ARTW ARTS WAY MANUFACTURING CO INC

Overview and Growth

ARTS WAY MANUFACTURING CO INC generated $22.98M of revenue in fiscal 2025, with net income of $1.03M and an operating cash outflow of $904.14K. The $22.98M revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Revenue was 6.2% below fiscal 2024 revenue of $24.50M, marking a top-line contraction. The company reported diluted EPS of $0.20, adding a shareholder-level measure to the absolute income figures considered below. Against diluted EPS of $0.06 in fiscal 2024, the current result was 233.3% higher. Asset turnover was 1.02x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

The first profit layer was $6.27M of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross profit represented 27.3% of revenue, showing how much of the top line remained after direct costs. The reported operating result was $289.45K, capturing profitability after direct costs and the operating expenses reflected in the statements. The operating result equaled 1.3% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. The bottom-line result was net income of $1.03M, after the operating, financing, tax, and other items recognized for the period. Net margin was 4.5%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $1.44M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. The pretax margin was 6.3%, relating income before taxes directly to revenue. The reported income-tax provision was $402.18K, the amount recognized between pretax income and the final net-income result. Relative to pretax income, the tax provision measured 28.0%, quantifying the portion of pre-tax earnings paid in income tax. Return on period-end equity was 7.8%, relating annual net income to the equity capital on the balance sheet.

Liquidity and Capital Structure

Total assets were $22.48M, supported by $9.17M of liabilities and $13.31M of shareholder equity. The near-term balance sheet paired $14.78M of current assets with $6.44M of current liabilities at the reporting date. The current ratio was 2.3x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $4.85K, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 0.1%, excluding receivables and other current assets. The company carried $2.49M of total debt at period end, which frames its leverage and debt-service burden. The debt-to-equity relationship was 0.19x, showing how much debt the company carried for each unit of book equity. Debt represented 11.1% of total assets, placing borrowing in the context of the company’s full resource base. Relative to total assets, liabilities measured 40.8%, complementing the separate equity-based view of the company’s capital structure. Measured against total assets, cash and equivalents represented 0.0%, a balance-sheet composition measure rather than a liquidity forecast. The asset base changed 5.8% from $21.24M in fiscal 2024, leaving current total assets higher year over year.

Cash Flow and Earnings Quality

The company reported an operating cash outflow of $904.14K, rather than cash generation from operations. Capital spending of $627.62K added to the period’s operating cash use, reinforcing the overall cash deficit after investment for the year. Negative free cash flow was $1.53M, leaving a cash deficit after capital spending and reducing financial flexibility. Free-cash-flow margin was -6.7%, reflecting a cash deficit equal to 6.7% of revenue after capital spending. Relative to total assets, the post-investment cash deficit measured 6.8%.

Based on the annual report for the fiscal year ending Nov 30, 2025. Analysis generated Oct 21, 2026.