Operating cash flow remains volatile, evidenced by an OCF/NI ratio of 2.01, while capital intensity remains negligible with a CapEx/Revenue ratio of 0.0%.
| Cash from Operations | 596.34M | 532.9M | 88.56M | -238.16M | 58.16M | -66.96M | 143.96M | 99.45M | 108.06M |
| Operating CF Margin % | - | 98.34% | 15.13% | -34.91% | 6.23% | -8.74% | 45.1% | 44.15% | 56.27% |
| Operating CF Growth % | 710.63% | 501.74% | 137.19% | -509.48% | 186.86% | -146.51% | 44.75% | -7.96% | - |
| Net Income | 170.28M | 103.34M | -510.37M | -376.82M | -254.39M | -144.96M | 102.2M | 89.22M | 73.34M |
| Depreciation & Amortization | 8.46M | 7.02M | 2.24M | 12.23M | 19.71M | 14.79M | 13.88M | 13.54M | 12.78M |
| Stock-Based Compensation | 22.19M | 0 | 55.66M | 6.45M | 10.58M | 191.42M | 0 | 0 | 0 |
| Deferred Taxes | 0 | 547.5K | -2.67M | -3.76M | -3.02M | -1.58M | -1.52M | -1.54M | -1.47M |
| Other Non-Cash Items | 72.8M | 90.43M | 256.6M | 129.93M | 275.02M | -2.9M | 13.12M | 5.12M | 4.19M |
| Working Capital Changes | 322.62M | 331.57M | 287.1M | -6.19M | 10.26M | -123.73M | 16.26M | -6.59M | 19.53M |
| Change in Receivables | -2.43M | -8.88M | 80.55M | -3.87M | 9.38M | -110.62M | 9.06M | -11.29M | -2.18M |
| Change in Inventory | 0 | 0 | 2.4M | 4.65M | -20.84M | -1.86M | -4.13M | 5.53M | 7.65M |
| Change in Payables | 0 | -2.31M | 4.87M | -2.37M | 5.55M | -2.1M | 5.66M | 7.71M | 17.13M |
| Cash from Investing | -559.39M | -416.77M | -304.74M | -90.25M | -237.67M | -228.13M | -126.48M | -98.6M | -118.36M |
| Capital Expenditures | -30.3K | -28.64K | -68.07M | -1.11M | -25.17M | -484.77K | -196K | -46.57K | -1.96M |
| CapEx % of Revenue | 0.01% | 0.01% | 11.63% | 0.16% | 2.7% | 0.06% | 0.06% | 0.02% | 1.02% |
| Acquisitions | 0 | 0 | 0 | 999.03K | -35.18M | -95.48M | -122.43M | -98.9M | -116.51M |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -559.36M | 0 | 0 | 53.92M | -177.79M | 0 | -3.85M | 350K | 267.32K |
| Cash from Financing | 1.44B | 667.6M | 3.86M | 108.86M | 579.41M | 562.64M | -40.97M | 137.49M | -3.8M |
| Debt Issued (Net) | 0 | 647M | 3.86M | -30.12M | -12.25M | -16.11M | 88.5M | -244.01K | -33.8M |
| Equity Issued (Net) | 0 | 0 | 0 | 138.97M | 508.13M | 572.81M | 0 | 137.74M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 1.44B | 20.61M | 0 | 0 | 83.53M | 5.94M | -129.47M | 0 | 30M |
| Net Change in Cash | -502.71M | 732.34M | -234.61M | -179.57M | 384.24M | 239.06M | -22.9M | 139.29M | -14.34M |
| Free Cash Flow | 596.31M | 532.88M | 20.49M | -239.26M | 33M | -67.45M | 143.76M | 99.41M | 106.09M |
| FCF Margin % | 135.73% | 98.33% | 3.5% | -35.07% | 3.53% | -8.8% | 45.04% | 44.13% | 55.25% |
| FCF Growth % | 240.72% | 2500.4% | 108.56% | -825.15% | 148.92% | -146.92% | 44.62% | -6.3% | - |
| FCF per Share | 25.49 | 10.85 | 0.23 | -2.78 | 0.40 | -1.04 | 2.42 | 1.68 | 1.80 |
| FCF Conversion (FCF/Net Income) | 3.50x | 7.44x | -0.21x | 0.67x | -0.25x | 0.44x | 1.41x | 1.11x | 1.47x |
| Interest Paid | 1.13M | 759.48K | 736.03K | 20.12K | 113.13K | 122.63K | 0 | 0 | 0 |
| Taxes Paid | 0 | 464.51K | 241.35K | 1.25M | 4.38M | 4.95M | 4.58M | 2.3M | 2.13M |
Working capital volatility risks
According to recent financial disclosures, WiMi's operating cash flow frequently decouples from net income, with OCF/NI ratios reaching as high as 19.60 in 2024Q2, suggesting that reported earnings are heavily influenced by non-cash accruals rather than consistent, high-quality cash generation from core holographic advertising operations.
The extreme volatility in the OCF/NI ratio indicates that cash flow is not tracking linearly with accounting profits, which warrants caution regarding the sustainability of reported earnings. Investors should monitor whether these accruals represent genuine receivables or accounting adjustments that may not translate into long-term liquidity.
As reported in financial statements, working capital changes have been the primary driver of cash flow fluctuations, with a massive $282.7 million inflow recorded in 2023Q4, indicating that the company's cash position is highly sensitive to the timing of collections and payables management cycles.
The reliance on working capital swings to bolster cash flow suggests that operational efficiency is inconsistent and potentially subject to lumpy revenue recognition patterns. This pattern may imply that the company is struggling to maintain a predictable cash conversion cycle, making short-term liquidity projections difficult to model.
Based on the provided data, WiMi maintains an exceptionally low capital intensity, with CapEx/Revenue ratios consistently near 0.0% in recent quarters, suggesting that the company's current business model requires negligible reinvestment in physical assets to support its holographic content and semiconductor-related service offerings.
While low capital intensity typically supports free cash flow, it may also indicate a lack of investment in the underlying infrastructure necessary to scale the business effectively. The absence of significant maintenance or growth CapEx raises questions about the long-term durability of the company's proprietary technology stack.
As indicated by recent filings, stock-based compensation has been a significant non-cash expense, peaking at $186.2 million in 2023Q4, which effectively obscures the true economic cost of talent acquisition and potentially dilutes the value of cash flow generated from operations for existing shareholders.
The heavy reliance on equity-based compensation suggests that the company may be using stock to preserve cash, which masks the true operational burn rate. Analysts should adjust cash flow metrics to account for these recurring equity grants to better understand the company's actual ability to self-fund.
Quick answers to the most common questions about buying WIMI stock.
WiMi Hologram Cloud Inc. (WIMI) generated $532.9M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
WiMi Hologram Cloud Inc. (WIMI) generated $532.9M 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.
WiMi Hologram Cloud Inc. (WIMI) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.