What is Alerian MLP Index ETN's earnings per share (EPS)?

Alerian MLP Index ETN (AMJB) reported diluted earnings per share of $20.02 for fiscal year 2025. This represents a 1.4% 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.

Alerian MLP Index ETN Financials

AMJB

FY2025 annual

Revenue $182.4B +2.8% YoY

Net Income $57.0B -2.6% YoY

EPS (Diluted) $20.02 +1.4% YoY

Free Cash Flow Not reported for FY2025

Source SEC Filings (10-K/10-Q) Data as of Jun 30, 2026 Currency USD FYE December

Alerian MLP Index ETN (AMJB) reported $182.4B in revenue for fiscal year 2025, up 2.8% from the prior fiscal year. 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 AMJB FY2025 2026-08-06

Heavy balance-sheet leverage turns a low-asset-yield model into decent equity returns, while cash generation has become the weak link.

From FY2023 to FY2025, net income stayed near $50B and ROE stayed in the mid-teens. Yet operating cash flow was -$147.8B in FY2025 and required $269.5B of financing inflow, showing reported profit and cash generation are being driven by different mechanics: earnings look stable while liquidity depends heavily on funding flows and balance-sheet movements.

FY2025 shows $4.42T of assets against only $362.4B of equity, so the company is funded mostly by liabilities. That structure turned a 1.3% return on assets into a 15.7% return on equity, meaning the balance sheet, not wide operating margins, is doing most of the lifting.

Capital returns became more aggressive as buybacks rose from $9.8B in FY2023 to $31.6B in FY2025. Shares outstanding fell 6.4%, so part of the improvement in per-share results came from a smaller share base, not just from a larger earnings pool.

Financial Health Signals

Financial health score not available

Alerian MLP Index ETN 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

2/6

Alerian MLP Index ETN passes 2 of 6 computable financial strength tests (3 of the nine could not be computed from available data). 1 of 4 profitability signals pass, all 1 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality No Cash Backing

$2.59used

For every $1 of reported earnings, Alerian MLP Index ETN used $2.59 of operating cash (-$147.8B OCF vs $57.0B net income). Earnings that no cash stands behind rest on accounting accruals, which cannot be repeated indefinitely.

Key Financial Metrics

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Earnings & Revenue

Revenue

$182.4B

YoY+2.8%

5Y CAGR+8.7%

10Y CAGR+6.9%

Alerian MLP Index ETN generated $182.4B in revenue in fiscal year 2025. This represents an increase of 2.8% from the prior year.

Net Income

$57.0B

YoY-2.6%

5Y CAGR+14.4%

10Y CAGR+8.8%

Alerian MLP Index ETN reported $57.0B in net income in fiscal year 2025. This represents a decrease of 2.6% from the prior year.

EPS (Diluted)

$20.02

YoY+1.4%

5Y CAGR+17.7%

10Y CAGR+12.8%

Alerian MLP Index ETN earned $20.02 per diluted share (EPS) in fiscal year 2025. This represents an increase of 1.4% from the prior year.

EBITDA

Not reported for fiscal year 2025.

Cash & Balance Sheet

Cash & Debt

$343.3B

YoY-26.8%

5Y CAGR-8.2%

10Y CAGR-0.5%

Alerian MLP Index ETN held $343.3B in cash as of fiscal year 2025; long-term debt is not reported for that period.

Dividends Per Share

$5.80

YoY+20.8%

5Y CAGR+10.0%

10Y CAGR+12.9%

Alerian MLP Index ETN paid $5.80 per share in dividends in fiscal year 2025. This represents an increase of 20.8% from the prior year.

Shares Outstanding

2.70B

YoY-3.5%

5Y CAGR-2.4%

10Y CAGR-3.0%

Alerian MLP Index ETN had 2.70B shares outstanding in fiscal year 2025. This represents a decrease of 3.5% from the prior year.

Free Cash Flow

Not reported for fiscal year 2025.

Margins & Returns

Net Margin

31.2%

YoY-1.7pp

5Y CAGR+7.0pp

10Y CAGR+5.1pp

Alerian MLP Index ETN's net profit margin was 31.2% in fiscal year 2025, showing the share of revenue converted to profit. This is down 1.7 percentage points from the prior year.

Return on Equity

15.7%

YoY-1.2pp

5Y CAGR+5.3pp

10Y CAGR+5.9pp

Alerian MLP Index ETN's ROE was 15.7% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 1.2 percentage points from the prior year.

Gross Margin

Not reported for fiscal year 2025.

Operating Margin

Not reported for fiscal year 2025.

