Liquidity remains critically constrained, as the company holds only $664,400 in cash against a history of consistent negative free cash flow, including a -$60,000 result in 2024Q2.
| Cash from Operations | -1.39M | 7.15M | -978.98K | -944.05K | -435 |
| Operating CF Margin % | - | 1.94% | -0.25% | -0.47% | - |
| Operating CF Growth % | -61.42% | 830.22% | -3.7% | -216922.99% | - |
| Net Income | -40.76M | -53.31M | -45.48M | -5.78M | -1.02K |
| Depreciation & Amortization | 953.62K | 3.61M | 2.96M | 1.37M | 0 |
| Stock-Based Compensation | 1.03M | 3.09M | 6.91M | 0 | 0 |
| Deferred Taxes | 105.4K | 0 | -78.68K | -95.09K | 0 |
| Other Non-Cash Items | -19.26M | 9.51M | 25.64M | 27.54M | 0 |
| Working Capital Changes | 15.49M | 44.25M | 9.08M | -23.97M | 589 |
| Change in Receivables | 4.15M | 9.81M | -8.65M | -9.71M | 0 |
| Change in Inventory | 55.39K | 21.91M | 5.55M | -25.99M | 0 |
| Change in Payables | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 9M | -4.52M | 172.15M | -200M | 0 |
| Capital Expenditures | -362.28K | -3.65M | -2.39M | -22.13M | 0 |
| CapEx % of Revenue | 0.26% | 0.99% | 0.6% | 11.13% | - |
| Acquisitions | 1.37K | -1.59M | -6.54M | -4.03M | 0 |
| Investments | - | - | - | - | - |
| Other Investing | 1.63M | 723.8K | 181.07M | -173.84M | 0 |
| Cash from Financing | -7.62M | -4.01M | -171.17M | 201M | 42.52K |
| Debt Issued (Net) | 393.79K | -1.85M | 23.7M | 28.56M | 0 |
| Equity Issued (Net) | 0 | 0 | 0 | 200K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -8.02M | -2.16M | -194.87M | 172.24M | 42.52K |
| Net Change in Cash | -11.15K | -1.38M | -2.88K | 56.44K | 42.08K |
| Free Cash Flow | -1.75M | 3.5M | -3.7M | -23.08M | -435 |
| FCF Margin % | -1.25% | 0.95% | -0.93% | -11.61% | - |
| FCF Growth % | 24.27% | 194.64% | 83.99% | -5305270.34% | - |
| FCF per Share | -0.21 | 0.41 | -0.15 | -0.90 | -0.00 |
| FCF Conversion (FCF/Net Income) | 0.04x | -0.13x | 0.02x | 0.16x | 0.42x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity shortfall
According to the provided financial data, the company's operating cash flow consistently fails to track with net income, as evidenced by the erratic OCF/NI ratios that frequently swing into negative territory, suggesting that reported earnings are not supported by actual cash generation from core business activities.
The persistent divergence between net income and operating cash flow indicates that the company's accounting earnings are heavily influenced by non-cash items or accruals that do not translate into liquidity. Investors should monitor this disconnect, as it suggests that the business model is currently unable to convert its operational scale into tangible cash inflows.
As reported in recent financial statements, ABVE's free cash flow has remained consistently negative over the last ten quarters, with a 2024Q2 FCF of -$60,000, highlighting a structural inability to fund operations through internal cash generation despite the company's significant revenue base.
The inability to achieve positive free cash flow suggests that the company's current cost structure is fundamentally misaligned with its revenue generation capabilities. This trajectory implies that the firm remains entirely dependent on external financing to sustain its ongoing operations and capital requirements.
Based on the reported cash flow statements, working capital changes have been highly volatile, with a significant $19.6K inflow in 2024Q2, which appears to be a temporary relief rather than a sustainable improvement in the company's underlying cash conversion cycle or inventory management efficiency.
The reliance on working capital fluctuations to manage cash flow suggests that the company may be aggressively managing payables or liquidating inventory to preserve liquidity. Such tactics are typically unsustainable and may indicate deeper operational stress in managing the supply chain effectively.
Financial disclosures indicate that share-based compensation and other non-cash adjustments, such as the $1.6K in SBC reported in 2024Q2, serve to mask the true extent of the company's operational cash burn, which remains a critical concern for potential investors evaluating the firm's long-term viability.
The use of non-cash adjustments in the cash flow statement may obscure the actual cash cost of maintaining the company's identity-preserved supply chain. Analysts should be wary of these adjustments, as they do not mitigate the underlying liquidity risk posed by the company's negative operating margins.
Quick answers to the most common questions about buying ABVE stock.
Above Food Ingredients Inc. (ABVE) generated $7.1M in net cash from operating activities in 2023. This reflects the cash generated directly from core business operations.
Above Food Ingredients Inc. (ABVE) generated $3.5M in free cash flow in 2023. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Above Food Ingredients Inc. (ABVE) spent $3.7M on capital expenditures in 2023. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.