Liquidity remains a critical concern as cash reserves have dwindled to $698,239, leaving the company with limited flexibility despite a $3.4M working capital inflow reported in 2024Q4.
| Cash from Operations | -2.59M | -10.08M | -3.95M | -23.78M | -890.21K | 1.12M | 3.8M | 1.93M |
| Operating CF Margin % | -6.41% | -11.33% | -6.23% | -137.01% | -4.74% | 3.8% | 13.74% | 9.38% |
| Operating CF Growth % | 74.27% | -154.92% | 83.38% | -2571.75% | -179.67% | -70.59% | 96.44% | - |
| Net Income | -6.19M | 365.09K | 1.9M | -938.41K | 782.3K | 1.64M | 2.85M | 1.24M |
| Depreciation & Amortization | 804.92K | 878.57K | 3.84M | 1.44M | 1.52M | 1.37M | 1.37M | 1.25M |
| Stock-Based Compensation | 0 | 0 | 0 | 251.74K | 64.89K | 8.8K | 70.4K | 108.03K |
| Deferred Taxes | 0 | -115.59K | -202.75K | -2.83K | -10.38K | 2.45K | 3.01K | -25.61K |
| Other Non-Cash Items | 5M | 1.66M | 1.71M | 55.64K | 124.4K | 176.39K | 217.93K | 103.48K |
| Working Capital Changes | -2.21M | -12.87M | -11.2M | -24.59M | -3.37M | -2.08M | -721.97K | -738.47K |
| Change in Receivables | 11.95M | -18.21M | -3.26M | 1.63M | 5.84M | -3.65M | -72.26K | -3.16M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 4K | 166.64K | 669.88K |
| Change in Payables | -13.88M | 11.12M | 4.21M | -874.84K | -240.89K | 741.83K | -803.36K | 443.38K |
| Cash from Investing | -580.36K | 89.95K | 2.73M | 1.28M | -156.03K | -917.29K | -16.51K | 506.45K |
| Capital Expenditures | -103.97K | 0 | -12.24K | -199.48K | -156.03K | -917.29K | -108.59K | -101.35K |
| CapEx % of Revenue | 0.26% | 0% | 0.02% | 1.15% | 0.83% | 3.12% | 0.39% | 0.49% |
| Acquisitions | -501.15K | 0 | 2.71M | 1.48M | 0 | 0 | 92.08K | 607.8K |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 24.76K | 89.95K | 24.91K | 0 | 0 | 0 | 92.08K | 607.8K |
| Cash from Financing | 491.08K | 8.55M | 793.26K | 16.66M | 12.31M | -788.77K | -3.3M | -2.7M |
| Debt Issued (Net) | -839.27K | 10.41M | 3.39M | -723.68K | 1.18M | -704.7K | -2.34M | -654.45K |
| Equity Issued (Net) | 1000K | 0 | 0 | 1000K | 1000K | 0 | 0 | -439.48K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | -3.63M | -439.48K |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | -3.63M | -439.48K |
| Other Financing | -669.64K | -1.86M | -2.6M | -1.08M | 175.92K | -84.07K | -956.82K | -1.17M |
| Net Change in Cash | -2.98M | -1.68M | -64.81K | -5.85M | 11.38M | -584.8K | 455.56K | -234.62K |
| Free Cash Flow | -2.7M | -10.08M | -3.97M | -23.98M | -1.05M | 200.11K | 3.69M | 1.83M |
| FCF Margin % | -6.67% | -11.33% | -6.24% | -138.16% | -5.57% | 0.68% | 13.35% | 8.89% |
| FCF Growth % | 73.24% | -154.13% | 83.46% | -2192.37% | -622.84% | -94.58% | 101.38% | - |
| FCF per Share | -0.50 | -3.14 | -0.19 | -1.26 | -0.11 | 0.02 | 0.31 | 0.15 |
| FCF Conversion (FCF/Net Income) | 0.42x | 1.05x | -2.09x | 25.35x | -1.14x | 0.68x | 1.33x | 1.56x |
| Interest Paid | 241.47K | 611.71K | 290.11K | 396.19K | 310.68K | 370.68K | 345.65K | 285.84K |
| Taxes Paid | 182.63K | 195.24K | 77.18K | 1.44M | 108.21K | 43.9K | 633.29K | 482.71K |
Severe liquidity and solvency risk
According to reported financial statements, YGMZ's OCF/NI ratio has fluctuated wildly, reaching 1.32 in 2024Q4, which suggests that reported net income is frequently decoupled from actual cash generation and heavily influenced by non-cash adjustments rather than sustainable operational performance.
The extreme variance in the relationship between net income and operating cash flow indicates that accruals and non-cash items are masking the underlying cash-burning nature of the business. Investors should monitor whether these adjustments are temporary accounting artifacts or a persistent attempt to smooth over structural operating losses.
As indicated by the provided cash flow data, YGMZ's free cash flow has remained consistently negative or highly unstable, with a -32.2% FCF margin in 2024Q2, highlighting the company's inability to generate self-sustaining cash flow to cover its capital requirements.
The persistent negative FCF trajectory suggests that the company is currently reliant on external financing or asset liquidation to fund its daily operations. This trend appears to confirm that the current business model is unable to scale effectively enough to cover its fixed cost base.
Based on the quarterly cash flow figures, YGMZ has experienced massive swings in working capital, including a $3.4M inflow in 2024Q4, which suggests that the company is aggressively managing its payables and receivables to artificially bolster its short-term cash position.
Such dramatic shifts in working capital often indicate that the company is delaying payments to subcontractors or accelerating collections to survive, which may not be sustainable in the long term. This behavior warrants further investigation into the company's relationship with its vendors and the health of its accounts receivable.
Data from the provided cash flow statements reveals a significant cumulative gap between reported net income and operating cash flow, suggesting that the company's accounting earnings have failed to translate into tangible cash reserves over the observed period.
This divergence implies that the company's reported profitability may be overstated due to accounting conventions that do not reflect the harsh reality of its cash-constrained operations. Analysts should be wary of relying on net income as a proxy for the company's true financial health.
Quick answers to the most common questions about buying YGMZ stock.
MingZhu Logistics Holdings Limited (YGMZ) generated $-2.6M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
MingZhu Logistics Holdings Limited (YGMZ) reported negative free cash flow of $2.7M in 2024, indicating capital requirements exceeded cash from operations.
MingZhu Logistics Holdings Limited (YGMZ) spent $0.1M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.