Fundamentals Hub
▼ FY 2025 Summary Analysis
Annual report ending Aug 31, 2025Overview and Growth
In fiscal 2025, NORTHERN TECHNOLOGIES INTERNATIONAL CORP recorded $84.23M of revenue, net income of $17.62K, and an operating cash inflow of $2.44M. At $84.23M, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. The top line contracted 1.0% from $85.06M in fiscal 2024; this top-line contraction left the company with a smaller revenue base. Diluted earnings per share were $0.00, translating the period’s attributable earnings into the amount reported for each diluted share. Diluted EPS decreased by 100.0% from $0.55 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. The company employed $102.75M of total assets, the balance-sheet base supporting its current operating and cash-flow results. The revenue-to-assets relationship was 0.82x, showing the sales generated relative to the resources carried on the balance sheet.Profitability
The first profit layer was $31.68M of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. The gross-profit relationship equaled 37.6% of revenue, quantifying the portion retained before operating expenses were recognized. The reported operating result was $2.57M, capturing profitability after direct costs and the operating expenses reflected in the statements. Relative to revenue, operating income represented 3.1%, showing how efficiently sales converted into operating profit. After all reported below-operating-line items, the company recorded net income of $17.62K for the fiscal year. The final earnings result represented 0.0% of revenue, connecting the absolute net income figure with the company’s top-line scale. The company recognized $2.05M of income tax for the period, completing the transition from pretax income to net income. Return on period-end equity was 0.0%, relating annual net income to the equity capital on the balance sheet. Return on period-end assets was 0.0%, connecting net income with the company’s total asset base.Liquidity and Capital Structure
The company held $102.75M of assets against $26.03M of liabilities and $76.71M of equity, revealing how the asset base was financed. The near-term balance sheet paired $44.34M of current assets with $23.90M of current liabilities at the reporting date. Current assets covered current liabilities by 1.86x, leaving a positive buffer for near-term obligations. The company held $7.25M in cash and equivalents, a narrower liquidity measure than total current assets. Cash and equivalents represented 30.3% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Liabilities represented 25.3% of total assets, quantifying the liability-funded share of the company’s resource base. Measured against total assets, cash and equivalents represented 7.1%, a balance-sheet composition measure rather than a liquidity forecast. Compared with $94.68M in fiscal 2024, the current asset base moved 8.5% and finished higher. Against $75.18M of equity in fiscal 2024, the current book-equity balance moved 2.0% and ended higher. The reported cash balance changed 46.4% from $4.95M in fiscal 2024, ending higher year over year.Cash Flow and Earnings Quality
Operating activities produced a cash inflow of $2.44M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Against net income, operating cash flow measured 138.65x, showing the relationship between accrual earnings and operating cash. Capital spending was $1.53M, absorbing part of the cash generated from operations before free cash flow. Relative to operating cash flow, capital expenditures measured 62.5%, connecting investment intensity with the company’s cash-generation base. The combination of operating cash flow and capital spending produced $916.52K of positive free cash flow for the period. The free-cash-flow margin was 1.1%, measuring cash remaining after capital spending against revenue. Measured against total assets, free cash flow represented 0.9%, showing the cash productivity of the company’s assets.
Based on the annual report for the fiscal year ending Aug 31, 2025.
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