ALTEX INDUS INC (ALTX) Financials

ALTX

Trailing 12 months to June 30, 2026

Revenue $21K 0.0% YoY

Net Income -$88K +51.6% YoY

EPS (Diluted) Not reported for the trailing 12 months

Operating Cash Flow -$141K -60.2% YoY

Market Cap $1.9M as of Sep 17, 2026

Price / Sales 90.6x on $21K revenue, trailing 12 months to June 30, 2026

Price / Earnings n/m net loss, so no earnings multiple, trailing 12 months to June 30, 2026

Price / Book 1.5x on $1.3M 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 17, 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 Jun 30, 2026 Reported Jul 31, 2026 Currency USD FYE September

Newest figures come from the 10-Q for Q3 FY2026, filed Jul 31, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the ALTX SEC filings page.

ALTEX INDUS INC (ALTX) reported $21K in revenue over the twelve months to Jun 30, 2026. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 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 ALTX FY2025 2026-08-29

The dominant mechanic is non-operating cash dependence: reported profits alternate with recurring operating losses as revenue contracts.

FY2024 paired net income of $437K with operating cash flow of -$78K, showing that accounting profit did not come from the core cash-generating activity. The same mismatch appeared in FY2022: investing cash flow was $450K while operating cash flow was -$129K, so the profitable periods coincide with investment-related cash receipts rather than operating conversion.

In FY2025, revenue of $18K sat beside SG&A of $320K, making the administrative cost base vastly larger than the reported activity level. FY2024 showed the same structure, with $23K of revenue against $233K of SG&A, indicating that costs have not flexed down with shrinking activity.

The balance-sheet scale mismatch is pronounced: FY2025 total assets were $2.7M against liabilities of $1.4M, far exceeding the year's sales volume. A 2.0x current ratio indicates current assets remained above current liabilities, but the financial profile is dominated by accumulated balance-sheet resources rather than recurring sales.

Financial Health Signals

Financial health score not available

ALTEX INDUS INC does not currently provide enough eligible data for a peer-relative financial health score, so none is published. The signals and metrics below are current.

Piotroski F-Score Partial

2/7

ALTEX INDUS INC passes 2 of 7 computable financial strength tests (2 of the nine could not be computed from available data). 1 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality No Cash Backing

N/A

ALTEX INDUS INC reported a net loss of $192K while operations used $99K of cash. With neither figure positive, the ratio between the two carries no quality signal.

Key Financial Metrics

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Earnings & Revenue

Revenue

$6K

YoY+20.0%

QoQ+50.0%

5Y CAGR-7.8%

10Y CAGR+7.2%

ALTEX INDUS INC generated $6K in revenue in Q3 2026. This represents an increase of 20.0% from the same quarter a year earlier. Against the prior quarter it is up 50.0%.

Net Income

$21K

YoY+275.0%

QoQ+144.7%

ALTEX INDUS INC reported $21K in net income in Q3 2026. This represents an increase of 275.0% from the same quarter a year earlier. Against the prior quarter it is up 144.7%.

EBITDA

Not reported for Q3 2026.

EPS (Diluted)

Not reported for Q3 2026.

Cash & Balance Sheet

Cash & Debt

$2.5M

YoY-4.0%

QoQ-0.2%

5Y CAGR+4.2%

10Y CAGR-0.2%

ALTEX INDUS INC held $2.5M in cash as of Q3 2026; long-term debt is not reported for that period.

Shares Outstanding

11M

YoY-0.4%

QoQ0.0%

5Y CAGR-1.6%

10Y CAGR-1.4%

ALTEX INDUS INC had 11M shares outstanding in Q3 2026. This represents a decrease of 0.4% from the same quarter a year earlier. It is unchanged from the prior quarter.

Free Cash Flow

Not reported for Q3 2026.

Dividends Per Share

Not reported for Q3 2026.

Margins & Returns

Return on Equity

1.6%

YoY+2.5pp

QoQ+5.3pp

5Y change+3.9pp

10Y change+7.8pp

ALTEX INDUS INC's ROE was 1.6% in Q3 2026, measuring profit generated per dollar of shareholder equity. This is up 2.5 percentage points from the same quarter a year earlier. Against the prior quarter it is up 5.3 percentage points.

Gross Margin

Not reported for Q3 2026.

