Cash conversion efficiency remains erratic, as demonstrated by an OCF/NI ratio that has ranged from 0.23 to over 29.00, complicating the firm's ability to fund dividend payments that reached $14.4 billion in 2026Q4.
| Metric | Feb'26 | Feb'25 | Feb'24 | Feb'23 | Feb'22 | Feb'21 | Feb'20 | Feb'19 | Feb'18 | Feb'17 | Feb'16 | Feb'15 | Feb'14 | Feb'13 | Feb'12 | Feb'11 | Feb'10 | Feb'09 | Feb'08 | Feb'07 |
|---|
| Cash from Operations | -88.03B | 197.54M | -157.21M | -130.37M | -203.13M | -62.35M | -15.14M | -39.98M | -30.78M | 6.74M | -18.64M | -36.6M | -29.53M | -36.81M | -22.71M | 28.28M | 21.18M | 36.51M | -167.08M | 0 |
| Operating CF Margin % | -70.02% | 209.78% | -226.05% | -186.64% | -262.23% | -156.21% | -19.34% | -105.45% | -92.19% | 24.93% | -76.85% | -166.33% | -161.78% | -185.24% | -124.69% | 126.41% | -746.13% | 156.12% | -781.28% | - |
| Operating CF Growth % | -44663.33% | 225.66% | -20.58% | 35.82% | -225.81% | -311.67% | 62.12% | -29.9% | -556.65% | 136.15% | 49.07% | -23.95% | 19.78% | -62.09% | -180.31% | 33.53% | -42.01% | 121.85% | - | - |
| Net Income | 0 | 28.09M | 8.93M | 24.68M | 45.74M | 14.78M | 55.74M | 18.51M | 17.68M | 11.39M | 11.65M | 11.01M | 8.74M | 14.6M | 13.28M | 16.96M | -10.46M | -21.32M | -5.45M | -130K |
| Depreciation & Amortization | 4.8B | 5.03M | 0 | 3.59M | 4.42B | 1.37M | 1.34M | 1.19M | 990.03M | 829.48M | 913.77M | 929.77M | 903.29M | 482.31M | 674.72M | 397.16M | 10.16M | 193.46K | 502.47K | 0 |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -196.31M | 0 | 0 | 0 | -673.65K | 0 | 0 | -1.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -92.64B | 162.61M | -159.99M | -151.87M | -4.68B | -67.98M | -81.42M | -57.56M | -1.04B | -835.65M | -956.32M | -978.42M | -953.15M | -541.54M | -689.37M | -390.03M | 20.01M | 53.96M | -157.16M | 0 |
| Working Capital Changes | 0 | 1.81M | -6.15M | -6.76M | 10.46M | -10.52M | 9.2M | -1.09M | 587.24K | 1.53M | 12.26M | 1.04M | 11.59M | 7.83M | -21.34M | 4.18M | 1.47M | 3.67M | -4.97M | 130K |
| Change in Receivables | 0 | 2.95M | -1.78M | -3.5M | -7.25B | 8.52B | -2.56B | -2.68M | 253.04M | 1.19B | -300M | 80.65K | 1.82B | -1.76B | -59.51M | 1.81M | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 95.58M | -1.68M | -3.66M | -419.74K | -751.04M | 727.94M | -1.14B | 0 | 215.46M | 0 | 73.14M | 493.51K | 389.53M | -269.91M | -14.53K | -199.37K | 0 | -12.88M | 608.42M | 0 |
| Cash from Investing | -124.87B | 0 | 0 | 2.25B | -55.08B | -78.08B | -19.89B | -198.66B | -41.39B | 7.03B | -41.02B | -31.61B | -49.47B | -50.11B | -5.11B | 22.96B | 0 | 20.93B | -172.23B | 0 |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | - | - | - | 0% | - | 0% | 0% | - | - | - | 132.84% | 98.69% | 209.96% | - | 0% | 0% | - | 0% | 0% | - |
| Acquisitions | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 354.12B | 978.08M | 1.14B | 972.59M | 817.57M | 554.31M | 485.63M | 402.02M | 342.69M | 250.53M | 271.17M | 223.51M | 186.28M | 0 | 95.36M | 80.04M | 89.37M | 118.91M | 188.49M | 0 |
| Other Investing | 0 | -110.64B | 215.83B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -15.19B | 0 | 0 | 0 |
| Cash from Financing | -94.91B | -33.32M | 101.64M | 173.58M | 226.09M | 52.81M | -7.5M | 88.3M | 22.47M | 8.31M | 19.19M | 35.19M | 32.67M | 35.63M | 13.3M | -20.89M | -24.18M | -31.23M | 168.16M | 0 |
| Debt Issued (Net) | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | 0 | 32.75M | 46.86M | -10.82M | 24.29M | -3.61M | 85.9M | 30.85M | 7.76M | -3.33M | -356.79K | 0 | 0 | 0 | 0 | 15M | 0 | 0 | 108.75M | 0 |
| Dividends Paid | -52.36B | -40.75M | -32.05M | -22.67M | -18.16M | -11.27M | -17M | -12.01M | -9.01M | -6.79M | -7.91M | -1.43M | -2.51M | -3.3M | -1.97M | -1.18M | -2.07M | -11.77M | -9.62M | 0 |
| Share Repurchases | -54.31M | 0 | -2.16M | -10.82M | -2.55M | -3.61M | 0 | 0 | 0 | -3.33M | -356.79K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -42.55B | 2.35M | -5.17M | -10.68M | -10.79M | -3.75K | -1.95M | -2.88M | -1.28M | -3.23M | -1.1M | -1.97M | -2.82M | -1.37M | -235.45K | -185.14K | -103.58K | 0 | -8.2M | 0 |
| Net Change in Cash | -182.94B | 164.22M | -55.57M | 43.21M | 22.96M | -9.54M | -22.64M | 48.32M | -8.31M | 15.05M | 552.12K | -1.41M | 3.14M | -1.18M | -9.41M | 7.38M | -3M | 5.28M | 1.07M | 0 |