Capital Allocation

Share Buybacks

$31.6B

YoY+67.8%

5Y CAGR+37.1%

10Y CAGR+18.9%

Alerian MLP Index ETN spent $31.6B on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 67.8% from the prior year.

R&D Spending

Not reported for fiscal year 2025.

Capital Expenditures

Not reported for fiscal year 2025.

AMJB Income Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

AMJB annual income statement

Metric	TTM	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18	FY17	FY16	FY15	FY14	FY13	FY12	FY11
Revenue	$199.4B	$182.4B+2.8%	$177.6B+12.3%	$158.1B+22.9%	$128.7B+5.8%	$121.6B+1.4%	$120.0B+3.7%	$115.7B+6.4%	$108.8B+8.0%	$100.7B+4.3%	$96.6B+3.2%	$93.5B-1.6%	$95.1B-2.3%	$97.4B+0.3%	$97.0B-0.2%	$97.2B
SG&A Expenses	$57.2B	$54.5B+6.1%	$51.4B+10.5%	$46.5B+11.6%	$41.6B+8.0%	$38.6B+10.2%	$35.0B+2.4%	$34.2B+3.1%	$33.1B+6.1%	$31.2B+3.3%	$30.2B+1.5%	$29.8B-1.4%	$30.2B-2.1%	$30.8B+0.7%	$30.6B+5.3%	$29.0B
Interest Expense	$98.2B	$97.9B-3.4%	$101.3B+24.6%	$81.3B+211.6%	$26.1B+370.0%	$5.6B-44.2%	$10.0B-62.8%	$26.8B+27.3%	$21.0B+51.7%	$13.9B+41.3%	$9.8B+31.6%	$7.5B-5.5%	$7.9B-15.5%	$9.3B-15.3%	$11.0B-18.8%	$13.6B
Income Tax	$18.8B	$15.5B-6.4%	$16.6B+37.7%	$12.1B+42.0%	$8.5B-24.4%	$11.2B+68.0%	$6.7B-20.8%	$8.4B+1.7%	$8.3B-27.7%	$11.5B+16.9%	$9.8B+56.6%	$6.3B-30.1%	$9.0B+1.9%	$8.8B+15.1%	$7.6B-1.8%	$7.8B
Net Income	$65.0B	$57.0B-2.6%	$58.5B+17.9%	$49.6B+31.6%	$37.7B-21.9%	$48.3B+65.8%	$29.1B-20.0%	$36.4B+12.2%	$32.5B+32.9%	$24.4B-1.2%	$24.7B+1.2%	$24.4B+12.4%	$21.7B+21.6%	$17.9B-16.0%	$21.3B+12.2%	$19.0B
EPS (Diluted)	—	$20.02+1.4%	$19.75+21.7%	$16.23+34.2%	$12.09-21.3%	$15.36+73.0%	$8.88-17.2%	$10.72+19.1%	$9.00+42.6%	$6.31+1.9%	$6.19+3.2%	$6.00+13.4%	$5.29+21.9%	$4.34-16.5%	$5.20+16.1%	$4.48

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Revenue	$57.3B+15.1%	$49.8B+8.8%	$45.8B-1.4%	$46.4B+3.4%	$44.9B-0.9%	$45.3B+5.9%	$42.8B+0.3%	$42.7B
SG&A Expenses	$15.2B-1.2%	$15.3B+16.9%	$13.1B-3.3%	$13.6B-1.1%	$13.7B-2.7%	$14.1B+13.0%	$12.5B-2.7%	$12.8B
Interest Expense	$25.1B+5.4%	$23.8B+0.1%	$23.8B-6.5%	$25.5B+1.8%	$25.0B+6.2%	$23.6B-2.6%	$24.2B-10.3%	$27.0B
Income Tax	$6.4B+59.6%	$4.0B-3.6%	$4.1B-4.9%	$4.3B+31.9%	$3.3B-12.4%	$3.8B+11.7%	$3.4B-17.4%	$4.1B
Net Income	$21.2B+28.3%	$16.5B+27.1%	$13.0B-9.8%	$14.4B-4.0%	$15.0B+2.3%	$14.6B+4.3%	$14.0B+8.8%	$12.9B
EPS (Diluted)	$7.70+29.6%	$5.94	N/A	$5.07-3.2%	$5.24+3.4%	$5.07	N/A	$4.37

Not reported in any period shown, so not listed: Cost of Revenue, Gross Profit, R&D Expenses, Operating Income.

TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.

