Cash flow quality is highly erratic, highlighted by an operating cash flow to net income ratio of -0.90 in 2024Q4 and a questionable $1.3 million dividend payment despite a $1.7 million net loss.
| Cash from Operations | 4.28M | 4.44M | 2.67M | 1.61M | -2.06M | 3.12M | 3.02M |
| Operating CF Margin % | - | 7.6% | 4.57% | 2.71% | -4% | 7.23% | 6.18% |
| Operating CF Growth % | 784.97% | 66.52% | 65.24% | 178.5% | -165.83% | 3.34% | - |
| Net Income | 1.62M | -397K | 8K | 1.63M | 1.53M | 1.37M | 972K |
| Depreciation & Amortization | 1.04M | 817K | 573K | 471K | 256K | 238K | 523K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 772K | 812K | 918K | 482K | 244K | 28K | 191K |
| Working Capital Changes | 842K | 3.21M | 1.17M | -968K | -4.08M | 1.49M | 1.34M |
| Change in Receivables | 1.01M | 3.19M | -691K | 1.7M | -4.1M | 1.72M | 3.6M |
| Change in Inventory | 839K | 838K | 844K | -5K | -3.52M | 126K | -949K |
| Change in Payables | 0 | 367K | 0 | 0 | 3.12M | -169K | 589K |
| Cash from Investing | -1.23M | -10K | -774K | -455K | -283K | -30K | -222K |
| Capital Expenditures | -1.23M | -10K | -774K | -455K | -283K | -32K | -230K |
| CapEx % of Revenue | 1.04% | 0.02% | 1.33% | 0.76% | 0.55% | 0.07% | 0.47% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 2K | 8K |
| Cash from Financing | -2.12M | -5.46M | -568K | -1.55M | 2.14M | -4.06M | -2.25M |
| Debt Issued (Net) | 2.68M | -5.46M | 2.68M | -1.55M | 2.14M | -4.37M | -2.46M |
| Equity Issued (Net) | 5.94M | 0 | 5.94M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -10.73M | 0 | -9.19M | 0 | 0 | 312K | 206K |
| Net Change in Cash | -267K | -714K | 1.06M | -300K | -170K | -1.26M | 826K |
| Free Cash Flow | 3.05M | 4.43M | 1.89M | 1.16M | -2.34M | 3.09M | 2.79M |
| FCF Margin % | 2.59% | 7.58% | 3.25% | 1.95% | -4.55% | 7.15% | 5.71% |
| FCF Growth % | 305.85% | 134.07% | 63.33% | 149.55% | -175.67% | 10.71% | - |
| FCF per Share | 0.34 | 0.31 | 0.21 | 0.13 | -0.27 | 0.33 | 0.30 |
| FCF Conversion (FCF/Net Income) | 1.88x | -11.19x | 333.38x | 1.04x | -1.42x | 2.28x | 3.11x |
| Interest Paid | 2.29M | 1.34M | 1.25M | 1.03M | 634K | 540K | 773K |
| Taxes Paid | 337K | 206K | 337K | 375K | 57K | 30K | 44K |
Inconsistent cash conversion cycles
As reported in recent financial filings, INEO's operating cash flow to net income ratio has fluctuated wildly, reaching a low of -0.90 in 2024Q4, which suggests that reported earnings are frequently decoupled from the actual cash generated by the company's core industrial manufacturing operations.
The significant divergence between net income and operating cash flow indicates that accruals and non-cash adjustments are playing an outsized role in the company's bottom line. Investors should monitor this trend closely, as the inability to consistently convert accounting profits into cash suggests a potential weakness in the underlying quality of earnings.
Based on the provided quarterly data, INEO's free cash flow margins have oscillated between -4.9% and 12.4% over the last ten quarters, highlighting a lack of predictable cash generation that complicates the company's ability to fund operations without relying on external financing or working capital shifts.
The erratic nature of free cash flow suggests that the company's business model is highly sensitive to timing differences in production and sales cycles. This volatility makes it difficult to project long-term value creation, as the company appears unable to sustain positive cash flow generation across varying industrial demand environments.
According to historical cash flow statements, INEO has experienced massive swings in working capital, including a $1.8 million inflow in 2024Q4 and a $4.7 million outflow in 2022Q4, which suggests that the company's cash position is heavily dependent on the timing of inventory and receivables management.
These dramatic fluctuations in working capital indicate that the company may be struggling to manage its supply chain and customer payment cycles effectively. Such instability often masks the true operational health of the business, as cash flow is frequently driven by balance sheet adjustments rather than sustainable sales growth.
As evidenced by the company's financial statements, INEO has prioritized dividend payments of $1.3 million in 2024Q4 despite reporting a net loss of $1.7 million, a move that appears to prioritize shareholder returns over the preservation of the company's limited $1.06 million cash reserve.
This capital allocation strategy warrants further investigation, as it may indicate a lack of viable internal investment opportunities or a management focus that is misaligned with the company's current liquidity constraints. The decision to pay dividends while burning cash suggests that the company's financial flexibility is rapidly diminishing.
Quick answers to the most common questions about buying INEO stock.
INNEOVA Holdings Ltd (INEO) generated $4.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
INNEOVA Holdings Ltd (INEO) generated $4.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
INNEOVA Holdings Ltd (INEO) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.