Cash flow generation is highly unpredictable, evidenced by a massive $11.3M working capital outflow in 2024Q2 and a volatile OCF/NI ratio of -0.52 in 2025Q4.
| Cash from Operations | 4.12M | -12.91M | 55K | 833K | 5.63M | 1.66M |
| Operating CF Margin % | 9.19% | -41.56% | 0.15% | 2.17% | 16.85% | 5.54% |
| Operating CF Growth % | 131.88% | -23572.73% | -93.4% | -85.2% | 239.98% | - |
| Net Income | -331.39K | -3.16M | 1.33M | 1.56M | 2.03M | 1.32M |
| Depreciation & Amortization | 968.16K | 1.21M | 1.32M | 1.63M | 1.6M | 1.67M |
| Stock-Based Compensation | 0 | 1.2M | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 1.01M | 1.55M | -2.78M | 191K | 1.09M | 1.92M |
| Working Capital Changes | 2.47M | -13.7M | 182K | -2.54M | 909K | -3.26M |
| Change in Receivables | -613.81K | -1.27M | 1.31M | -942K | -1.19M | 4.76M |
| Change in Inventory | 2.75M | -9.33M | 2.7M | 940K | -2.76M | -5.73M |
| Change in Payables | -1.03M | 2.04M | -1.58M | 1.89M | -1.33M | -1.48M |
| Cash from Investing | -179.86K | 26K | 6.81M | -1.14M | 343K | -565K |
| Capital Expenditures | -154.6K | -598K | -1.96M | -817K | 0 | -637K |
| CapEx % of Revenue | 0.35% | 1.92% | 5.43% | 2.13% | - | 2.13% |
| Acquisitions | 3.83K | 0 | 0 | 1.45K | 255.23K | 52.2K |
| Investments | - | - | - | - | - | - |
| Other Investing | 0 | 464K | 8.71M | 2K | 87.77K | 19.8K |
| Cash from Financing | -4.85M | 9.22M | -875K | -219K | -4.76M | -899K |
| Debt Issued (Net) | -6.89M | 9.22M | -3.86M | -158.81K | -4.76M | -899K |
| Equity Issued (Net) | 2.05M | 0 | 10.06M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | -10.52M | -77K | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 3.45M | 77K | -778.35K | 0 |
| Net Change in Cash | -916.98K | -3.81M | 6.07M | -530K | 1.21M | 192K |
| Free Cash Flow | 3.96M | -13.51M | -1.9M | 16K | 5.63M | 1.02M |
| FCF Margin % | 8.85% | -43.48% | -5.28% | 0.04% | 16.85% | 3.41% |
| FCF Growth % | 129.32% | -610.95% | -11975% | -99.72% | 452.5% | - |
| FCF per Share | 0.10 | -4.25 | -0.65 | 0.01 | 2.27 | 0.41 |
| FCF Conversion (FCF/Net Income) | -9.50x | 4.52x | 0.03x | 0.85x | 3.13x | 1.26x |
| Interest Paid | 975K | 803K | 1.05M | 748K | 0 | 0 |
| Taxes Paid | 175K | 18K | 675K | 40K | 0 | 0 |
High liquidity and volatility
According to historical quarterly data, the relationship between net income and operating cash flow is highly unstable, with OCF/NI ratios swinging from -104.34 in 2024Q2 to 5.31 in 2025Q2, indicating that reported earnings are frequently decoupled from actual cash generation capabilities within the business.
The extreme volatility in the OCF/NI ratio suggests that accrual-based accounting measures are heavily influenced by non-cash items or timing differences in equipment sales. Investors should monitor whether this disconnect stems from aggressive revenue recognition or the lumpy nature of heavy machinery disposals.
As reported in financial statements, free cash flow margins have fluctuated wildly between -60.8% and 17.5% over the last ten quarters, reflecting a business model that struggles to maintain consistent cash flow generation despite periodic spikes in top-line revenue growth across its regional operations.
The inability to sustain positive FCF suggests that the company's operational scale-up is consuming cash faster than it can be recouped through rental or sales. This trajectory warrants further investigation into whether the current cost structure is fundamentally incompatible with the company's existing revenue model.
Based on MWG's reported figures, working capital changes have been a primary driver of cash flow volatility, with a massive $11.3M outflow in 2024Q2 followed by a $2.2M inflow in 2025Q2, suggesting significant challenges in managing inventory cycles and accounts receivable collections.
These dramatic swings in working capital indicate that the company may be extending credit terms to secure sales or struggling to manage inventory levels effectively. Such fluctuations often mask underlying operational inefficiencies and suggest that cash flow is highly sensitive to the timing of large project payments.
As evidenced by quarterly filings, the company's capital expenditure relative to revenue has reached as high as 6.8%, highlighting the heavy maintenance requirements of its fleet and the ongoing need for reinvestment to keep aging machinery operational in competitive construction and mining markets.
The persistent need for capital expenditure, even during periods of negative net income, suggests that the company is trapped in a cycle of maintenance spending to prevent fleet obsolescence. This capital intensity appears to be a structural headwind that limits the firm's ability to generate free cash.
Quick answers to the most common questions about buying MWG stock.
Multi Ways Holdings Limited (MWG) generated $4.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Multi Ways Holdings Limited (MWG) generated $4.0M 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.
Multi Ways Holdings Limited (MWG) spent $0.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.