CBAT's gross profit declined substantially while current liabilities increased dramatically, signaling potential operational and financial stress despite modest revenue growth.
The company faces a concerning profit squeeze with gross margins compressing severely even as revenue grew modestly, indicating fundamental operational challenges or unfavorable cost dynamics. The substantial increase in current liabilities alongside relatively modest asset growth suggests potential liquidity pressures and working capital management issues that require close monitoring.
CBAT posted mixed financial results with revenue growing 10.5% to $195.2M, but gross profit declined substantially to $18.4M, representing a severe margin compression that signals operational difficulties. The balance sheet shows meaningful strain with current liabilities increasing 74.6% to $299.8M while total assets grew only 41% to $426.2M, creating an unfavorable leverage dynamic. Despite these concerning trends, operating cash flow improved 22.3% to $48.6M, providing some cushion against the deteriorating profitability metrics.
Current liabilities surged 74.6% — significant near-term obligations; verify ability to meet short-term debt.
Liabilities grew 73.9% — significant increase in debt or obligations, assess impact on financial flexibility.
Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.
Asset base grew 41% — expansion through organic growth, acquisitions, or capital deployment.
Current assets grew 27.8% — improving short-term liquidity or inventory/receivables build.
Cash grew 23.4% — improving liquidity position supports investment and shareholder returns.
Operating cash flow grew 22.3% — strong conversion of earnings to cash, healthy business fundamentals.
R&D investment increased 21.5% — signals commitment to future product development, though near-term margin impact.
Receivables grew 16.6% — monitor days sales outstanding for collection efficiency.
Revenue growing 10.5% — solid top-line momentum, watch margins for quality of growth.
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