Operating Margin

Not reported for Q3 2026.

Net Margin

Not shown for Q3 2026: the reported ratio is above 100.0% of revenue, so it does not read as a share of revenue.

Capital Allocation

None of these metrics is reported for Q3 2026.

ALTX 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.

ALTX quarterly income statement

Metric	TTM	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K	FY1110-K
Revenue	$21K	$18K-21.7%	$23K-28.1%	$32K-11.1%	$36K-18.2%	$44K+41.9%	$31K-44.6%	$56K-12.5%	$64K+4.9%	$61K+117.9%	$28K-41.7%	$48K-52.0%	$100K-1.0%	$101K-32.2%	$149K-7.5%	$161K
SG&A Expenses	$249K	$320K+37.3%	$233K-11.4%	$263K+46.9%	$179K+3.5%	$173K+1.8%	$170K+5.6%	$161K+1.9%	$158K-16.0%	$188K-51.8%	$390K-3.9%	$406K+3.8%	$391K+8.9%	$359K-7.0%	$386K-16.3%	$461K
Income Tax	N/A	$0	$0	$0	$0	$0	$0	$0	$0	$0	N/A	N/A	N/A	N/A	-$102K+14.3%	-$119K
Net Income	-$88K	-$192K-143.9%	$437K+433.6%	-$131K-141.9%	$313K+481.7%	-$82K+36.9%	-$130K-306.3%	-$32K+56.2%	-$73K+43.4%	-$129K+65.0%	-$369K-6.0%	-$348K-14.1%	-$305K-10.5%	-$276K+4.8%	-$290K+15.0%	-$341K

Metric	Q3'2610-Q	Q2'2610-Q	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K
Revenue	$6K+20.0%	$4K0.0%	$7K+40.0%	$4K-42.9%	$5K+25.0%	$4K-33.3%	$5K-16.7%	$7K+16.7%
SG&A Expenses	$54K+17.4%	$72K+18.0%	$60K-60.0%	$63K0.0%	$46K-17.9%	$61K-4.7%	$150K+200.0%	$63K+28.6%
Net Income	$21K+275.0%	-$47K-46.9%	-$30K+74.1%	-$32K-45.5%	-$12K-102.4%	-$32K-6.7%	-$116K-625.0%	-$22K-37.5%

Not reported in any period shown, so not listed: Cost of Revenue, Gross Profit, R&D Expenses, Operating Income, EBITDA, Interest Expense, Income Tax, EPS (Basic), EPS (Diluted), Diluted Shares (Avg).

ALTX Balance Sheet

ALTX quarterly balance sheet

Metric	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K	FY1110-K
Total Assets	$2.7M+0.7%	$2.7M+16.8%	$2.3M-6.3%	$2.5M+13.3%	$2.2M-5.6%	$2.3M-0.6%	$2.3M-1.9%	$2.4M-3.5%	$2.5M-5.5%	$2.6M-5.8%	$2.8M-4.0%	$2.9M-3.6%	$3.0M-2.9%	$3.1M-7.7%	$3.4M
Current Assets	$2.6M-4.2%	$2.7M+18.7%	$2.3M-5.3%	$2.4M+15.7%	$2.1M-4.6%	$2.2M-5.5%	$2.3M-0.3%	$2.3M-3.1%	$2.4M-5.0%	$2.5M-5.2%	$2.6M-3.5%	$2.7M-3.2%	$2.8M-2.3%	$2.9M-7.2%	$3.1M
Cash & Equivalents	$2.5M-4.2%	$2.7M+19.0%	$2.2M-5.3%	$2.4M+15.8%	$2.0M-4.9%	$2.1M-5.5%	$2.3M-0.4%	$2.3M-3.2%	$2.3M-5.0%	$2.5M-5.1%	$2.6M-3.5%	$2.7M-3.1%	$2.8M-2.3%	$2.9M+10.4%	$2.6M
Short-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Accounts Receivable	$1K-66.7%	$3K-25.0%	$4K+300.0%	$1K-66.7%	$3K	$0	$0	$0	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Long-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Total Liabilities	$1.4M+18.9%	$1.2M-1.8%	$1.2M+3.6%	$1.2M-1.8%	$1.2M-2.4%	$1.2M+10.9%	$1.1M0.0%	$1.1M+0.6%	$1.1M-0.3%	$1.1M+26.1%	$862K+37.5%	$627K+56.4%	$401K+93.7%	$207K+56.8%	$132K
Current Liabilities	$1.3M+8.1%	$1.2M-0.2%	$1.2M+6.2%	$1.1M+0.4%	$1.1M-0.4%	$1.1M+2.0%	$1.1M0.0%	$1.1M+0.6%	$1.1M-0.3%	$1.1M+26.1%	$862K+37.5%	$627K+56.4%	$401K+93.7%	$207K+56.8%	$132K
Non-Current Liabilities	$127K	$0-100.0%	$20K-57.4%	$47K-34.7%	$72K-25.8%	$97K	$0	$0	$0	$0	$0	$0	$0	$0	$0
Total Equity	$1.3M-13.2%	$1.5M+36.6%	$1.1M-15.0%	$1.3M+30.7%	$1.0M-9.0%	$1.1M-10.7%	$1.3M-3.5%	$1.3M-6.7%	$1.4M-9.1%	$1.5M-20.1%	$1.9M-15.5%	$2.3M-12.8%	$2.6M-9.8%	$2.9M-10.4%	$3.2M
Retained Earnings	-$12.5M-1.6%	-$12.3M+3.4%	-$12.7M-1.0%	-$12.6M+2.4%	-$12.9M-0.6%	-$12.8M-1.0%	-$12.7M-0.3%	-$12.6M-0.6%	-$12.6M-1.0%	-$12.4M-3.1%	-$12.1M-3.0%	-$11.7M-2.7%	-$11.4M-2.5%	-$11.1M-2.7%	-$10.8M

