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Alliance Entertainment Holding Corporation (AENT) Financials

AENT
Trailing 12 months to March 31, 2026
Revenue $1.1B +3.4% YoY
Net Income $22.3M +88.9% YoY
EPS (Diluted) $0.45 +87.5% YoY
Free Cash Flow $17.1M -33.5% YoY
Market Cap $261.9M as of Sep 3, 2026
Price / Sales 0.2x on $1.1B revenue, trailing 12 months to March 31, 2026
Price / Earnings 11.7x on $22.3M net income, trailing 12 months to March 31, 2026
Price / Book 2.2x on $120.0M equity, Q3 FY2026

A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Sep 3, 2026; every other figure is from the SEC filings on this page. Not financial advice.

Source SEC Filings (10-K/10-Q) Latest period Q3 FY2026, ended Mar 31, 2026 Reported Currency USD FYE June

Newest figures come from the 10-Q for Q3 FY2026, filed May 14, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the AENT SEC filings page.

Alliance Entertainment Holding Corporation (AENT) reported $1.1B in revenue over the twelve months to Mar 31, 2026, up 3.4% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 5 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI AENT FY2025

The dominant mechanic is operating recovery without sales growth, funded within a still-leveraged balance sheet.

Revenue fell from $1.42B in FY2022 to $1.06B in FY2025, yet operating margin improved, indicating better economics on a smaller sales base rather than scale-led growth. Operating cash flow exceeded net income in both FY2024 and FY2025, but declined from $55.8M to $26.8M; cash conversion remained positive while becoming less powerful.

Debt-to-equity fell from 3.9x in FY2023 to 2.5x in FY2025, showing reduced leverage alongside a larger equity cushion. The current ratio was 1.3x in FY2025, but liabilities were roughly 71.4% of assets, so improved short-term coverage did not make the financing structure conservative.

FY2025 free cash flow was $26.8M against just $54K of capital expenditures, so reported reinvestment consumed little operating cash. That pattern differs from FY2024, when free cash flow reached $55.6M, making cash generation positive but variable rather than steadily expanding.

[ NOT FINANCIAL ADVICE ]

Financial Health Signals

Profitability Growth Leverage Liquidity CashFlow Returns 29 / 100
Financial Health Score 29/100

Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →

Health score ≠ stock price. This rates the quality of Alliance Entertainment Holding Corporation's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability
28

Alliance Entertainment Holding Corporation has an operating margin of 2.8%, meaning the company retains $3 of operating profit per $100 of revenue. This below-average margin results in a low score of 28/100, suggesting thin profitability after operating expenses. This is up from 1.3% the prior year.

Growth
18

Alliance Entertainment Holding Corporation's revenue declined 3.4% year-over-year, from $1.1B to $1.1B. This contraction results in a growth score of 18/100.

Leverage
26

Alliance Entertainment Holding Corporation has elevated debt relative to equity (D/E of 2.50), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 26/100, reflecting increased financial risk.

Liquidity
32

Alliance Entertainment Holding Corporation's current ratio of 1.26 indicates adequate short-term liquidity, earning a score of 32/100. The company can meet its near-term obligations, though with limited headroom.

Cash Flow
36

Alliance Entertainment Holding Corporation has a free cash flow margin of 2.5%, earning a moderate score of 36/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns
31

Alliance Entertainment Holding Corporation's ROE of 14.6% shows moderate profitability relative to equity, earning a score of 31/100. This is up from 5.2% the prior year.

Altman Z-Score Safe
4.19

Alliance Entertainment Holding Corporation scores 4.19, well above the 2.99 safe threshold. This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.

Piotroski F-Score Partial
6/8

Alliance Entertainment Holding Corporation passes 6 of 8 computable financial strength tests (1 of the nine could not be computed from available data). All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.

Earnings Quality Cash-Backed
1.78x

For every $1 of reported earnings, Alliance Entertainment Holding Corporation generates $1.78 in operating cash flow ($26.8M OCF vs $15.1M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Interest Coverage Adequate
4.19x

Alliance Entertainment Holding Corporation earns $4.19 in operating income for every $1 of interest expense ($30.1M vs $7.2M). This adequate coverage means the company can meet its interest obligations, but has limited cushion if earnings fall.

