Investment Thesis
Air T Inc exhibits severe financial distress with negative stockholders' equity of -1.2M, indicating the company is technically insolvent. The company is burning cash with negative operating cash flow of -25.0M and negative free cash flow of -26.2M, while generating minimal profitability with only 0.1% net margin on $206.2M revenue. With an interest coverage ratio of 0.3x and current ratio of 0.96x, the company lacks the financial capacity to service its $194.2M long-term debt and maintain operations.
Strengths
- Maintains $37.4M in cash reserves providing near-term liquidity buffer
- Generates positive operating income of $2.6M despite revenue challenges
- Established market position in air courier services sector
Risks
- Negative stockholders' equity indicates technical insolvency and structural balance sheet failure
- Negative operating cash flow of -25.0M demonstrates inability to fund operations from core business
- Debt service unsustainable with interest coverage ratio of only 0.3x against $194.2M long-term debt
- Negative free cash flow of -26.2M accelerates depletion of cash reserves at current burn rate
- Extremely thin net margin of 0.1% provides no cushion for operational disruptions
- Current ratio of 0.96x indicates imminent liquidity crisis within 12 months
Key Metrics to Watch
- Operating cash flow trend - critical to assess if cash burn reverses
- Stockholders equity trajectory - monitor if negative equity continues deteriorating
- Cash reserves depletion rate - assess runway given -25.0M annual OCF burn
- Debt restructuring announcements - likely necessity given inability to service debt
- Revenue stability - determine if $206.2M baseline can be maintained
Financial Metrics
Revenue
206.2M
Net Income
268.0K
EPS (Diluted)
$0.10
Free Cash Flow
-26.2M
Total Assets
381.8M
Cash
37.4M
Profitability Ratios
Gross Margin
N/A
Operating Margin
1.2%
Net Margin
0.1%
ROE
N/A
ROA
0.1%
FCF Margin
-12.7%
Balance Sheet & Liquidity
Current Ratio
0.96x
Quick Ratio
0.57x
Debt/Equity
N/A
Debt/Assets
98.5%
Interest Coverage
0.31x
Long-term Debt
194.2M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-19T18:29:24.591184 |
Data as of: 2025-12-31 |
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