Cash generation is currently strained, as evidenced by a negative $4.2 million free cash flow in 2025Q4 and an operating cash flow to net income ratio of only 0.27.
| Cash from Operations | 2.9M | -1.21M | 3.11M | 1.58M | 5.84M | 2.5M | -1.33M | -2.39M |
| Operating CF Margin % | 14.04% | -5.14% | 15.67% | 8.24% | 28.14% | 15.46% | -6.51% | -11.45% |
| Operating CF Growth % | 340.5% | -138.86% | 96.53% | -72.95% | 133.43% | 288.85% | 44.64% | - |
| Net Income | 1.38M | 3.42M | 2.88M | 2.71M | 2.63M | 2.21M | 3.65M | 3.68M |
| Depreciation & Amortization | 350.68K | 346.13K | 225.9K | 362.6K | 346.61K | 329.91K | 344.04K | 368.26K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -22.07K | 36.33K | 89.6K | -86.02K | -1.66K | -77.92K | -30.36K | 0 |
| Other Non-Cash Items | 97.98K | -89.93K | 113.48K | 28.94K | -91.31K | 80.05K | 5.47M | 569.69K |
| Working Capital Changes | 1.1M | -4.92M | -200.81K | -1.43M | 2.96M | -34.86K | -5.32M | -7.01M |
| Change in Receivables | 2.27M | -3.91M | -376.08K | 333.66K | 3.08M | 1.12M | -2.21M | -3.97M |
| Change in Inventory | 168.29K | 80.31K | 1.56M | -504.39K | 458.61K | -1.37M | 248.34K | -1.77M |
| Change in Payables | 287.04K | -499.57K | -646.89K | -810.34K | -369.08K | 425.9K | -2.79M | 0 |
| Cash from Investing | -10.79M | -9.51M | -7.73M | -120.9K | -1.07M | -1.96M | 126.94K | 1.96M |
| Capital Expenditures | -6.63M | -144.95K | -113.94K | -40.17K | -42.88K | -142.32K | -73.33K | -187.68K |
| CapEx % of Revenue | 32.05% | 0.62% | 0.57% | 0.21% | 0.21% | 0.88% | 0.36% | 0.9% |
| Acquisitions | -500K | 0 | 0 | 0 | 0 | 207 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 444 | -978.93K | 10.14K | 364.43K | -215.03K | -2.1M | 54.85K | 2.15M |
| Cash from Financing | 7.35M | 11.65M | 6.91M | 121.86K | -2.87M | -343.91K | 2.36M | -3.19M |
| Debt Issued (Net) | 7.59M | 6.87M | 4.25M | 0 | -2.77M | -355.32K | 0 | 0 |
| Equity Issued (Net) | 0 | 312K | 8M | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -237.88K | 4.48M | -5.34M | 121.86K | -103.88K | 11.42K | 2.36M | -3.19M |
| Net Change in Cash | -674.55K | 1.21M | 2.14M | 1.12M | 2.01M | -278.44K | 1.09M | -3.59M |
| Free Cash Flow | -3.73M | -2.33M | 2.99M | 1.54M | 5.8M | 2.36M | -1.4M | -2.58M |
| FCF Margin % | -18.01% | -9.92% | 15.1% | 8.03% | 27.93% | 14.58% | -6.87% | -12.35% |
| FCF Growth % | -59.82% | -177.91% | 94.25% | -73.44% | 145.69% | 268.78% | 45.82% | - |
| FCF per Share | -0.48 | -0.30 | 0.41 | 0.23 | 0.43 | 0.12 | -0.07 | -0.13 |
| FCF Conversion (FCF/Net Income) | 2.44x | -0.33x | 1.08x | 0.58x | 2.22x | 1.13x | -0.36x | -0.65x |
| Interest Paid | 411.07K | 239.37K | 5.32K | 0 | 68.78K | 136.55K | 0 | 0 |
| Taxes Paid | 564.79K | 205.37K | 142.73K | 47.44K | 302.25K | 522.11K | 0 | 0 |
Export market demand volatility
As reported in recent financial statements, ZJYL's operating cash flow to net income ratio has exhibited extreme volatility, dropping to 0.27 in 2025Q4, which indicates a significant disconnect between accounting profits and the actual cash generated from the company's core manufacturing operations during the period.
The persistent gap between net income and operating cash flow suggests that reported earnings are heavily influenced by non-cash accruals or timing differences in revenue recognition. Investors should monitor whether this divergence reflects aggressive accounting practices or simply the inherent difficulty in collecting receivables from international distributors.
Based on the provided cash flow data, ZJYL's free cash flow trajectory has been highly erratic, swinging from a positive $2.7 million in 2023Q2 to a negative $4.2 million in 2025Q4, reflecting the company's inability to maintain consistent cash generation amidst declining revenue trends.
The negative free cash flow in recent periods appears to be driven by both operational weakness and a sudden spike in capital expenditures. This inconsistency suggests that the company lacks a predictable cash engine, making it difficult to fund future growth without potentially tapping into its existing cash reserves.
According to the latest quarterly figures, ZJYL's capital expenditure reached $4.6 million in 2025Q4, representing a capital intensity of 42.4% of revenue, which marks a sharp departure from the historically low maintenance-level spending observed in previous fiscal periods.
This sudden surge in capital investment warrants further investigation, as it may indicate a shift toward capacity expansion or a necessary upgrade to aging manufacturing equipment. Given the company's strained operating margins, such high capital intensity may place significant pressure on liquidity if these investments do not yield immediate productivity gains.
As evidenced by the 2025Q4 data, ZJYL experienced a $1.3 million outflow from working capital, which, when combined with previous periods of volatility, suggests that the company's cash conversion cycle is highly sensitive to fluctuations in inventory management and distributor payment patterns.
The frequent shifts between positive and negative working capital changes indicate that the company may be struggling to optimize its inventory levels or effectively manage its accounts receivable. This instability in working capital management appears to be a primary driver of the company's inconsistent operating cash flow performance.
Quick answers to the most common questions about buying ZJYL stock.
Jin Medical International Ltd. (ZJYL) generated $2.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Jin Medical International Ltd. (ZJYL) reported negative free cash flow of $3.7M in 2025, indicating capital requirements exceeded cash from operations.
Jin Medical International Ltd. (ZJYL) spent $6.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.