Key Financial Metrics

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Earnings & Revenue

Revenue
$258.2M
YoY+21.2%
QoQ-30.0%

Alliance Entertainment Holding Corporation generated $258.2M in revenue in Q3 2026. This represents an increase of 21.2% from the same quarter a year earlier. Against the prior quarter it is down 30.0%.

EBITDA
$4.7M
YoY-3.5%
QoQ-74.6%

Alliance Entertainment Holding Corporation's EBITDA was $4.7M in Q3 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 3.5% from the same quarter a year earlier. Against the prior quarter it is down 74.6%.

Net Income
$2.3M
YoY+24.9%
QoQ-75.4%
5Y CAGR-9.7%

Alliance Entertainment Holding Corporation reported $2.3M in net income in Q3 2026. This represents an increase of 24.9% from the same quarter a year earlier. Against the prior quarter it is down 75.4%.

EPS (Diluted)
$0.05
YoY+25.0%
QoQ-72.2%

Alliance Entertainment Holding Corporation earned $0.05 per diluted share (EPS) in Q3 2026. This represents an increase of 25.0% from the same quarter a year earlier. Against the prior quarter it is down 72.2%.

Cash & Balance Sheet

Free Cash Flow
$20.9M
YoY+762.5%
QoQ+223.6%

Alliance Entertainment Holding Corporation generated $20.9M in free cash flow in Q3 2026, representing cash available after capex. This represents an increase of 762.5% from the same quarter a year earlier. Against the prior quarter it is up 223.6%.

Cash & Debt
$1.2M
YoY-39.1%
QoQ-10.3%
5Y CAGR+3.8%

Alliance Entertainment Holding Corporation held $1.2M in cash as of Q3 2026; long-term debt is not reported for that period.

Shares Outstanding
51M
YoY0.0%
QoQ0.0%

Alliance Entertainment Holding Corporation had 51M shares outstanding in Q3 2026. That is unchanged from the same quarter a year earlier. It is unchanged from the prior quarter.

Dividends Per Share

Not reported for Q3 2026.

Margins & Returns

Gross Margin
12.8%
YoY-0.8pp
QoQ0.0pp

Alliance Entertainment Holding Corporation's gross margin was 12.8% in Q3 2026, indicating the percentage of revenue retained after direct costs. This is down 0.8 percentage points from the same quarter a year earlier. It is unchanged from the prior quarter.

Operating Margin
1.3%
YoY-0.4pp
QoQ-3.4pp

Alliance Entertainment Holding Corporation's operating margin was 1.3% in Q3 2026, reflecting core business profitability. This is down 0.4 percentage points from the same quarter a year earlier. Against the prior quarter it is down 3.4 percentage points.

Net Margin
0.9%
YoY0.0pp
QoQ-1.7pp

Alliance Entertainment Holding Corporation's net profit margin was 0.9% in Q3 2026, showing the share of revenue converted to profit. That is unchanged from the same quarter a year earlier. Against the prior quarter it is down 1.7 percentage points.

Return on Equity
1.9%
YoY0.0pp
QoQ-6.0pp

Alliance Entertainment Holding Corporation's ROE was 1.9% in Q3 2026, measuring profit generated per dollar of shareholder equity. That is unchanged from the same quarter a year earlier. Against the prior quarter it is down 6.0 percentage points.

Capital Allocation

Capital Expenditures
$262K
YoY+523.8%
QoQ-28.6%

Alliance Entertainment Holding Corporation invested $262K in capex in Q3 2026, funding long-term assets and infrastructure. This represents an increase of 523.8% from the same quarter a year earlier. Against the prior quarter it is down 28.6%.

R&D Spending

Not reported for Q3 2026.

Share Buybacks

Not reported for Q3 2026.

