The company's liquidity is highly constrained, with a cash balance of only $759,891 against $15 million in revenue, creating significant risk regarding working capital management.
| Metric | Apr'25 | Apr'24 | Apr'23 |
|---|
| Cash from Operations | -926.04K | 609.82K | 996.13K |
| Operating CF Margin % | -6.03% | 2.52% | 4.56% |
| Operating CF Growth % | -251.86% | -38.78% | - |
| Net Income | 24.93K | 2.02M | 821.27K |
| Depreciation & Amortization | 85.68K | 102.99K | 118.9K |
| Stock-Based Compensation | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 |
| Other Non-Cash Items | 37.26K | 22.07K | -1.62M |
| Working Capital Changes | -1.07M | -1.54M | 1.67M |
| Change in Receivables | -446.1K | 1.25M | 1.34M |
| Change in Inventory | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 |
| Cash from Investing | -452.76K | -123.56K | -15.55K |
| Capital Expenditures | -19.47K | -31.38K | -15.55K |
| CapEx % of Revenue | 0.13% | 0.13% | 0.07% |
| Acquisitions | 0 | 0 | 0 |
| Investments | - | - | - |
| Other Investing | -433.29K | -92.18K | 0 |
| Cash from Financing | 270.23K | -231.08K | -543.53K |
| Debt Issued (Net) | 598.12K | -31.08K | -643.53K |
| Equity Issued (Net) | 200K | 250K | 350K |
| Dividends Paid | -1M | -450K | -250K |
| Share Repurchases | 0 | 0 | 0 |
| Other Financing | 472.11K | 0 | 0 |
| Net Change in Cash | -1.11M | 255.18K | 437.05K |
| Free Cash Flow | -945.51K | 578.44K | 980.58K |
| FCF Margin % | -6.16% | 2.39% | 4.49% |
| FCF Growth % | -263.46% | -41.01% | - |
| FCF per Share | -0.03 | 0.02 | 0.03 |
| FCF Conversion (FCF/Net Income) | -21.55x | 0.30x | 1.23x |
| Interest Paid | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 |
Severe liquidity and solvency risk
Given the absence of reported cash flow data, the relationship between net income and operating cash flow remains opaque, though the company's razor-thin 0.28% net margin suggests that any divergence between accounting profits and actual cash generation could quickly lead to a critical liquidity shortfall.
The reliance on percentage-of-completion accounting in the engineering sector often creates a significant gap between recognized revenue and actual cash receipts. Investors should monitor whether the company is effectively converting its reported earnings into cash or if it is merely accumulating unbilled contract assets that may prove difficult to collect.
As indicated by the lack of disclosed cash flow statements, the company's ability to generate free cash flow remains unverified, leaving investors to infer potential cash burn based on the 36.54% revenue contraction and the resulting pressure on the firm's limited $759,891 cash position.
Without clear visibility into free cash flow margins, it is difficult to determine if the business can sustain its operations without external financing. The current revenue decline likely forces the company to consume its existing cash reserves to cover fixed overheads, which warrants extreme caution regarding future solvency.
Based on the reported financial snapshot, the company's low cash-to-revenue ratio suggests that any inefficiency in collections or inventory management could severely impair its ability to fund ongoing projects, as the firm appears to lack the liquidity buffer necessary to navigate cyclical downturns in the construction sector.
The company's reliance on project-based revenue makes it highly susceptible to payment delays from clients, which would directly impact its working capital cycle. If the firm is forced to finance its clients through extended payment terms, the resulting cash flow strain could become the primary driver of operational failure.
While the balance sheet shows low debt, the absence of cash flow reporting obscures the true impact of capitalized costs and potential intercompany service allocations from the parent entity, XJL International, which may be masking the underlying cash-generating capacity of the core engineering business.
The lack of transparency regarding cash adjustments makes it impossible to confirm if the company is truly self-sustaining or if it relies on support from its parent organization. Analysts should investigate whether intercompany transactions are being used to manage the appearance of liquidity in an otherwise cash-constrained environment.
Quick answers to the most common questions about buying MAGH stock.
Magnitude International Ltd Ordinary Shares (MAGH) generated $-0.9M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Magnitude International Ltd Ordinary Shares (MAGH) reported negative free cash flow of $0.9M in 2024, indicating capital requirements exceeded cash from operations.
Magnitude International Ltd Ordinary Shares (MAGH) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2024, Magnitude International Ltd Ordinary Shares (MAGH) returned $1.0M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.