Utah Medical Products, Inc. (UTMD) Cash Flow Statement

The ratio fell to 0.51 in 2026Q2 and 0.80 in 2024Q2, while reaching 1.47 in 2025Q1 and 2025Q3, which suggests working capital timing and non-cash charges are driving much of the quarter-to-quarter variance. Net income itself has been relatively flat near $2.6M to $3.6M, so the swings appear to originate on the cash side rather than from earnings volatility. Investors should monitor whether the sub-1.0 readings represent timing effects that reverse or a more persistent drag on earnings quality.

Free cash flow has been highly uneven, with the 2025Q1 peak of $4.3M contrasting sharply with the $1.2M reported in 2026Q2. Because capital expenditures have been minimal, the volatility appears driven primarily by operating cash flow rather than investment intensity. The downward trajectory into 2026 warrants further investigation alongside the revenue contraction noted in the income statement analysis.

Large working capital outflows in 2026Q2 and 2024Q2 align with the lower operating cash flow readings in those periods, suggesting receivables, inventory, or payables movements are absorbing cash. The pattern is consistent with a business whose cash generation depends on timing rather than steady collections. Management's working capital efficiency cannot be fully assessed from the supplied data, so this interpretation should be treated as provisional.

Combined dividends and buybacks have at times been several times the quarterly free cash flow, with 2024Q4 and 2024Q2 showing particularly large repurchase outflows relative to cash generated. Such deployment may be sustainable only if cash reserves are adequate, and the supplied data does not fully disclose the balance sheet cushion available. The gap raises questions about the durability of capital returns if operating cash flow remains below its 2025 levels.