Liquidity is under significant pressure as evidenced by a -163.2% free cash flow margin and a $115.3K outflow from working capital in 2024Q4.
| Cash from Operations | -775K | -63.64K | -116.15K | 80.77K |
| Operating CF Margin % | -172.92% | -10.12% | -17.09% | 11.49% |
| Operating CF Growth % | -1117.86% | 45.21% | -243.81% | - |
| Net Income | -660.59K | -241.22K | 83.98K | 192.46K |
| Depreciation & Amortization | 72.43K | 63.13K | 54.08K | 65.95K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 |
| Deferred Taxes | 21.83K | -19.29K | -2.09K | -255 |
| Other Non-Cash Items | 21.84K | 21.52K | 15.52K | 8.86K |
| Working Capital Changes | -230.51K | 112.22K | -267.65K | -186.25K |
| Change in Receivables | -119.98K | 212.31K | -281.41K | 106.09K |
| Change in Inventory | -67.55K | 33.5K | -63.94K | 14.3K |
| Change in Payables | -7.2K | 7.06K | -11.59K | -10.21K |
| Cash from Investing | -861 | 0 | 0 | 0 |
| Capital Expenditures | -861 | 0 | 0 | 0 |
| CapEx % of Revenue | 0.19% | 0% | - | 0% |
| Acquisitions | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 |
| Cash from Financing | 6.71M | 220.59K | 78.14K | -72.82K |
| Debt Issued (Net) | 251.54K | 0 | 0 | 46.48K |
| Equity Issued (Net) | 1000K | 1.13K | 0 | 0 |
| Dividends Paid | 0 | 0 | -398.44K | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 |
| Other Financing | -1.33M | 219.46K | 476.58K | -119.3K |
| Net Change in Cash | 5.93M | 155.16K | -64.46K | 10.99K |
| Free Cash Flow | -775.86K | -63.64K | -116.15K | 80.77K |
| FCF Margin % | -173.11% | -10.12% | -17.09% | 11.49% |
| FCF Growth % | -1119.22% | 45.21% | -243.81% | - |
| FCF per Share | -0.06 | -0.00 | -0.01 | 0.01 |
| FCF Conversion (FCF/Net Income) | 1.17x | 0.26x | -1.38x | 0.42x |
| Interest Paid | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 38.99K |
Liquidity and operational scale
As reported in recent financial filings, PTHL's operating cash flow of -$387.5K in 2024Q4 significantly trails its net income profile, indicating a persistent inability to convert accounting profits into tangible liquidity while the business model remains in a state of structural cash burn.
The consistent divergence between net income and operating cash flow suggests that the company's accrual-based earnings are not supported by actual cash inflows from its hospital clients. This pattern implies that the firm may be struggling with long-dated receivables or high non-cash expenses that do not alleviate the underlying pressure on its cash reserves.
Based on the latest quarterly data, PTHL's free cash flow margin has plummeted to -163.2%, reflecting a rapid depletion of capital that appears to be accelerating as the company fails to achieve the necessary scale to offset its fixed operating costs.
The negative trajectory of free cash flow highlights a business model that is currently consuming capital at an unsustainable rate relative to its revenue base. Investors should monitor whether this trend continues, as the lack of positive cash generation suggests that the company's current operational strategy is value-destructive.
According to the provided cash flow statements, working capital changes have become a consistent drag on liquidity, with a $115.3K outflow in 2024Q4 suggesting that the company is facing increasing difficulty in collecting payments from its domestic Chinese hospital customer base.
The negative working capital movement indicates that the company's cash conversion cycle is likely lengthening, which is a common challenge for medical device firms operating within public procurement systems. This trend warrants further investigation into whether the company is offering extended payment terms to maintain its market presence.
As indicated by the historical financial data, PTHL has ceased all significant capital deployment activities, such as dividends or share repurchases, as the company prioritizes the preservation of its remaining $6.1 million cash cushion to fund ongoing operational deficits.
The absence of capital allocation toward growth or shareholder returns reflects a defensive posture necessitated by the company's inability to generate self-sustaining cash flow. This suggests that management is currently focused on survival rather than strategic investment, which may limit the firm's ability to pivot or innovate in a competitive market.
Quick answers to the most common questions about buying PTHL stock.
Pheton Holdings Ltd Class A Ordinary Shares (PTHL) generated $-0.8M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Pheton Holdings Ltd Class A Ordinary Shares (PTHL) reported negative free cash flow of $0.8M in 2024, indicating capital requirements exceeded cash from operations.
Pheton Holdings Ltd Class A Ordinary Shares (PTHL) 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.