AMJB Balance Sheet

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

AMJB annual balance sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18	FY17	FY16	FY15	FY14	FY13	FY12	FY11
Total Assets	$4.4T+10.5%	$4.0T+3.3%	$3.9T+5.7%	$3.7T-2.1%	$3.7T+10.6%	$3.4T+26.0%	$2.7T+2.4%	$2.6T+3.5%	$2.5T+1.7%	$2.5T+5.9%	$2.4T-8.6%	$2.6T+6.5%	$2.4T+2.4%	$2.4T+4.1%	$2.3T
Cash & Equivalents	$343.3B-26.8%	$469.3B-24.8%	$624.2B+10.0%	$567.2B-23.4%	$740.8B+40.4%	$527.6B+100.1%	$263.6B-5.4%	$278.8B-35.4%	$431.3B+10.3%	$391.2B+8.1%	$361.7B	N/A	N/A	N/A	N/A
Goodwill	$52.7B+0.3%	$52.6B-0.1%	$52.6B+1.9%	$51.7B+2.7%	$50.3B+2.2%	$49.2B+3.0%	$47.8B+0.7%	$47.5B-0.1%	$47.5B+0.5%	$47.3B-0.1%	$47.3B-0.7%	$47.6B-0.9%	$48.1B-0.2%	$48.2B0.0%	$48.2B
Total Liabilities	$4.1T+11.1%	$3.7T+3.1%	$3.5T+5.2%	$3.4T-2.2%	$3.4T+11.1%	$3.1T+28.0%	$2.4T+2.5%	$2.4T+3.9%	$2.3T+1.8%	$2.2T+6.3%	$2.1T-10.1%	$2.3T+6.2%	$2.2T+2.3%	$2.2T+3.5%	$2.1T
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	$267.9B+7.6%	$249.0B-3.0%	$256.8B
Total Equity	$362.4B+5.1%	$344.8B+5.1%	$327.9B+12.2%	$292.3B-0.6%	$294.1B+5.3%	$279.4B+6.9%	$261.3B+1.9%	$256.5B+0.3%	$255.7B+0.6%	$254.2B+2.7%	$247.6B+6.8%	$231.7B+9.7%	$211.2B+3.5%	$204.1B+11.2%	$183.6B
Retained Earnings	$416.1B+10.6%	$376.2B+13.0%	$332.9B+12.3%	$296.5B+8.9%	$272.3B+14.9%	$237.0B+6.2%	$223.2B+12.1%	$199.2B+12.1%	$177.7B+9.4%	$162.4B+10.9%	$146.4B+12.7%	$130.0B+12.3%	$115.8B+11.1%	$104.2B+18.0%	$88.3B

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Total Assets	$5.0T+2.3%	$4.9T+10.7%	$4.4T-3.0%	$4.6T+0.2%	$4.6T+4.5%	$4.4T+8.9%	$4.0T-4.9%	$4.2T
Cash & Equivalents	$309.8B-0.7%	$312.1B-9.1%	$343.3B+13.2%	$303.4B-27.8%	$420.3B-1.3%	$425.9B-9.3%	$469.3B+8.1%	$434.3B
Goodwill	$52.7B0.0%	$52.7B0.0%	$52.7B0.0%	$52.7B-0.1%	$52.7B+0.2%	$52.6B+0.1%	$52.6B-0.3%	$52.7B
Total Liabilities	$4.6T+2.3%	$4.5T+11.7%	$4.1T-3.3%	$4.2T+0.1%	$4.2T+4.7%	$4.0T+9.5%	$3.7T-5.3%	$3.9T
Total Equity	$374.6B+2.9%	$364.0B+0.4%	$362.4B+0.6%	$360.2B+0.9%	$356.9B+1.6%	$351.4B+1.9%	$344.8B-0.3%	$345.8B
Retained Earnings	$445.0B+3.9%	$428.2B+2.9%	$416.1B+2.1%	$407.4B+2.5%	$397.4B+2.8%	$386.6B+2.8%	$376.2B+2.8%	$366.0B

Not reported in any period shown, so not listed: Current Assets, Inventory, Accounts Receivable, Current Liabilities.

