$Green Dot (GDOT.US)$Revenue has been growing steadily for the past 5 years, with an average growth rate of 10%. Operating profit was significantly reduced by 75.5% in 2020 due to the continuous decline in gross margin since 2020 and effective control of operating expenses in the past two years. It quickly rebounded in the following two years but has not yet returned to the level of 5 years ago, similar to the trend of net income.
The income statement shows that the interest expenses are very low and can be ignored, but the other non-operating losses have been continuously expanding in the past two years, reaching 0.01 billion in 2022, which has some impact on net income.
Over the past 5 years, the debt-to-assets ratio has increased from 60% to 84%. The accounts receivable are relatively normal, and there is not much change in goodwill and other intangible assets, totaling 0.445 billion in 2022, accounting for 57% of the net assets of 0.78 billion.
Investments and prepayments increased from 0.97 billion in 2021 to 2.1 billion, continuing to grow to 2.36 billion in 2022. This may be the source of the other non-operating losses on the income statement, and the short-term results of the investments seem unsatisfactory.
Long-term borrowings increased from 0 to 0.035 billion in 2022, while other current liabilities increased from 1.19 billion in 2020 to 2.75 billion, continuing to rise to 3.49 billion, which is a significant burden.
For the past 5 years, operating cash flow has been significantly lower than investment cash flow, resulting in no shareholder earnings.
The current ratio has dropped to 0.37, indicating that the company seems to be facing a severe short-term cash shortage.
The current PE ratio is 16.2, currently not attractive.