| Free Cash Flow | -88.03B | 197.54M | -157.21M | -130.37M | -203.13M | -62.35M | -15.14M | -39.98M | -30.78M | 6.74M | -18.64M | -36.6M | -29.53M | -36.81M | -22.71M | 28.28M | 21.18M | 36.51M | -167.08M | 0 |
| FCF Margin % | -70.02% | 209.78% | -226.05% | -186.64% | -262.23% | -156.21% | -19.34% | -105.45% | -92.19% | 24.93% | -76.85% | -166.33% | -161.78% | -185.24% | -124.69% | 126.41% | -746.13% | 156.12% | -781.28% | - |
| FCF Growth % | -44663.33% | 225.66% | -20.58% | 35.82% | -225.81% | -311.67% | 62.12% | -29.9% | -556.65% | 136.15% | 49.07% | -23.95% | 19.78% | -62.09% | -180.31% | 33.53% | -42.01% | 121.85% | - | - |
| FCF per Share | -5553.83 | 14.20 | -12.41 | -10.90 | -17.73 | -5.57 | -1.63 | -5.67 | -5.11 | 1.17 | -3.34 | -6.80 | -6.00 | -8.95 | -6.61 | 11.60 | 19.95 | 44.04 | -215.26 | - |
| FCF Conversion (FCF/Net Income) | - | 7.03x | -17.60x | -5.28x | -4.44x | -4.22x | -0.27x | -2.16x | -1.74x | 0.59x | -1.60x | -3.32x | -3.47x | -2.62x | -1.71x | 1.67x | -2.02x | -1.71x | 30.65x | - |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.27M | 2.63M | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 140.32K | 88.95K | 0 | 0 |
Portfolio Valuation Sensitivity
As reported in recent financial statements, Saratoga's operating cash flow frequently decouples from net income, with the OCF/NI ratio exhibiting extreme volatility, ranging from 0.23 to over 29.00, which suggests that reported earnings may not reliably reflect the underlying cash-generating capacity of the investment portfolio.
The significant variance between net income and operating cash flow indicates that non-cash adjustments and valuation changes are heavily influencing the bottom line. Investors should monitor this divergence closely, as it suggests that the firm's reported profitability is highly sensitive to accounting estimates rather than realized cash inflows.
Based on the provided quarterly data, Saratoga's free cash flow trajectory remains highly erratic, with margins swinging from a negative 198.8% in 2026Q4 to a positive 110.2% in 2026Q1, highlighting the inherent difficulty in forecasting cash availability for dividend distributions and debt service obligations.
This volatility appears to be driven by the lumpy nature of investment exits and the timing of interest receipts within the BDC structure. The lack of a consistent free cash flow trend warrants further investigation into whether the current dividend policy is sustainable without relying on external capital raises.
According to historical filings, working capital changes have contributed inconsistently to cash flow, with fluctuations ranging from a $7.2M inflow to a $6.4M outflow, suggesting that the timing of interest accruals and collections remains a primary driver of short-term liquidity for the firm.
The sensitivity of cash flow to these working capital shifts implies that the firm's liquidity position is susceptible to the payment behavior of its lower-middle-market borrowers. Any sustained trend of negative working capital changes may indicate that borrowers are increasingly utilizing payment-in-kind options rather than cash interest.
As evidenced by the quarterly cash flow data, Saratoga consistently prioritizes dividend payments, which have totaled as much as $14.4B in a single quarter, often exceeding the cash generated from operations and necessitating a reliance on external financing to maintain these distributions to shareholders.
The persistent use of cash for dividends despite volatile operating cash flow suggests a management commitment to shareholder returns that may outpace the firm's organic cash generation. This strategy appears to increase the firm's reliance on capital markets, which could become a vulnerability during periods of market stress.
Quick answers to the most common questions about buying SAR stock.
Saratoga Investment Corp. (SAR) generated $-88029.7M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Saratoga Investment Corp. (SAR) reported negative free cash flow of $88.03B in 2026, indicating capital requirements exceeded cash from operations.
Saratoga Investment Corp. (SAR) spent $0.0M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Saratoga Investment Corp. (SAR) returned $52.36B to shareholders via cash dividends and spent $54.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.