Cash flow generation remains highly erratic, evidenced by a volatile OCF/NI ratio of -88.86 in 2026Q2 and a significant $8.7M working capital outflow in 2024Q2.
| Metric | TTM | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Jul'08 | Jul'07 |
|---|
| Cash from Operations | -8.49M | 1.25M | -3.16M | -3.28M | -5.39M | -62.29K | -6.91M | -5.6M | -2.07M | 1.56M | 2.59M | 1.06M | 684.12K | -313.34K | 19.97M | -5.18M | 807.31K | -28.75K | -3.74K |
| Operating CF Margin % | - | 1.04% | -2.04% | -2.21% | -3.28% | -0.05% | -5.89% | -5.21% | -2.15% | 1.91% | 2.9% | 1.38% | 1.03% | -0.35% | 21.16% | -7.41% | 1.46% | - | - |
| Operating CF Growth % | -1212.95% | 139.54% | 3.9% | 39.04% | -8546.33% | 99.1% | -23.29% | -170.68% | -232.74% | -39.69% | 143.2% | 55.41% | 318.33% | -101.57% | 485.19% | -742.1% | 2908.23% | -669.28% | - |
| Net Income | 6.82M | 10.2M | -4.23M | -21.14M | -3.2M | -8.38M | -6.46M | -1.32M | -17.06M | -5.64M | 447.16K | 855.63K | -25.36M | -14.33M | 8.14M | 8.43M | 9.82M | -28.75K | -3.74K |
| Depreciation & Amortization | 9.03M | 6.02M | 5.38M | 718K | 1.26M | 1.75M | 2.08M | 1.68M | 1.38M | 1.32M | 1.46M | 2.82M | 3.23M | 2.76M | 2.34M | 810.37K | 396.57K | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 0 | 10.36M | 0 | 3.94M | 34.56K | 197.1K | 7.02M | 2.25M | 1.02M | 1M | 748.91K | 163.27K | 119.05K | 153.44K | 126.33K | 0 | 0 |
| Deferred Taxes | 0 | -29.82K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -7.12M | -15.67M | 1.47M | 9.9M | 1.09M | -542.45K | 673.39K | -3.03M | 5.24M | 2.66M | -2.2M | -7.15M | 12.39M | 11.91M | 1.55M | -249.22K | 0 | 0 | 0 |
| Working Capital Changes | -4.75M | 733.6K | -5.77M | -3.12M | -4.53M | 3.16M | -3.24M | -3.13M | 1.35M | 982.08K | 1.86M | 3.53M | 9.67M | -815.23K | 7.82M | -14.33M | -9.54M | 0 | 0 |
| Change in Receivables | 4.05M | -1.75M | -2.78M | -3.51M | -4.54M | -2.82M | -2.47M | -1.34M | -2.56M | -1.74M | 483.59K | -1.47M | 5.5M | -1.55M | -14.55M | -887.71K | -173.85K | 0 | 0 |
| Change in Inventory | 783.3K | 405.82K | -1.7M | -522.55K | 1.52M | -3.62M | 979.93K | -1.39M | -2.41M | 191.56K | -762.21K | -2.97M | -2.27M | -1.65M | 2.02M | -648.78K | -973.1K | 0 | 0 |
| Change in Payables | 0 | -21.13M | 6M | 1.77M | -3.56M | 6.38M | -317.75K | -528.35K | 3.73M | 3.94M | 1.6M | 1.26M | 524.78K | -239.31K | 15.79M | 1.08M | -2.15M | 0 | 0 |
| Cash from Investing | -1.14M | -18.14M | -2.04M | -316.1K | -306.14K | -2M | -4.84M | -7.33M | -2.98M | -46.55K | 429.81K | -4.37M | -2.11M | -2.4M | -14.86M | -5.25M | -602.23K | 0 | 0 |
| Capital Expenditures | -1.11M | -615.27K | -856.66K | -298.94K | -299.13K | -506.38K | -1.41M | -7.28M | -1.76M | -411.2K | -250.32K | -1.47M | -2.11M | -2.4M | -11.55M | -4.64M | -74.52K | 0 | 0 |
| CapEx % of Revenue | 0.43% | 0.51% | 0.55% | 0.2% | 0.18% | 0.38% | 1.2% | 6.77% | 1.83% | 0.5% | 0.28% | 1.92% | 3.19% | 2.69% | 12.25% | 6.64% | 0.14% | - | - |
| Acquisitions | 0 | -17.52M | -1.12M | -4.38K | 0 | -1.47M | -2.57M | 0 | 0 | 7.88K | -110.72K | 0 | 0 | 0 | -3.31M | -606.8K | -527.71K | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -33.63K | 0 | -66.97K | -12.77K | -7.01K | -97.8K | -871.14K | -29.82K | -1.14M | 0 | 0 | -1.59M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 9.64M | 1.51M | 8M | 2.37M | 4.84M | 3.08M | 19.01M | 8.08M | 4.89M | 10.64M | -401.89K | 2.87M | 1.21M | 3.37M | -7.93M | 15.77M | -400.5K | 0 | 34.09K |
| Debt Issued (Net) | 0 | -4.95M | 4.16M | -4.12M | 4.15M | -6.14M | 10.03M | 8.01M | 4.98M | -3.9M | 2.7M | 7.41M | 961.64K | 2.93M | -7.08M | 258.03K | 346.2K | 0 | 0 |
| Equity Issued (Net) | 0 | 7.63M | 2.59M | 7.33M | 0 | 9.29M | 9.27M | 7.53K | 0 | 10.65M | 2.7M | 0 | 0 | 0 | 406.55K | 15.71M | 0 | 0 | 34.09K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 9.64M | -1.17M | 1.26M | -838.7K | 689.01K | -69.76K | -292.3K | 59.34K | -91.39K | 3.89M | -5.8M | -4.54M | 245.87K | 440.98K | -1.26M | -196.13K | -746.7K | 0 | 0 |
| Net Change in Cash | 18.05M | -14.33M | 1.3M | -3.77M | 666.93K | 3.69M | 6.24M | -6.71M | 3.66M | 11.69M | 2.65M | -421.69K | -78.82K | 690.88K | -2.66M | 5.69M | -194.71K | -28.75K | 30.35K |
| Free Cash Flow | -9.6M | 632.5K | -4.08M | -3.6M | -5.69M | -666.47K | -9.19M | -12.91M | -4.97M | 1.15M | 2.34M | -2M | -1.43M | -2.72M | 8.41M | -9.83M | 732.79K | -28.75K | -3.74K |
