Cash flow generation is currently strained, highlighted by a negative 19.17 operating cash flow to net income ratio and a negative 21.6% free cash flow margin in 2024Q4.
| Cash from Operations | -1.32M | 142.91M | 313.34M |
| Operating CF Margin % | -0.01% | 4.13% | 10.4% |
| Operating CF Growth % | -100.92% | -54.39% | - |
| Net Income | 104.92M | 231.6M | 51.22M |
| Depreciation & Amortization | 1.56B | 259.3M | 227.91M |
| Stock-Based Compensation | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 |
| Other Non-Cash Items | 1.55B | -125.36M | -41.27M |
| Working Capital Changes | -3.22B | -222.62M | 75.48M |
| Change in Receivables | -2.75B | -187.36M | 116.79M |
| Change in Inventory | -103.91M | 10K | -117K |
| Change in Payables | 923.03K | 24.4M | -25.46M |
| Cash from Investing | 2.01M | 114.88M | -15.92M |
| Capital Expenditures | -319.91M | -98.49M | -92.8M |
| CapEx % of Revenue | 1.3% | 2.85% | 3.08% |
| Acquisitions | 0 | 100M | 0 |
| Investments | - | - | - |
| Other Investing | 321.93M | 112.61M | 76.32M |
| Cash from Financing | -1.23M | -233.2M | -280.92M |
| Debt Issued (Net) | -2.48B | -263.2M | -280.92M |
| Equity Issued (Net) | 1000K | 1000K | 0 |
| Dividends Paid | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 |
| Other Financing | 2.47B | 0 | 0 |
| Net Change in Cash | -492M | 24.59M | 16.5M |
| Free Cash Flow | -1.69B | 44.43M | 220.54M |
| FCF Margin % | -6.88% | 1.28% | 7.32% |
| FCF Growth % | -3906.43% | -79.86% | - |
| FCF per Share | -0.03 | 0.89 | 4.41 |
| FCF Conversion (FCF/Net Income) | -0.01x | 1.04x | 9.51x |
| Interest Paid | 152.5M | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 |
Working capital liquidity crunch
As reported in recent quarterly filings, THH's operating cash flow to net income ratio reached a negative 19.17 in 2024Q4, signaling a profound disconnect between accounting profits and actual cash generation that warrants immediate investor scrutiny regarding the sustainability of the company's current business model.
The persistent inability to convert reported net income into positive operating cash flow suggests that THH's earnings are heavily reliant on non-cash accruals or timing differences. This divergence implies that the company's growth is consuming cash at an unsustainable rate, potentially masking underlying operational inefficiencies.
Based on the latest financial data, THH's free cash flow margin plummeted to negative 21.6% in 2024Q4, reflecting a sharp deterioration in the company's ability to fund its own operations and capital requirements through internal cash generation alone.
The transition from positive free cash flow in early 2024 to significant outflows by year-end indicates that the firm's scaling efforts are becoming increasingly capital-intensive. Investors should monitor whether this trend represents a temporary investment phase or a structural inability to achieve positive cash flow at higher volumes.
According to the provided cash flow statements, THH experienced a negative working capital change of $1.6 million in 2024Q4, which appears to be the primary driver behind the company's recent inability to generate positive cash from its core operating activities.
The consistent negative working capital changes suggest that the company is struggling with either delayed collections or an aggressive build-up of inventory and prepayments. This pattern indicates that the firm's cash conversion cycle is likely lengthening, which may necessitate external financing if the trend continues.
As indicated by the financial statements, THH maintained a capital expenditure to revenue ratio of approximately 2.3% in 2024Q4, suggesting that the firm's cash flow challenges are not driven by excessive investment in physical assets but rather by operational and working capital pressures.
While the capital intensity remains low, the fact that even modest maintenance capex is contributing to negative free cash flow highlights the fragility of the company's operating margins. The firm appears to be an asset-light operator, yet it still struggles to generate surplus cash, which points to fundamental issues in cost control.
Quick answers to the most common questions about buying THH stock.
TryHard Holdings Limited (THH) generated $-1.3M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
TryHard Holdings Limited (THH) reported negative free cash flow of $1.69B in 2024, indicating capital requirements exceeded cash from operations.
TryHard Holdings Limited (THH) spent $319.9M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.