Cash flow volatility remains a primary concern, evidenced by a massive $10.1 billion working capital outflow in 2025Q4 and an OCF/NI ratio of 547.73 that highlights a disconnect between accounting earnings and cash generation.
| Cash from Operations | -8.61B | 15.93B | 50.69B | 7.38B | 8.34B | 3.14B | -1.79B | -1.35B |
| Operating CF Margin % | -7.88% | 11.02% | 40.94% | 16.02% | 31.28% | 35.12% | -632.48% | - |
| Operating CF Growth % | -154.05% | -68.57% | 586.88% | -11.51% | 165.63% | 275.05% | -33.18% | - |
| Net Income | 1.14B | 8.03B | 11.7B | -2.03B | -321.45M | -166.03M | -2.42B | -1.17B |
| Depreciation & Amortization | 4.64B | 3.06B | 1.81B | 1.21B | 590.4M | 321M | 116.39M | 60.5M |
| Stock-Based Compensation | 1.26B | 2.63B | 2.38B | 2.05B | 1.1B | 142.79M | 0 | 0 |
| Deferred Taxes | -925.49M | 0 | -1.8M | -128.34M | 168.64M | -22.85M | 0 | 0 |
| Other Non-Cash Items | 407.8M | 142.01M | 31.23B | 1.24B | 185.52M | -202.95M | 661.33M | 68.44M |
| Working Capital Changes | -15.13B | 2.07B | 3.58B | 5.04B | 6.62B | 3.07B | -153.56M | -310.44M |
| Change in Receivables | 14.1M | 8.2M | -95.1M | 72.21M | -5.46M | -107.25M | -8.3M | 72.21M |
| Change in Inventory | -2.58B | -3.1B | -1.25B | -5.92B | -611.56M | -516.87M | -510.55M | 3.13M |
| Change in Payables | -13.02B | 2.21B | 31.85M | 10.59B | 6.21B | 2.53B | 602.28M | -62.5M |
| Cash from Investing | -703.13M | -41.14B | -12.07M | -4.36B | -4.26B | -18.74B | -2.57B | -191.51M |
| Capital Expenditures | -4.21B | -7.73B | -6.51B | -5.13B | -3.44B | -675.19M | -952.9M | -970.73M |
| CapEx % of Revenue | 3.85% | 5.35% | 5.25% | 11.13% | 12.92% | 7.55% | 336% | - |
| Acquisitions | 0 | 0 | 0 | 2.09M | -630.7M | -35.45M | -560M | 25M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 1.3B | 970.22M | 6.49B | 4.53M | 38K | 54.24M | 473.08M | -573.55M |
| Cash from Financing | 767.4M | -415.65M | 185.38M | 5.64B | 16.71B | 24.71B | 5.66B | 1.11B |
| Debt Issued (Net) | 692.74M | -430.31M | -1B | 3.08B | 5.7B | -144.7M | 401.36M | 150M |
| Equity Issued (Net) | 14.66M | 0 | 1.17M | 2.46B | 11B | 24.86B | 5.16B | 688.8M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | -3.79M | -15.14M |
| Other Financing | 60M | 14.66M | 1.19B | 96.73M | 1.14M | 0 | 97.41M | 269.86M |
| Net Change in Cash | -9B | -25.42B | 50.91B | 9.93B | 20.32B | 8.74B | 1.34B | -426.36M |
| Free Cash Flow | -12.82B | 8.2B | 44.19B | 2.25B | 4.9B | 2.46B | -2.75B | -2.32B |
| FCF Margin % | -11.73% | 5.68% | 35.68% | 4.89% | 18.36% | 27.57% | -968.48% | - |
| FCF Growth % | -256.24% | -81.44% | 1861.77% | -53.99% | 98.64% | 189.73% | -18.51% | - |
| FCF per Share | -11.96 | 7.71 | 41.78 | 2.32 | 5.28 | 2.72 | -3.04 | -2.56 |
| FCF Conversion (FCF/Net Income) | -7.87x | 1.98x | 4.33x | -3.60x | -26.29x | -19.65x | 0.74x | 0.85x |
| Interest Paid | 142.47M | 96.67M | 41.47M | 87.94M | 0 | 0 | 0 | 0 |
| Taxes Paid | 1.46B | 645.53M | 58.65M | 1.33M | 0 | 0 | 0 | 0 |
Volatile operating cash conversion
As reported in recent financial statements, Li Auto's OCF/NI ratio reached 547.73 in 2025Q4, highlighting a massive disconnect between reported net income of $6.4 million and the $3.5 billion in operating cash flow, which suggests that non-cash adjustments and working capital swings are currently dominating the company's reported profitability.
The extreme volatility in the OCF/NI ratio indicates that net income is currently a poor proxy for the company's actual cash-generating capability. Investors should monitor whether this divergence is driven by sustainable operational efficiencies or temporary accounting timing differences that may reverse in subsequent quarters.
Based on the provided quarterly data, Li Auto's FCF margin has swung from a peak of 37.8% in 2023Q3 to a negative 27.0% in 2025Q3, illustrating a highly unstable cash flow trajectory that appears increasingly sensitive to the company's recent revenue contraction and aggressive capital expenditure requirements.
The inability to maintain positive free cash flow suggests that the company's current business model is struggling to self-fund its operations and growth initiatives. This trend warrants further investigation into whether the recent cash burn is a structural shift or a temporary byproduct of the transition to new vehicle architectures.
According to historical figures, Li Auto's CapEx/Rev ratio has fluctuated significantly, reaching 9.1% in 2025Q4, which indicates that the company is maintaining a high level of capital intensity even as revenue growth faces downward pressure from increased competition in the premium SUV segment.
High capital intensity relative to declining revenue suggests that the company is continuing to invest heavily in manufacturing capacity and R&D despite a cooling demand environment. This strategy may lead to further margin compression if the expected returns on these capital investments fail to materialize in the near term.
As evidenced by the 2025Q4 data, Li Auto experienced a significant working capital outflow of $10.1 billion, a sharp reversal from the positive inflows seen in previous periods, which suggests that inventory management or payment cycles are currently placing substantial pressure on the company's overall liquidity position.
The sudden shift in working capital dynamics may indicate an accumulation of unsold inventory or changes in supplier payment terms that are consuming cash at an accelerated rate. Analysts should monitor these fluctuations closely to determine if they represent a structural challenge in managing the supply chain during a period of slowing sales.
Quick answers to the most common questions about buying LI stock.
Li Auto Inc. (LI) generated $-8611.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Li Auto Inc. (LI) reported negative free cash flow of $12.82B in 2025, indicating capital requirements exceeded cash from operations.
Li Auto Inc. (LI) spent $4.21B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.