Free cash flow remains highly erratic, swinging from a negative $20.3M in 2024Q2 to a positive $118.4M in 2024Q4, primarily due to unpredictable working capital movements.
| Cash from Operations | 99.6M | 5.28M | -1.34M | 27.91M | 3.5M |
| Operating CF Margin % | 80.07% | 5.82% | -3.78% | 58.79% | 100.15% |
| Operating CF Growth % | 1785.14% | 493.33% | -104.81% | 696.44% | - |
| Net Income | 34.36M | 32.6M | 13.72M | 27.06M | 2.62M |
| Depreciation & Amortization | 1.99M | 742.95K | 467.62K | 55.23K | 0 |
| Stock-Based Compensation | 8.45M | 4.45M | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 19.19M | 1.08M | -1.1M | 2.07M | 837.19K |
| Working Capital Changes | 35.61M | -33.59M | -14.43M | -1.28M | 49.77K |
| Change in Receivables | 14.63M | -51.16M | -14.32M | -5.73M | 51.9K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 | 0 | -2.13K |
| Cash from Investing | -217.46M | -18.24M | 1.13M | -7.56M | 0 |
| Capital Expenditures | -1.46M | -1.99M | -1.67M | -105.46K | 0 |
| CapEx % of Revenue | 1.18% | 2.19% | 4.69% | 0.22% | 0% |
| Acquisitions | 0 | 0 | 0 | 255.9K | 0 |
| Investments | - | - | - | - | - |
| Other Investing | -10.22M | -104.27K | 17.61K | 1.57K | 0 |
| Cash from Financing | 154.36M | 13.6M | 1.09M | -17.47M | -3.11M |
| Debt Issued (Net) | -826.2K | -545.99K | -325.35K | 849.59K | 0 |
| Equity Issued (Net) | 156.53M | 17.46M | 12.91M | 0 | 0 |
| Dividends Paid | 0 | -476.41K | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1.34M | -2.83M | -11.49M | -18.32M | -3.11M |
| Net Change in Cash | 31.58M | 641.28K | 873.05K | 2.69M | 431.64K |
| Free Cash Flow | 87.9M | 3.18M | -3.01M | 27.61M | 3.5M |
| FCF Margin % | 70.66% | 3.5% | -8.47% | 58.16% | 100.15% |
| FCF Growth % | 2663.77% | 205.58% | -110.91% | 687.93% | - |
| FCF per Share | 611.03 | 2459.66 | -2384.93 | 21862.85 | 2801.32 |
| FCF Conversion (FCF/Net Income) | 2.83x | 0.15x | -0.06x | 1.37x | 1.34x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 |
High cash flow volatility
As reported in financial statements, VCI Global's operating cash flow frequently decouples from net income, evidenced by a 2024Q2 period where the company reported $27.9M in net income while simultaneously suffering a $19.5M cash outflow, highlighting significant challenges in converting accounting profits into realized liquidity.
The persistent gap between net income and operating cash flow suggests that earnings are heavily reliant on non-cash accruals or delayed collections. Investors should monitor whether this disconnect stems from aggressive revenue recognition policies or structural delays in the billing cycle for listing mandates.
Based on historical data, VCI Global's free cash flow trajectory is highly inconsistent, swinging from a negative $20.3M in 2024Q2 to a positive $118.4M in 2024Q4, which indicates that the firm's cash generation is subject to extreme, project-based lumpiness rather than steady operational performance.
This volatility makes it difficult to forecast sustainable cash generation, as the firm's FCF margins appear tethered to the timing of specific deal closures. The lack of a predictable cash flow trend warrants caution regarding the company's ability to fund long-term growth without external capital or cash reserves.
According to recent SEC filings, working capital movements are the primary determinant of cash flow, with a massive $68.4M inflow in 2024Q4 contrasting sharply with a $53.7M outflow in 2024Q2, suggesting that the firm's liquidity is highly sensitive to the timing of client payments and receivables.
The dramatic shifts in working capital suggest that the company's cash position is vulnerable to the payment cycles of its SME client base. Such fluctuations imply that the firm may be acting as a bridge for client liquidity, which introduces significant counterparty risk into the cash flow profile.
As indicated by the cash flow statement, the company's reported figures are significantly impacted by stock-based compensation, which reached $5.7M in 2024Q4, effectively masking the true cash cost of talent acquisition and potentially inflating the perceived quality of operating cash flow for the period.
The reliance on equity-based compensation to manage cash outflows suggests that the firm may be attempting to preserve liquidity at the expense of shareholder dilution. Analysts should investigate whether this trend is a permanent feature of the compensation structure or a temporary measure to offset operational cash shortfalls.
Quick answers to the most common questions about buying VCIG stock.
VCI Global Limited (VCIG) generated $99.6M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
VCI Global Limited (VCIG) generated $87.9M 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.
VCI Global Limited (VCIG) spent $1.5M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.