Historical cash flow remains volatile, highlighted by a significant $943.9 million stock-based compensation expense in 2024Q2 that complicates the assessment of underlying cash generation.
| Cash from Operations | 0 | 3.2B | 2.28B | -3.52B | 630.18M | 415.47M |
| Operating CF Margin % | - | 4.21% | 4.4% | -11.05% | 9.65% | 13.04% |
| Operating CF Growth % | 0% | 40.61% | 164.57% | -659.14% | 51.68% | - |
| Net Income | -3.33B | -5.79B | -8.26B | -7.66B | -4.36B | 103.6M |
| Depreciation & Amortization | 0 | 944.98M | 618.19M | 239.11M | 89.84M | 69.24M |
| Stock-Based Compensation | 282.93M | 1.08B | 135.65M | 211.21M | 150.57M | 0 |
| Deferred Taxes | 0 | -204.66M | -39.23M | 33.17M | -9.99M | 0 |
| Other Non-Cash Items | 3.05B | -768.19M | -67.53M | 90.13M | -13.16M | -83.99M |
| Working Capital Changes | 0 | 7.94B | 9.89B | 3.56B | 4.78B | 326.62M |
| Change in Receivables | 0 | -375.63M | -311.91M | -377.59M | -201.37M | 141.44M |
| Change in Inventory | 0 | 1.08B | -291.3M | -289.7M | -158.16M | 168.21K |
| Change in Payables | 0 | -32.41M | 41.2M | 317.72M | 197.65M | -3.34M |
| Cash from Investing | 0 | -923.89M | -1.96B | -2.01B | 379.52M | -877.61M |
| Capital Expenditures | 0 | -1.28B | -1.57B | -136.55M | -117.04M | -122.79M |
| CapEx % of Revenue | 0% | 1.69% | 3.04% | 0.43% | 1.79% | 3.86% |
| Acquisitions | 0 | 0 | 0 | -101.65M | -227.22M | 150.13M |
| Investments | - | - | - | - | - | - |
| Other Investing | 0 | -175.15M | -390.01M | -1.7B | 694.91M | -868.81M |
| Cash from Financing | 0 | 2.62B | -2.68M | 5.37B | 2.79B | 92.17M |
| Debt Issued (Net) | 0 | -655.52M | -5.38B | 4.1B | 370.44M | -222.8M |
| Equity Issued (Net) | 0 | 1000K | 1000K | 1000K | 1000K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | -1.81B | 0 |
| Share Repurchases | 0 | -186.75M | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 0 | 292.33M | 314.97M |
| Net Change in Cash | 0 | 4.86B | 349.85M | -143.06M | 3.76B | -356.22M |
| Free Cash Flow | 0 | 1.48B | 361.93M | -1.04B | -97.93M | -59.23M |
| FCF Margin % | 0% | 1.95% | 0.7% | -3.27% | -1.5% | -1.86% |
| FCF Growth % | 100% | 309.97% | 134.67% | -966% | -65.33% | - |
| FCF per Share | 0.00 | 6.31 | 1.81 | -4.28 | -0.65 | -0.30 |
| FCF Conversion (FCF/Net Income) | -0.00x | -0.50x | -0.27x | 0.44x | -0.14x | 4.01x |
| Interest Paid | 0 | 179.57M | 209.57M | 60.81M | 45.77M | 199.2M |
| Taxes Paid | 0 | 494.7M | 120.08M | 80.34M | 56.05M | 261.35M |
Capital Intensity and Dilution
As reported in historical financial filings, ZK's operating cash flow to net income ratio of 0.23 in 2023Q4 highlights a significant disconnect between accounting losses and actual cash generation, suggesting that reported earnings are currently poor proxies for the company's underlying ability to self-fund its operations.
The substantial gap between net income and operating cash flow indicates that non-cash charges and working capital adjustments are heavily influencing the bottom line. Investors should monitor whether this conversion improves as the company scales, as persistent reliance on non-cash accounting to bridge the gap may signal underlying operational inefficiencies.
Based on historical data from 2023Q4, ZK's capital expenditure reached $778.2 million, representing a 4.8% capital intensity ratio relative to revenue, which underscores the heavy upfront investment required to maintain its premium manufacturing footprint within the Geely ecosystem.
This level of capital intensity is typical for an emerging EV manufacturer, yet it places significant pressure on liquidity. The company's ability to eventually transition from growth-oriented capex to maintenance-level spending will be a critical determinant of its long-term free cash flow profile.
According to the 2023Q4 cash flow statement, ZK recorded a $2.7 billion working capital inflow, a figure that appears to be a significant outlier compared to previous periods and warrants further investigation into the sustainability of such collection or payables management cycles.
Such large swings in working capital often mask the true cash-generating capability of the core business. Analysts should scrutinize whether this inflow resulted from aggressive inventory liquidation or favorable changes in supplier payment terms, as these are not necessarily repeatable sources of liquidity.
As disclosed in recent financial statements, ZK's stock-based compensation reached $943.9 million in 2024Q2, a substantial non-cash expense that effectively dilutes shareholders while masking the true cash cost of talent acquisition and retention in a highly competitive automotive technology labor market.
While SBC is a standard tool for preserving cash in growth-stage companies, the magnitude of these adjustments suggests that the company's reported cash flow figures may be flattered by these non-cash add-backs. Investors should consider the long-term impact of this dilution on earnings per share as the company matures.
Quick answers to the most common questions about buying ZK stock.
ZEEKR Intelligent Technology Holding Limited (ZK) generated $3.20B in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
ZEEKR Intelligent Technology Holding Limited (ZK) generated $1.48B 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.
ZEEKR Intelligent Technology Holding Limited (ZK) spent $1.28B on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2024, ZEEKR Intelligent Technology Holding Limited (ZK) spent $186.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.