Metric	Q3'2610-Q	Q2'2610-Q	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K
Total Assets	$2.7M-4.4%	$2.7M-6.1%	$2.7M+0.6%	$2.7M+0.7%	$2.8M+0.6%	$2.8M+24.4%	$2.7M+16.5%	$2.7M+16.8%
Current Assets	$2.5M-3.6%	$2.5M-4.9%	$2.5M-4.3%	$2.6M-4.2%	$2.6M-4.1%	$2.6M+18.6%	$2.6M+18.3%	$2.7M+18.7%
Cash & Equivalents	$2.5M-4.0%	$2.5M-4.9%	$2.5M-4.4%	$2.5M-4.2%	$2.6M-4.1%	$2.6M+18.8%	$2.6M+18.4%	$2.7M+19.0%
Short-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Accounts Receivable	$2K-33.3%	$3K0.0%	$3K0.0%	$1K-66.7%	$3K0.0%	$3K0.0%	$3K+50.0%	$3K-25.0%
Long-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Total Liabilities	$1.4M-1.6%	$1.4M-2.7%	$1.4M+10.8%	$1.4M+18.9%	$1.4M+18.9%	$1.4M+20.5%	$1.3M+5.6%	$1.2M-1.8%
Current Liabilities	$1.3M+0.6%	$1.3M-0.4%	$1.3M+1.2%	$1.3M+8.1%	$1.3M+7.4%	$1.3M+8.7%	$1.3M+6.7%	$1.2M-0.2%
Non-Current Liabilities	$106K-21.5%	$113K-22.6%	$120K	$127K	$135K	$146K+2333.3%	$0-100.0%	$0-100.0%
Total Equity	$1.3M-7.2%	$1.3M-9.5%	$1.3M-8.3%	$1.3M-13.2%	$1.4M-12.9%	$1.4M+28.7%	$1.4M+28.1%	$1.5M+36.6%
Retained Earnings	-$12.5M-0.7%	-$12.5M-1.0%	-$12.5M-0.9%	-$12.5M-1.6%	-$12.4M-1.5%	-$12.4M+2.6%	-$12.4M+2.7%	-$12.3M+3.4%

