Management prioritizes capital preservation with a $2.37M cash balance, representing 32% of TTM revenue, though this liquidity may be constrained by long-term retention receivables.
| Metric | Mar'25 | Mar'24 | Mar'23 |
|---|
| Cash from Operations | 1.18M | 540.33K | -57.11K |
| Operating CF Margin % | 16.02% | 9.39% | -2.56% |
| Operating CF Growth % | 118.47% | 1046.09% | - |
| Net Income | 1.03M | 1.06M | 351.06K |
| Depreciation & Amortization | 53.81K | 40.72K | 43.86K |
| Stock-Based Compensation | 0 | 0 | 0 |
| Deferred Taxes | -5.9K | -47.24K | 33.65K |
| Other Non-Cash Items | 43.68K | -4.21K | -56.68K |
| Working Capital Changes | 62.55K | -505.52K | -429.01K |
| Change in Receivables | 730.15K | -1.61M | -108.86K |
| Change in Inventory | 0 | 0 | 0 |
| Change in Payables | -122.3K | 1.12M | -120.1K |
| Cash from Investing | -41.09K | 6.41K | -22.61K |
| Capital Expenditures | -41.09K | 0 | -22.61K |
| CapEx % of Revenue | 0.56% | - | 1.01% |
| Acquisitions | 0 | 0 | 0 |
| Investments | - | - | - |
| Other Investing | 0 | 6.41K | 0 |
| Cash from Financing | 346.43K | -33.91K | -8.64K |
| Debt Issued (Net) | -28.73K | -33.91K | -8.64K |
| Equity Issued (Net) | 375.16K | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 |
| Net Change in Cash | 1.49M | 512.83K | -88.36K |
| Free Cash Flow | 1.14M | 540.33K | -79.72K |
| FCF Margin % | 15.46% | 9.39% | -3.58% |
| FCF Growth % | 110.86% | 777.8% | - |
| FCF per Share | 0.06 | 0.03 | -0.00 |
| FCF Conversion (FCF/Net Income) | 1.15x | 0.51x | -0.16x |
| Interest Paid | 800 | 820 | 1.14K |
| Taxes Paid | 475.94K | 32.73K | 0 |
Project-based liquidity concentration
As reported in financial statements, the absence of granular cash flow data for Phoenix Asia Holdings makes it difficult to verify the conversion of its 13.92% net margin into actual operating cash, necessitating caution regarding the firm's reliance on percentage-of-completion accounting for revenue recognition.
The reliance on project-based accounting suggests that reported net income may significantly diverge from cash generated, as revenue is recognized based on progress rather than cash receipts. Investors should monitor the potential buildup of contract assets, which may indicate that earnings are currently outpacing the company's ability to collect cash from its Hong Kong-based clients.
Based on the company's operational model, the typical industry practice of holding 5-10% of contract value as retention receivables suggests that a meaningful portion of Phoenix Asia's cash flow is likely trapped in long-term project cycles, limiting immediate liquidity for reinvestment or operational flexibility.
The firm's specialized substructure work likely involves extended payment terms, which may create a persistent drag on working capital efficiency. This dynamic warrants further investigation into the aging of receivables, as any delay in project sign-offs could lead to a liquidity crunch despite the company's reported profitability.
According to recent filings, the company maintains a $2.37M cash balance, representing approximately 32% of TTM revenue, which indicates that management has prioritized a fortress-like liquidity position over aggressive capital deployment or external financing, likely to mitigate the inherent volatility of the Hong Kong construction sector.
This high cash-to-revenue ratio suggests that the firm is currently operating with minimal debt, which provides a buffer against potential project delays or regulatory shocks. However, the lack of clear capital deployment into specialized machinery may indicate a cautious approach to scaling, potentially limiting the firm's ability to capture larger market share in the near term.
As indicated by the firm's 2024 incorporation and project-based revenue model, the cash flow statement likely obscures the impact of unbilled contract assets, which may mask the true underlying cash generation capacity of the business during periods of rapid revenue expansion.
The use of percentage-of-completion accounting requires significant management judgment, which may lead to discrepancies between accounting profit and actual cash flow. Investors should be wary that the reported 28% revenue growth might not be fully supported by cash inflows, as the firm may be accumulating significant unbilled receivables that are subject to future collection risk.
Quick answers to the most common questions about buying PHOE stock.
Phoenix Asia Holdings Limited Ordinary Shares (PHOE) generated $1.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Phoenix Asia Holdings Limited Ordinary Shares (PHOE) generated $1.1M 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.
Phoenix Asia Holdings Limited Ordinary Shares (PHOE) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.