AENT Income Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

AENT quarterly income statement
MetricQ3'2610-QQ2'2610-QQ1'2610-QQ4'2510-QQ3'2510-QQ2'2510-QQ1'2510-QQ4'2410-K
Revenue$258.2M+21.2%$368.7M-6.3%$254.0M+10.9%$227.8M-3.9%$213.0M+0.9%$393.7M-7.5%$229.0M+1.0%$236.9M-4.1%
Cost of Revenue$225.2M+22.4%$321.6M-8.5%$216.8M+6.6%-$738.8M+2.9%$184.0M+0.4%$351.4M-7.0%$203.5M+1.5%-$760.6M+8.3%
Gross Profit$33.0M+13.6%$47.1M+11.4%$37.2M+45.6%$966.6M-3.1%$29.1M+3.7%$42.3M-11.3%$25.5M-2.7%$997.5M-7.4%
SG&A Expenses$16.9M+19.0%$16.6M+20.2%$15.1M+15.1%$14.9M+5.6%$14.2M+1.7%$13.8M-9.0%$13.1M-9.2%$14.1M-2.7%
Operating Income$3.3M-6.0%$17.3M+16.8%$10.5M+397.5%$9.7M+2240.6%$3.5M+622.0%$14.8M-7.5%$2.1M+233.6%$414K+36.6%
EBITDA$4.7M-3.5%$18.6M+22.2%$11.0M+331.6%$12.8M+1305.5%$4.9M+1868.5%$15.2M-7.3%$2.5M+358.0%$914K+30.0%
Interest Expense$1.5M0.0%$1.7M-15.0%$1.6M-42.9%$900K-72.7%$1.5M-34.8%$2.0M-33.3%$2.8M+7.7%$3.3M+43.8%
Income Tax$323K-64.9%$3.6M+52.4%$1.9M+260.6%$1.5M+131.7%$919K+293.5%$2.4M-37.9%-$1.2M+8.5%-$4.8M-305.7%
Net Income$2.3M+24.9%$9.4M+32.8%$4.9M+1129.2%$5.8M+129.8%$1.9M+154.8%$7.1M-20.7%$397K+111.5%$2.5M+154.1%
EPS (Basic)$0.05+25.0%$0.18+28.6%$0.10+900.0%$0.12+140.0%$0.04+157.1%$0.14-22.2%$0.01+114.3%$0.05+150.0%
EPS (Diluted)$0.05+25.0%$0.18+28.6%$0.10+900.0%$0.12+140.0%$0.04+157.1%$0.14-22.2%$0.01+114.3%$0.05+150.0%
Diluted Shares (Avg)51M+0.1%51M+0.1%51M+0.1%N/A51M+0.1%51M-0.8%51M+0.9%N/A

Not reported in any period shown, so not listed: R&D Expenses.

AENT Balance Sheet

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

AENT quarterly balance sheet
MetricQ3'2610-QQ2'2610-QQ1'2610-QQ4'2510-QQ3'2510-QQ2'2510-QQ1'2510-QQ4'2410-K
Total Assets$387.1M+10.8%$434.1M+8.0%$383.0M-3.2%$361.2M+6.0%$349.4M+7.8%$401.7M-6.1%$395.7M+1.8%$340.8M-12.5%
Current Assets$240.0M+19.1%$286.7M+13.1%$242.2M-3.7%$218.1M+11.2%$201.4M-0.6%$253.5M-17.3%$251.6M-3.7%$196.2M-24.8%
Cash & Equivalents$1.2M-39.1%$1.4M-44.6%$3.2M-24.9%$1.2M+9.5%$2.0M+23.6%$2.5M-6.2%$4.3M+250.2%$1.1M+30.5%
Short-Term Investments$0$0$0$0$0$0$0$0
Inventory$126.7M+36.0%$117.8M+22.3%$121.7M-12.1%$102.8M+5.6%$93.2M-13.6%$96.3M-15.4%$138.5M-13.1%$97.4M-33.6%
Accounts Receivable$92.8M-2.1%$148.7M+1.1%$94.2M-8.0%$95.0M+2.9%$94.9M+8.4%$147.0M-19.9%$102.4M+9.5%$92.4M-12.0%
Long-Term Investments$0$0$0$0$0$0$0$0
Goodwill$94.1M+5.6%$94.1M+5.6%$89.1M0.0%$89.1M0.0%$89.1M0.0%$89.1M0.0%$89.1M0.0%$89.1M0.0%
Total Liabilities$267.2M+6.0%$316.5M+3.4%$274.9M-10.7%$258.0M+1.9%$252.0M+5.5%$306.2M-9.8%$307.6M-0.7%$253.2M-18.3%
Current Liabilities$180.0M+16.0%$212.6M+4.1%$189.0M+0.6%$172.7M+16.8%$155.1M+6.7%$204.3M-9.8%$187.9M-37.9%$147.9M-50.9%
Non-Current Liabilities$87.1M-10.0%$103.9M+1.9%$85.8M-28.3%$85.3M-19.0%$96.8M+3.6%$101.9M-9.8%$119.7M+1556.9%$105.3M+1102.0%
Total Equity$120.0M+23.1%$117.6M+23.1%$108.1M+22.8%$103.2M+17.8%$97.4M+14.4%$95.6M+8.0%$88.0M+11.8%$87.6M+10.2%
Retained Earnings$71.3M+45.6%$69.0M+46.4%$59.6M+48.9%$54.7M+38.0%$49.0M+31.8%$47.1M+16.3%$40.0M+26.7%$39.6M+13.1%