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

ALTX Cash Flow Statement

ALTX quarterly cash flow statement

Metric	TTM	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K	FY1110-K
Operating Cash Flow	-$141K	-$99K-26.9%	-$78K-34.5%	-$58K+55.0%	-$129K-51.8%	-$85K+29.8%	-$121K-2520.0%	$5K+109.1%	-$55K+50.9%	-$112K+4.3%	-$117K-30.0%	-$90K-57.9%	-$57K+5.0%	-$60K+68.1%	-$188K+22.6%	-$243K
Depreciation & Amortization	N/A	$3K-25.0%	$4K-33.3%	$6K-33.3%	$9K+28.6%	$7K-12.5%	$8K-79.5%	$39K+225.0%	$12K-33.3%	$18K-18.2%	$22K+10.0%	$20K+5.3%	$19K-9.5%	$21K-41.7%	$36K+44.0%	$25K
Investing Cash Flow	$49K	$0-100.0%	$525K	$0-100.0%	$450K	$0	$0	$0	$0	$0	N/A	N/A	N/A	N/A	$500K+200.0%	-$500K
Financing Cash Flow	-$12K	-$12K+47.8%	-$23K+66.2%	-$68K	$0+100.0%	-$19K-375.0%	-$4K+69.2%	-$13K+35.0%	-$20K-81.8%	-$11K+31.3%	-$16K-300.0%	-$4K+86.2%	-$29K-314.3%	-$7K+84.1%	-$44K	N/A
Share Buybacks	N/A	$12K-47.8%	$23K-66.2%	$68K	$0-100.0%	$19K+375.0%	$4K-69.2%	$13K-35.0%	$20K+81.8%	$11K-31.3%	$16K+300.0%	$4K-86.2%	-$29K+314.3%	$7K-84.1%	$44K	N/A

Metric	Q3'2610-Q	Q2'2610-Q	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K
Operating Cash Flow	-$53K-82.8%	-$35K-66.7%	-$32K-14.3%	-$21K-110.0%	-$29K+3.3%	-$21K+16.0%	-$28K-115.4%	-$10K-233.3%
Depreciation & Amortization	$1K0.0%	$0-100.0%	$1K0.0%	$0-100.0%	$1K-50.0%	$1K0.0%	$1K0.0%	$1K-50.0%
Investing Cash Flow	$49K	$0	$0	$0	$0-100.0%	$0	$0	$0
Financing Cash Flow	$0	$0	$0	-$12K+47.8%	$0	$0	$0	-$23K0.0%
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A	$23K0.0%

Not reported in any period shown, so not listed: Stock-Based Compensation, Capital Expenditures, Free Cash Flow, Dividends Paid.

ALTX 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.

ALTX quarterly financial ratios

Metric	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K	FY1110-K
Net Margin	-1066.7%	1900.0%	-409.4%	869.4%	-186.4%	-419.4%	-57.1%	-114.1%	-211.5%	-1317.9%	-725.0%	-305.0%	-273.3%	-194.6%	-211.8%
Return on Equity	-14.3%-42.6pp	28.3%+39.8pp	-11.6%-35.1pp	23.5%+31.6pp	-8.1%+3.6pp	-11.6%-9.1pp	-2.5%+3.1pp	-5.6%+3.7pp	-9.3%+14.8pp	-24.1%-5.9pp	-18.2%-4.7pp	-13.5%-2.8pp	-10.6%-0.6pp	-10.1%+0.5pp	-10.6%
Return on Assets	-7.0%-23.0pp	16.0%+21.6pp	-5.6%-18.2pp	12.6%+16.3pp	-3.7%+1.9pp	-5.6%-4.2pp	-1.4%+1.7pp	-3.1%+2.2pp	-5.2%+8.9pp	-14.1%-1.6pp	-12.5%-2.0pp	-10.5%-1.3pp	-9.2%+0.2pp	-9.4%+0.8pp	-10.2%
Current Ratio	2.01-0.3x	2.27+0.4x	1.91-0.2x	2.14+0.3x	1.86-0.1x	1.94-0.2x	2.100.0x	2.10-0.1x	2.18-0.1x	2.29-0.8x	3.05-1.3x	4.34-2.7x	7.01-6.9x	13.91-9.6x	23.50
Debt-to-Equity	1.05+0.3x	0.76-0.3x	1.06+0.2x	0.87-0.3x	1.16+0.1x	1.08+0.2x	0.870.0x	0.84+0.1x	0.78+0.1x	0.71+0.3x	0.45+0.2x	0.28+0.1x	0.15+0.1x	0.070.0x	0.04
Asset Turnover	0.010.0x	0.010.0x	0.010.0x	0.010.0x	0.020.0x	0.010.0x	0.020.0x	0.030.0x	0.020.0x	0.010.0x	0.020.0x	0.030.0x	0.030.0x	0.050.0x	0.05

