Cash generation remains constrained, as evidenced by a low 0.42 OCF/NI ratio and a negative $7.2K working capital change that limits the free cash flow margin to 4.8%.
| Cash from Operations | 802.39K | 388.99K |
| Operating CF Margin % | 6.93% | 3.55% |
| Operating CF Growth % | 106.27% | - |
| Net Income | 1.33M | 770.57K |
| Depreciation & Amortization | 469.3K | 333.58K |
| Stock-Based Compensation | 0 | 0 |
| Deferred Taxes | 5.32K | 224.86K |
| Other Non-Cash Items | 712.11K | 1.29M |
| Working Capital Changes | -1.72M | -2.23M |
| Change in Receivables | -1.89M | 184.47K |
| Change in Inventory | 20.26K | -96.06K |
| Change in Payables | 1.05M | -421.85K |
| Cash from Investing | -121.24K | 625.61K |
| Capital Expenditures | -121.24K | -70.34K |
| CapEx % of Revenue | 1.05% | 0.64% |
| Acquisitions | 0 | 0 |
| Investments | - | - |
| Other Investing | 0 | 695.96K |
| Cash from Financing | -2.43M | -1.32M |
| Debt Issued (Net) | -2.02M | -709.36K |
| Equity Issued (Net) | 0 | 0 |
| Dividends Paid | 0 | 0 |
| Share Repurchases | 0 | 0 |
| Other Financing | -411.24K | -615.49K |
| Net Change in Cash | -2.17M | -657.45K |
| Free Cash Flow | 681.14K | -1.42M |
| FCF Margin % | 5.88% | -12.97% |
| FCF Growth % | 147.9% | - |
| FCF per Share | 0.06 | -0.13 |
| FCF Conversion (FCF/Net Income) | 0.60x | 0.50x |
| Interest Paid | 77.27K | 92.93K |
| Taxes Paid | 297.85K | 321.2K |
Regional market saturation risk
According to the 2024Q4 financial data, RYOJ reported net income of $6.2K, yet generated only $2.6K in operating cash flow, resulting in a concerning OCF/NI ratio of 0.42 that suggests a significant disconnect between accounting profits and actual cash generation for the period.
The substantial gap between net income and operating cash flow indicates that earnings are heavily reliant on non-cash items or accruals rather than immediate cash inflows. Investors should monitor whether this divergence is a temporary timing issue related to consulting contract billing or a structural weakness in the company's ability to collect on its service-based revenue.
As reported in the latest quarterly filings, RYOJ experienced a negative working capital change of $7.2K, which significantly offset the company's operating cash flow and highlights the potential strain of managing receivables within its dual-track consulting and clinical health business model.
This negative working capital movement suggests that the company is currently tying up cash in its operations, likely due to delayed collections from corporate consulting clients or inventory build-up in its clinical segment. Such dynamics warrant further investigation to determine if this is a seasonal trend or a permanent shift in the firm's cash conversion cycle.
Based on the 2024Q4 figures, RYOJ maintained a low capital expenditure of $573, representing a CapEx/Revenue ratio of only 1.4%, which indicates that the firm's current business model requires very little physical asset reinvestment to sustain its existing service operations.
The low capital intensity confirms that the company's primary costs are labor-driven rather than asset-heavy, which protects the balance sheet from significant depreciation burdens. However, this lack of investment may also suggest that the firm is not aggressively scaling its infrastructure to support national expansion beyond its Fukuoka base.
As indicated by the most recent financial statements, RYOJ achieved a free cash flow margin of 4.8%, a figure that appears modest given the company's lean operating structure and suggests that cash generation remains sensitive to fluctuations in working capital and service delivery costs.
While the company remains cash-flow positive, the thin margin suggests that any disruption in the consulting segment's contract renewals could quickly erode the firm's ability to generate excess cash. Analysts should monitor whether this FCF trajectory can improve as the company potentially shifts toward higher-margin digital consulting tools.
Quick answers to the most common questions about buying RYOJ stock.
rYojbaba Co., Ltd. Common Shares (RYOJ) generated $0.8M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
rYojbaba Co., Ltd. Common Shares (RYOJ) generated $0.7M in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
rYojbaba Co., Ltd. Common Shares (RYOJ) spent $0.1M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.