Great Ajax Corp. Reports Mixed Financial Results for Q2 2024, Positive Trends in Profit but Declining Sales and Cash Flow
Great Ajax Corp., a real estate investment trust, recently announced its financial results for the quarter ending June 2024. The company has seen a negative performance in this quarter, with a pre-tax profit of USD -7.14 million, which is a 71.73% increase from the average net sales of the previous four periods. However, the near-term trend for pre-tax profit is positive.
Similarly, the net profit for the quarter was USD -6.25 million, showing a 75.31% increase from the average net sales of the previous four periods. The near-term trend for net profit is also positive. The company has been able to reduce its debt-to-equity ratio, which is currently at its lowest in the last five semi-annual periods. This indicates that the company is reducing its borrowing compared to equity capital.
On the other hand, there are some areas where Great Ajax Corp. needs to improve. The net sales for the quarter were USD 10.07 million, which is a significant decrease of -43.28% from the average net sales of the previous four periods. The near-term trend for sales is extremely negative. The company's operating cash flow has also been consistently falling in the last three years, with the lowest at USD -29.5 million in the current quarter.
Moreover, the company's dividend per share has also decreased to USD 5.89, which is the lowest in the last five years. This indicates that the company is distributing lower dividends to its shareholders compared to previous years. Additionally, the cost of raw materials has increased by 18.32% year-on-year, which may lead to a decrease in profit margin if the company is unable to pass on the cost to its customers.
Overall, Great Ajax Corp. has shown mixed financial results for the quarter ending June 2024. While there are some positive trends in terms of pre-tax and net profit, the company needs to address the declining sales and operating cash flow. Investors should carefully consider these factors before making any investment decisions.