Not reported in any period shown, so not listed: Long-Term Debt.

AENT Cash Flow Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

AENT quarterly cash flow statement
MetricQ3'2610-QQ2'2610-QQ1'2610-QQ4'2510-QQ3'2510-QQ2'2510-QQ1'2510-QQ4'2410-K
Operating Cash Flow$21.1M+758.4%-$16.5M-165.5%$2.7M+123.4%$10.7M+11.1%$2.5M-87.7%$25.3M-12.4%-$11.6M-324.9%$9.7M+296.1%
Depreciation & Amortization$1.4M+3.0%$1.3M+222.5%$442K+3.8%$3.2M+531.2%$1.4M+238.0%$400K0.0%$426K-29.0%$500K+25.0%
Stock-Based CompensationN/AN/A$25KN/A$0$0-100.0%N/AN/A
Capital Expenditures$262K+523.8%$367K$345K+3350.0%$2K-33.3%$42K-23.6%$0$10K-$3K
Free Cash Flow$20.9M+762.5%-$16.9M-166.9%$2.4M+120.4%$10.7M+11.1%$2.4M-87.9%$25.3M-$11.6M$9.7M
Investing Cash Flow-$262K-523.8%-$1.5M+80.4%-$319K-6480.0%-$546K-2200.0%-$42K-250.0%-$7.6M$5K$26K+103.2%
Financing Cash Flow-$21.0M-629.7%$16.2M+182.9%-$414K-102.8%-$11.0M-7.7%-$2.9M+86.3%-$19.5M+28.5%$14.8M+377.3%-$10.2M-282.3%

Not reported in any period shown, so not listed: Dividends Paid, Share Buybacks.

AENT Financial Ratios

Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

AENT quarterly financial ratios
MetricQ3'2610-QQ2'2610-QQ1'2610-QQ4'2510-QQ3'2510-QQ2'2510-QQ1'2510-QQ4'2410-K
Gross Margin12.8%-0.8pp12.8%+2.0pp14.6%+3.5pp424.4%13.6%+0.4pp10.7%-0.5pp11.2%-0.4pp421.0%
Operating Margin1.3%-0.4pp4.7%+0.9pp4.2%+3.2pp4.3%+4.1pp1.7%+2.0pp3.8%0.0pp0.9%+1.6pp0.2%+0.1pp
Net Margin0.9%0.0pp2.5%+0.8pp1.9%+1.7pp2.5%+1.5pp0.9%+2.5pp1.8%-0.3pp0.2%+1.7pp1.1%+2.9pp
Return on Equity1.9%0.0pp8.0%+0.6pp4.5%+4.1pp5.6%+2.7pp1.9%+5.9pp7.4%-2.7pp0.4%+4.8pp2.9%+8.7pp
Return on Assets0.6%+0.1pp2.2%+0.4pp1.3%+1.2pp1.6%+0.9pp0.5%+1.6pp1.8%-0.3pp0.1%+1.0pp0.7%+1.9pp
Current Ratio1.330.0x1.35+0.1x1.28-0.1x1.26-0.1x1.30-0.1x1.24-0.1x1.34+0.5x1.33+0.5x
Debt-to-Equity2.23-0.4x2.69-0.5x2.54-1.0x2.50-0.4x2.59-0.2x3.20-0.6x3.49-0.4x2.89-1.0x
Asset Turnover0.67+0.1x0.85-0.1x0.66+0.1x0.63-0.1x0.610.0x0.980.0x0.580.0x0.70+0.1x
FCF Margin8.1%+7.0pp-4.6%-11.0pp0.9%+6.0pp4.7%+0.6pp1.1%-8.3pp6.4%-5.1%4.1%

Reported as filed but not readable as a share of revenue in the periods where the ratio runs further from zero than a revenue base allows; no change figure is given where either compared period is one of those: Gross Margin.

