Operational efficiency remains poor, evidenced by a negative free cash flow margin of -108.6% and a consistent inability to convert net income into positive operating cash flow.
| Cash from Operations | -2.35M | -1.93M | -80.76K | 268.29K | -1.32M | 934.25K | 239.19K | 1.92M | 293.04K | 182.47K |
| Operating CF Margin % | -134.72% | -99.98% | -4.1% | 10.31% | -27.56% | 18.1% | 3.41% | 27.36% | 6% | 4.91% |
| Operating CF Growth % | -21.64% | -2287.47% | -130.1% | 120.38% | -240.92% | 290.58% | -87.54% | 555.25% | 60.6% | - |
| Net Income | -3.3M | -3.1M | -5.93M | -5.74M | -2.75M | -7.94M | 1.54M | 1.19M | 1.19M | 141.54K |
| Depreciation & Amortization | 82.3K | 203.25K | 250.16K | 320.01K | 345.41K | 331.84K | 180.92K | 129.44K | 99.23K | 88.96K |
| Stock-Based Compensation | 0 | 352.1K | 554.57K | 2.33M | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 3.23M | 328.15K | -192.68K | -101.72K | -7.72K | -5.85K | 0 | 0 |
| Other Non-Cash Items | 1.85M | 996.69K | 408.69K | 1.12M | 2.89M | 6.7M | 66.89K | -2 | 1.44M | 1.34M |
| Working Capital Changes | -971.74K | -381.56K | 1.42M | 1.9M | -1.61M | 1.95M | -1.54M | 608.99K | -991.33K | -58.63K |
| Change in Receivables | -480.56K | -321.42K | 912.95K | 831.47K | -519.24K | 104K | -1.81M | 384.43K | -942.97K | -1.03M |
| Change in Inventory | -14.53K | -190.29K | 408.95K | -180.8K | 38.62K | 39.71K | 177.64K | -274.38K | 384.22K | -57.41K |
| Change in Payables | -114.08K | -29.25K | 9.7K | -22.79K | -619.54K | 302.27K | -567.31K | 966.57K | -1.47M | -65.06K |
| Cash from Investing | 63.52K | 26.42K | -12.3K | -46.91K | -5.81M | -5.5M | -610.09K | -1.14M | -186.31K | -95.76K |
| Capital Expenditures | -2.02K | -7.06K | -70.68K | -62.49K | -93.04K | -406.66K | -610.09K | -1.05M | -186.31K | -96.99K |
| CapEx % of Revenue | 0.12% | 0.37% | 3.58% | 2.4% | 1.95% | 7.88% | 8.7% | 14.97% | 3.82% | 2.61% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.23K |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 65.54K | 33.49K | 58.38K | 15.58K | 3.13M | -1.5M | -11.28K | -92.42K | -7.13K | -36.04K |
| Cash from Financing | 8.4M | -2.62M | 2.94M | 1.6M | 12.41M | 3.02M | 9.04M | -314.22K | -50.56K | -128.59K |
| Debt Issued (Net) | -65.11K | 1.31M | 4M | 2.77M | -124.95K | 8.8M | 69.49K | -314.22K | 0 | 0 |
| Equity Issued (Net) | 1000K | 0 | 1000K | 1000K | 0 | 0 | 1000K | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 5.7M | -3.93M | -3.26M | -4.29M | 12.53M | -5.78M | 2.48M | 0 | -50.56K | -128.59K |
| Net Change in Cash | 6.05M | -5.29M | 1.8M | 2.21M | 6.07M | -2M | 8.63M | 494.68K | 54.13K | -43.91K |
| Free Cash Flow | -2.35M | -1.94M | -151.44K | 205.8K | -1.41M | 527.59K | -370.89K | 869.44K | 106.73K | 85.48K |
| FCF Margin % | -134.84% | -100.34% | -7.68% | 7.91% | -29.5% | 10.22% | -5.29% | 12.39% | 2.19% | 2.3% |
| FCF Growth % | -21.3% | -1177.8% | -173.59% | 114.6% | -367.18% | 242.25% | -142.66% | 714.58% | 24.86% | - |
| FCF per Share | -5.81 | -2.23 | -0.57 | 4.95 | -48.98 | 42.67 | -36.07 | - | - | - |
| FCF Conversion (FCF/Net Income) | 0.71x | 0.62x | 0.01x | -0.05x | 0.48x | -0.09x | 0.16x | 1.62x | 0.25x | 1.29x |
| Interest Paid | 21.24K | 0 | 0 | 3.2K | 5.55K | 287.81K | 1.49K | 0 | 197 | 0 |
| Taxes Paid | 0 | 0 | 0 | 16.73K | 3.08K | 10.36K | 51.76K | 22.36K | 7.09K | 0 |
Unsustainable Cash Burn Rate
As reported in recent financial filings, SXTC exhibits a persistent divergence between net income and operating cash flow, with the OCF/NI ratio frequently fluctuating, suggesting that reported earnings are not being supported by actual cash generation from the company's core pharmaceutical processing operations.
The erratic relationship between net income and operating cash flow indicates that accounting accruals are likely masking the underlying cash-generative weakness of the business. Investors should monitor this gap, as it suggests that the company's reported losses may be understating the true severity of the cash burn occurring at the operational level.
Based on the provided quarterly data, SXTC's free cash flow margins have remained consistently negative, reaching as low as -163.6% in recent periods, which highlights a structural inability to generate self-sustaining cash flow despite the company's ongoing efforts to maintain its specialized TCMP manufacturing operations.
The persistent negative FCF trajectory suggests that the company is currently consuming its capital reserves to fund basic operations rather than growth initiatives. This trend appears to be accelerating, which may indicate that the current business model is not viable without continuous reliance on existing balance sheet liquidity.
According to the company's cash flow statements, working capital changes have been highly volatile, with significant outflows of $542.4K in recent quarters, indicating that the firm is struggling to manage its inventory and receivables effectively within its transactional hospital-based procurement model.
The erratic nature of working capital movements suggests potential inefficiencies in the collection cycle or an inability to optimize inventory levels relative to demand. This volatility complicates cash forecasting and may imply that the company is forced to tie up precious liquidity in slow-moving herbal inventory.
As evidenced by the cash flow statements, the company's reliance on non-cash adjustments like depreciation and amortization, alongside minimal capital expenditure, obscures the fact that the business is essentially a cash-burning entity that has failed to achieve the scale necessary for operational self-sufficiency.
The minimal capital expenditure relative to revenue suggests that the company is not investing in the infrastructure required to modernize its processing capabilities. This lack of investment, combined with persistent cash outflows, warrants further investigation into whether the company's current assets are being adequately maintained or are facing long-term obsolescence.
Quick answers to the most common questions about buying SXTC stock.
China SXT Pharmaceuticals, Inc. (SXTC) generated $-2.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
China SXT Pharmaceuticals, Inc. (SXTC) reported negative free cash flow of $2.3M in 2025, indicating capital requirements exceeded cash from operations.
China SXT Pharmaceuticals, Inc. (SXTC) 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.