The company’s cash from operating activities is showing an upward trend, while investing activities do not provide the cash at all due to huge expenditures on property, equipment, and acquisitions.

 

Cash from financing activities, on the other hand, is always positive because the company borrows money. The company uses credit lines, long-term borrowings, and floor plan financing.

 

Both capital expenditures and dividends at Alta Equipment Group Inc. are increasing. While it’s good when dividends are growing, capital expenditures should decline, or at least stay at the same level.

 

Stock repurchases and issuances rarely occur, as you can see on the chart. Despite the lack of benefits for shareholders from stock buybacks, this situation ultimately benefits the company and its shareholders in the long run, as the company actively engages in growth and expansion, making use of available resources.

 

Alta Equipment Group Inc.’s free cash flow is constantly negative due to CAPEX being higher than cash from operating activities, but its overall trend is also heading in the right direction, as you can see in the picture.

 

Its CAPEX to net income ratio is too high; it far exceeds 25%, which is considered desirable by investors, but again, the company spends a lot of resources on growth and expansion, so in the future this ratio might stabilize.

 

In conclusion, Alta Equipment Group Inc.’s cash flow statement showed that the company is getting better year over year in some aspects, such as dividends, cash from operating activities, etc., but it also revealed that the company relies heavily on debt to sustain itself.