Metric	Q3'2610-Q	Q2'2610-Q	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K
Net Margin	350.0%	-1175.0%	-428.6%	-800.0%	-240.0%	-800.0%	-2320.0%	-314.3%
Return on Equity	1.6%+2.5pp	-3.7%-1.4pp	-2.3%+5.8pp	-2.4%-1.0pp	-0.9%-32.6pp	-2.3%+0.5pp	-8.1%-6.7pp	-1.4%0.0pp
Return on Assets	0.8%+1.2pp	-1.8%-0.6pp	-1.1%+3.2pp	-1.2%-0.4pp	-0.4%-18.6pp	-1.1%+0.2pp	-4.3%-3.6pp	-0.8%-0.1pp
Current Ratio	1.97-0.1x	1.96-0.1x	2.00-0.1x	2.01-0.3x	2.05-0.2x	2.05+0.2x	2.11+0.2x	2.27+0.4x
Debt-to-Equity	1.08+0.1x	1.10+0.1x	1.06+0.2x	1.05+0.3x	1.01+0.3x	1.02-0.1x	0.88-0.2x	0.76-0.3x
Asset Turnover	0.000.0x	0.000.0x	0.000.0x	0.000.0x	0.000.0x	0.000.0x	0.000.0x	0.000.0x

Not reported in any period shown, so not listed: Gross Margin, Operating Margin, FCF Margin.

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: Net Margin.

Where ALTEX INDUS INC Ranks

Frequently Asked Questions

What is ALTEX INDUS INC's annual revenue?

ALTEX INDUS INC (ALTX) reported $18K in total revenue for fiscal year 2025. This represents a -21.7% 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 ALTEX INDUS INC's revenue growing?

ALTEX INDUS INC (ALTX) revenue declined by 21.7% year-over-year, from $23K to $18K in fiscal year 2025.

Is ALTEX INDUS INC profitable?

No, ALTEX INDUS INC (ALTX) reported a net income of -$192K in fiscal year 2025.

What is ALTEX INDUS INC's return on equity (ROE)?

ALTEX INDUS INC (ALTX) has a return on equity of -14.3% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is ALTEX INDUS INC's operating cash flow?

ALTEX INDUS INC (ALTX) recorded an outflow of $99K in operating cash flow during fiscal year 2025, representing cash used by core business activities.

What are ALTEX INDUS INC's total assets?

ALTEX INDUS INC (ALTX) had $2.7M in total assets as of fiscal year 2025, including both current and long-term assets.

Does ALTEX INDUS INC buy back shares?

Yes, ALTEX INDUS INC (ALTX) spent $12K on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

How many shares does ALTEX INDUS INC have outstanding?

ALTEX INDUS INC (ALTX) had 11M shares outstanding as of fiscal year 2025.

What is ALTEX INDUS INC's current ratio?

ALTEX INDUS INC (ALTX) had a current ratio of 2.01 as of fiscal year 2025, which is generally considered healthy.

What is ALTEX INDUS INC's debt-to-equity ratio?

ALTEX INDUS INC (ALTX) had a debt-to-equity ratio of 1.05 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is ALTEX INDUS INC's return on assets (ROA)?

ALTEX INDUS INC (ALTX) had a return on assets of -7.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is ALTEX INDUS INC's P/E ratio?

ALTEX INDUS INC (ALTX) has no price-to-earnings ratio at the moment: net loss, so no earnings multiple (trailing 12 months to June 30, 2026). The market capitalization is $1.9M as of Sep 17, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

What is ALTEX INDUS INC's price-to-sales ratio?

ALTEX INDUS INC (ALTX) trades at 90.6x sales, its market capitalization divided by revenue of $21K revenue, trailing 12 months to June 30, 2026. The market capitalization is $1.9M as of Sep 17, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

What is ALTEX INDUS INC's Piotroski F-Score?

ALTEX INDUS INC (ALTX) has a Piotroski F-Score of 2 out of 7 computable signals; 2 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.

Are ALTEX INDUS INC's earnings high quality?

ALTEX INDUS INC (ALTX) reported a net loss of $192K while operations used $99K of cash. With neither figure positive, the ratio between the two carries no quality signal. 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.