Sonoma Pharmaceuticals, Inc. Reports Mixed Financial Results for Quarter Ended Mar 2024
Sonoma Pharmaceuticals, Inc. has recently announced its financial results for the quarter ended Mar 2024. The company has reported a flat financial performance for the quarter, with a net profit of USD -1.93 million, which is higher than the preceding 12 month period ended Mar 2024. This is a positive sign for the company as it has already surpassed its net profit for the previous twelve months in just half a year.
One of the key highlights of the financial results is the company's highest operating cash flow of USD -2.4 million in the last three years. This indicates that Sonoma Pharmaceuticals, Inc. has generated higher cash revenues from its business operations. Additionally, the company's net sales have also reached a high of USD 3.44 million in the last five periods, showing a positive trend in the near term.
Another positive aspect of the financial results is the company's highest EPS (earnings per share) of USD -0.07 million in the last five periods. This indicates an increase in profitability and the company's ability to create higher earnings for its shareholders. Furthermore, the cost of raw materials has fallen by -11.02% (YoY), which shows that Sonoma Pharmaceuticals, Inc. has improved its ability to pass on the cost of raw materials to its customers, potentially leading to a rise in profit margin.
However, there are some areas that need improvement for Sonoma Pharmaceuticals, Inc. For instance, the company's operating profit has been the lowest at USD -1.37 million in the last five periods, with a negative trend in the near term. Additionally, the company's short-term liquidity has deteriorated, with its cash and equivalents reaching the lowest at USD 5.53 million in the last six semi-annual periods. Moreover, the inventory turnover ratio has also been the lowest at 2.87% in the last five semi-annual periods, indicating a slower pace of selling inventory.
In conclusion, Sonoma Pharmaceuticals, Inc. has shown a mixed financial performance for the quarter ended Mar 2024. While there are some positive aspects such as higher net profit, operating cash flow, and net sales, there are also areas that need improvement, such as operating profit, short-term liquidity, and inventory turnover ratio. Based on these financial results, Infinhub has given a 'Hold' call for the company's stock.