### Financial Metrics Analysis
- Revenue: $19.05 million,
- YoY: Decrease of 3.31%
- QoQ: Increase of 8.20%
This indicates a slight recovery quarter-on-quarter but overall decline compared to the prior year, reflective of stagnant service demand.
- Gross Profit: $5.09 million, Gross Profit Margin: 26.73%.
- YoY: Decrease of 19.47%,
- QoQ: Increase of 26.00%.
The significant drop YoY is concerning, showcasing increased operational costs.
- Operating Income: -$3.1 million (Operating Margin: -16.26%).
- YoY: Decreased substantially by 34,322.22%,
- QoQ: Improved by 39.93%.
Negative operating income indicates ongoing operational struggles.
- Net Income: -$5.76 million
- YoY: Decrease of 118.67%
- QoQ: Declined 288.54%.
This consistent loss underscores efficacy issues at Aeries in managing expenses and revenues effectively.
### Cash Flow & Balance Sheet Health
- Cash at beginning of the period: $2.39 million; Cash at end: $2.76 million, reflecting a net change in cash of $378,000.
- Increased liquid assets are beneficial but still not enough to alleviate distress suggested by a $5.76 million net income loss, manifesting a cash flow contradiction.
In terms of liabilities, total liabilities stand at $45.94 million, against total assets of $39.83 million, indicating elevated leverage risk.
Additionally, Aeries reported an equity deficit of $5.80 million, raising questions about its sustainability.