KE Holdings' Earnings: A Closer Look at Accrual Ratio and Unusual Items

KE Holdings' (NYSE:BEKE) latest earnings release has investors concerned beyond statutory profit. The company's accrual ratio was 0.20 for FY2025, indicating negative free cash flow despite a profit of CN¥2.99b. Unusual items boosted profit by CN¥240m last year, but the accrual ratio was better last year. Investors are looking for stronger cash conversion in the current year.