Revenue Performance: CLWT's revenue for Q2 2023 stood at $7,957,000, representing a slight decline from $8,214,000 in Q1 2023, reflecting a QoQ decrease of 3.19% but a YoY increase of 18.23%. This highlights a relative strength in annual performance, though short-term sales momentum is lacking.
Profitability Metrics: Gross profit decreased substantially to $1,498,000, down 45.13% QoQ and 20.66% YoY. The gross profit margin fell to 18.81%, signaling both rising costs and prices suppressing profitability, which warrants further investigation into operational cost efficiencies.
Net Income: The company experienced a loss of $255,000 for the quarter, intensifying from losses of $127,500 in the previous quarter. This reflects a significant deterioration in profitability and demands attention to expense management going forward.
Liquid Assets: Cash reserves declined from $6.56 million to $4.36 million, contributing to a current ratio of 2.32, indicating the firm can cover current liabilities but should bolster liquidity to fuel operational sustainability during downturns.