Similar Companies

Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.

Company Fiscal year Revenue Net income Net margin Market cap Health score
Alliance Entertainment Holding Corporation AENT FY2025 $1.1B $15.1M 1.4% $261.9M 29/100
AMC Global Media Inc AMCX FY2025 $2.3B $101.8M 4.4% $521.8M 38/100
Reservoir Media Inc RSVR FY2026 $175.7M $7.8M 4.5% $646.1M 58/100
Marcus Corp MCS FY2025 $758.5M $12.7M 1.7% $865.5M 29/100
Dave & Busters Entmt Inc PLAY FY2025 $2.1B -$48.7M -2.3% $324.9M 28/100
Huya Inc HUYA FY2025 $929.8M -$16.1M -1.7% $475.0M 41/100

Frequently Asked Questions

What is Alliance Entertainment Holding Corporation's annual revenue?

Alliance Entertainment Holding Corporation (AENT) reported $1.1B in total revenue for fiscal year 2025. This represents a -3.4% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Alliance Entertainment Holding Corporation's revenue growing?

Alliance Entertainment Holding Corporation (AENT) revenue declined by 3.4% year-over-year, from $1.1B to $1.1B in fiscal year 2025.

Is Alliance Entertainment Holding Corporation profitable?

Yes, Alliance Entertainment Holding Corporation (AENT) reported a net income of $15.1M in fiscal year 2025, with a net profit margin of 1.4%.

Alliance Entertainment Holding Corporation (AENT) reported diluted earnings per share of $0.30 for fiscal year 2025. This represents a 233.3% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Alliance Entertainment Holding Corporation (AENT) had EBITDA of $35.5M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

Alliance Entertainment Holding Corporation (AENT) had a gross margin of 100.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

Alliance Entertainment Holding Corporation (AENT) had an operating margin of 2.8% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

Alliance Entertainment Holding Corporation (AENT) had a net profit margin of 1.4% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Alliance Entertainment Holding Corporation (AENT) has a return on equity of 14.6% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

Alliance Entertainment Holding Corporation (AENT) generated $26.8M in free cash flow during fiscal year 2025. This represents a -51.9% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

Alliance Entertainment Holding Corporation (AENT) generated $26.8M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

Alliance Entertainment Holding Corporation (AENT) had $361.2M in total assets as of fiscal year 2025, including both current and long-term assets.

Alliance Entertainment Holding Corporation (AENT) invested $54K in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Alliance Entertainment Holding Corporation (AENT) had 51M shares outstanding as of fiscal year 2025.

Alliance Entertainment Holding Corporation (AENT) had a current ratio of 1.26 as of fiscal year 2025, which is considered adequate.

Alliance Entertainment Holding Corporation (AENT) had a debt-to-equity ratio of 2.50 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

Alliance Entertainment Holding Corporation (AENT) had a return on assets of 4.2% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

Alliance Entertainment Holding Corporation (AENT) trades at 11.7x earnings, its market capitalization divided by net income of $22.3M net income, trailing 12 months to March 31, 2026. The market capitalization is $261.9M as of Sep 3, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

Alliance Entertainment Holding Corporation (AENT) trades at 0.2x sales, its market capitalization divided by revenue of $1.1B revenue, trailing 12 months to March 31, 2026. The market capitalization is $261.9M as of Sep 3, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

Alliance Entertainment Holding Corporation (AENT) has an Altman Z-Score of 4.19, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

Alliance Entertainment Holding Corporation (AENT) has a Piotroski F-Score of 6 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Alliance Entertainment Holding Corporation (AENT) has an earnings quality ratio of 1.78x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Alliance Entertainment Holding Corporation (AENT) has an interest coverage ratio of 4.19x, meaning it can adequately cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

Alliance Entertainment Holding Corporation (AENT) scores 29 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.

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