| FCF Margin % | -3.71% | 0.53% | -2.64% | -2.42% | -3.46% | -0.5% | -7.83% | -12.01% | -5.17% | 1.41% | 2.62% | -2.59% | -2.16% | -3.04% | 8.92% | -14.04% | 1.33% | - | - |
| FCF Growth % | -6.15% | 115.51% | -13.46% | 36.84% | -754.07% | 92.75% | 28.81% | -159.7% | -532.99% | -50.83% | 217.06% | -39.62% | 47.42% | -132.3% | 185.61% | -1441.04% | 2649.02% | -669.28% | - |
| FCF per Share | -36905.25 | 2571.15 | -63735.58 | -156314.39 | -711513.88 | -83308.88 | -999999.00 | -999999.00 | -994411.00 | 287075.75 | 778462.00 | -665010.67 | -476308.33 | -905899.67 | 999999.00 | -999999.00 | 366396.50 | - | - |
| FCF Conversion (FCF/Net Income) | -1.41x | 0.12x | 0.75x | 0.16x | 1.69x | 0.01x | 1.19x | 6.05x | 0.12x | -0.28x | 5.78x | 1.24x | -0.03x | 0.02x | 2.45x | -0.61x | 0.08x | 1.00x | 1.00x |
| Interest Paid | 17.77K | 6.29K | 13.6K | 64.94K | 262.22K | 455.19K | 108.1K | 0 | 0 | 1.35K | 155.58K | 56.37K | 8.76K | 0 | 0 | 23.87K | 65.01K | 0 | 0 |
| Taxes Paid | 0 | 137.46K | 149.02K | 63.67K | 3.96K | 37.74K | 17.2K | 56.42K | 27.82K | 57.25K | 78.55K | 65.57K | 39.75K | 70.72K | 4.11M | 2.24M | 2.61M | 0 | 0 |
Regulatory Consolidation and Margin Erosion
As reported in recent financial statements, Ridgetech's operating cash flow frequently diverges from net income, with the OCF/NI ratio reaching extreme levels like -88.86 in 2026Q2, suggesting that reported earnings are heavily influenced by non-cash adjustments rather than actual cash generation from core distribution activities.
The persistent disconnect between net income and operating cash flow indicates that the company's reported profitability is not reflective of its underlying cash-generating capacity. Investors should monitor this volatility, as it suggests that the business relies on accounting maneuvers or non-operating gains to mask the fundamental cash burn inherent in its distribution model.
Based on historical quarterly data, Ridgetech's free cash flow trajectory remains highly erratic, swinging from a positive $5.3M in 2026Q2 to a negative $10.4M in 2025Q2, which highlights the company's inability to maintain consistent cash flow generation amidst its ongoing revenue contraction.
The lack of a stable free cash flow trend suggests that the company is struggling to manage its working capital requirements effectively. This instability may indicate that the firm is vulnerable to liquidity shocks if its regional hospital clients continue to delay payments or if procurement tenders become increasingly unfavorable.
According to quarterly filings, Ridgetech's working capital changes have been highly inconsistent, including a significant $8.7M outflow in 2024Q2, which underscores the difficulty of managing inventory and receivables in a low-margin, high-volume distribution environment subject to regulatory pressure.
The erratic nature of working capital movements suggests that the company lacks a disciplined approach to cash conversion, likely due to the extended payment cycles common in the Chinese healthcare sector. This volatility warrants further investigation into whether the company is forced to offer increasingly generous credit terms to retain its remaining hospital contracts.
As indicated by the 2023Q4 data, the inclusion of $8.6M in stock-based compensation significantly distorts the cash flow picture, masking the true extent of the company's operational deficits and complicating the assessment of its long-term viability as a standalone medical distributor.
The use of non-cash adjustments like stock-based compensation appears to obscure the underlying cash burn, potentially misleading investors regarding the company's true operational health. Analysts should adjust for these items to reveal the actual cash drain, which appears to be a structural feature of the current business model.
Quick answers to the most common questions about buying RDGT stock.
Ridgetech Inc. (RDGT) generated $1.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Ridgetech Inc. (RDGT) generated $0.6M 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.
Ridgetech Inc. (RDGT) spent $0.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.