83.45K | 13.45K |
| Capital Expenditures | -107.9K | -1.02M | -198.7K | -6.37K | -10.72K | -6.53K |
| CapEx % of Revenue | 0.49% | 2.61% | 0.7% | 0.02% | 0.03% | 0.22% |
| Acquisitions | 122.67K | 0 | 0 | 245.33K | 0 | 8.27K |
| Investments | - | - | - | - | - | - |
| Other Investing | 956.43K | 0 | 0 | 1.63M | -72.73K | 11.71K |
| Cash from Financing | 201.24K | -669.87K | 701.97K | -5.42M | -2.18M | -1.89K |
| Debt Issued (Net) | -1.17M | -445.42K | -603.79K | -1.66M | 538.09K | 196.55K |
| Equity Issued (Net) | 810.34K | 0 | 6.34M | 0 | 0 | 0 |
| Dividends Paid | -1.87M | -400.45K | -1.68M | 0 | -378.79K | -198.44K |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 1.3M | 176K | -3.36M | -3.76M | -2.34M | 0 |
| Net Change in Cash | 13.35K | 5.51M | -798.11K | -1.4M | 3.4M | 509.22K |
| Free Cash Flow | -1.2M | 6.2M | -1.7M | 243.45K | 746.93K | 451.25K |
| FCF Margin % | -5.47% | 15.88% | -5.99% | 0.64% | 1.95% | 14.88% |
| FCF Growth % | - | 465.23% | -797.8% | -67.41% | 65.52% | - |
| FCF per Share | -0.38 | 1.98 | -0.56 | 0.08 | 0.24 | 0.14 |
| FCF Conversion (FCF/Net Income) | -0.39x | 2.79x | -1.91x | 0.29x | 1.26x | 1.58x |
| Interest Paid | 168.19K | 101.68K | 145.95K | 115.01K | 75.42K | 37.44K |
| Taxes Paid | 2.49M | 0 | 1.22M | 1.33M | 1.21M | 0 |
Severe Operating Cash Burn
As reported in recent financial filings, J-Long Group's operating cash flow to net income ratio reached -4.14 in 2024Q2, highlighting a profound disconnect between accounting profitability and the actual cash generation capabilities of the firm's core apparel component distribution business during this period of contraction.
The significant divergence between net income and operating cash flow suggests that reported earnings are not being supported by cash inflows, potentially due to aggressive accruals or timing mismatches in revenue recognition. Investors should monitor whether this negative conversion is a temporary byproduct of inventory management or a structural failure to collect on receivables.
Based on the company's latest quarterly data, the free cash flow margin plummeted to -48.1% in 2024Q4, marking a sharp deterioration from the positive cash generation observed in prior periods and indicating that the business is currently consuming capital at an unsustainable rate relative to its revenue.
The transition to negative free cash flow appears to be driven by both operational losses and a lack of cost discipline during the current sales slump. This trajectory warrants further investigation into whether the company can stabilize its cash burn without further eroding its existing cash reserves.
According to recent financial statements, J-Long Group's capital expenditure to revenue ratio spiked to 5.6% in 2024Q4, which is notably higher than the near-zero intensity observed in previous years, suggesting that the firm is increasing investment even as its core revenue base faces significant downward pressure.
This uptick in capital intensity appears counterintuitive given the current contraction in the apparel market and may indicate either necessary maintenance of aging infrastructure or inefficient capital allocation. Analysts should scrutinize whether these expenditures are truly growth-oriented or merely defensive measures to maintain basic operational capacity.
As indicated by the latest quarterly data, working capital changes have turned negative, with a $187.3K outflow in 2024Q4, suggesting that the company is struggling to manage its cash conversion cycle effectively as demand for its reflective garment trims experiences a sudden and sharp decline.
The shift toward negative working capital changes implies that the company may be facing difficulties in collecting receivables or is being forced to carry excess inventory that is not moving through the supply chain. This trend appears to be a primary contributor to the firm's current cash burn and requires close monitoring of customer payment behavior.
Based on reported figures, J-Long Group continued to pay out $838.4K in dividends during 2024Q4 despite generating negative operating cash flow, a decision that appears to prioritize shareholder returns over the preservation of liquidity during a period of significant operational volatility.
The persistence of dividend payments while the company is burning cash suggests a management strategy that may be disconnected from the current reality of the firm's financial performance. Investors should consider whether this capital allocation policy is sustainable if the current revenue contraction and cash burn persist into future quarters.
Quick answers to the most common questions about buying JL stock.
J-Long Group Limited (JL) generated $7.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
J-Long Group Limited (JL) generated $6.2M 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.
J-Long Group Limited (JL) spent $1.0M 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, J-Long Group Limited (JL) returned $0.4M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.