AMJB Cash Flow Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

AMJB annual cash flow statement

Metric	TTM	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18	FY17	FY16	FY15	FY14	FY13	FY12	FY11
Operating Cash Flow	-$162.5B	-$147.8B-251.8%	-$42.0B-423.8%	$13.0B-87.9%	$107.1B+37.2%	$78.1B+197.7%	-$79.9B-2052.8%	$4.1B-73.8%	$15.6B+244.2%	-$10.8B-149.5%	$21.9B-70.2%	$73.5B+100.8%	$36.6B-66.1%	$108.0B+330.5%	$25.1B-73.9%	$95.9B
Investing Cash Flow	-$185.8B	-$265.6B-62.5%	-$163.4B-341.6%	$67.6B+149.1%	-$137.8B-6.6%	-$129.3B+50.6%	-$261.9B-403.1%	-$52.1B+73.9%	-$199.4B-805.9%	$28.2B+131.7%	-$89.2B-183.4%	$107.0B+164.6%	-$165.6B-10.1%	-$150.5B-25.6%	-$119.8B+29.8%	-$170.8B
Financing Cash Flow	$248.1B	$269.5B+324.8%	$63.4B+348.1%	-$25.6B+79.7%	-$126.3B-145.7%	$276.0B-53.7%	$596.6B+1708.7%	$33.0B-3.4%	$34.2B+133.3%	$14.6B-85.1%	$98.3B+152.4%	-$187.5B-258.6%	$118.2B+317.4%	$28.3B-67.7%	$87.7B-18.6%	$107.7B
Dividends Paid	$17.3B	$16.6B+12.5%	$14.8B+9.8%	$13.5B-0.7%	$13.6B+5.5%	$12.9B+1.3%	$12.7B+2.8%	$12.3B+22.1%	$10.1B+12.4%	$9.0B+6.1%	$8.5B+7.7%	$7.9B+12.6%	$7.0B+15.4%	$6.1B+16.6%	$5.2B+33.4%	$3.9B
Share Buybacks	$31.7B	$31.6B+67.8%	$18.8B+91.7%	$9.8B+210.7%	$3.2B-82.8%	$18.4B+182.5%	$6.5B-72.8%	$24.0B+20.1%	$20.0B+29.7%	$15.4B+69.7%	$9.1B+61.7%	$5.6B	N/A	N/A	N/A	N/A

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Operating Cash Flow	-$25.3B+88.1%	-$211.8B-276.9%	$119.7B+364.8%	-$45.2B-253.0%	$29.5B+111.7%	-$251.8B-270.4%	$147.8B+299.5%	-$74.1B
Investing Cash Flow	$6.4B+102.9%	-$217.8B-564.5%	$46.9B+320.0%	-$21.3B+87.7%	-$173.1B-46.6%	-$118.1B-770.1%	$17.6B+140.6%	-$43.4B
Financing Cash Flow	$18.8B-95.3%	$400.7B+424.3%	-$123.6B-158.6%	-$47.8B-138.9%	$122.8B-61.4%	$318.1B+374.9%	-$115.7B-1176.7%	$10.7B
Dividends Paid	$4.3B-0.7%	$4.4B-1.0%	$4.4B+5.7%	$4.2B-0.6%	$4.2B+10.0%	$3.8B-0.9%	$3.9B+5.6%	$3.7B
Share Buybacks	$6.8B-18.5%	$8.3B+0.7%	$8.3B-0.3%	$8.3B+10.5%	$7.5B-0.3%	$7.5B+75.0%	$4.3B-32.4%	$6.4B

Not reported in any period shown, so not listed: Capital Expenditures, Free Cash Flow.

AMJB Financial Ratios

Margins and returns are percentages; the remaining ratios are unitless multiples.

AMJB annual financial ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18	FY17	FY16	FY15	FY14	FY13	FY12	FY11
Net Margin	31.2%-1.7pp	33.0%+1.6pp	31.4%+2.1pp	29.3%-10.4pp	39.7%+15.4pp	24.3%-7.2pp	31.5%+1.6pp	29.8%+5.6pp	24.3%-1.3pp	25.6%-0.5pp	26.1%+3.3pp	22.9%+4.5pp	18.4%-3.6pp	21.9%+2.4pp	19.5%
Return on Equity	15.7%-1.2pp	17.0%+1.8pp	15.1%+2.2pp	12.9%-3.5pp	16.4%+6.0pp	10.4%-3.5pp	13.9%+1.3pp	12.7%+3.1pp	9.6%-0.2pp	9.7%-0.1pp	9.9%+0.5pp	9.4%+0.9pp	8.5%-2.0pp	10.4%+0.1pp	10.3%
Return on Assets	1.3%-0.2pp	1.5%+0.2pp	1.3%+0.3pp	1.0%-0.3pp	1.3%+0.4pp	0.9%-0.5pp	1.4%+0.1pp	1.2%+0.3pp	1.0%0.0pp	1.0%0.0pp	1.0%+0.2pp	0.9%+0.1pp	0.7%-0.2pp	0.9%+0.1pp	0.8%
Debt-to-Equity	11.21+0.6x	10.61-0.2x	10.82-0.7x	11.54-0.2x	11.73+0.6x	11.12+1.8x	9.28+0.1x	9.22+0.3x	8.91+0.1x	8.80+0.3x	8.50-1.6x	10.10+8.8x	1.270.0x	1.22-0.2x	1.40

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Net Margin	36.9%+3.8pp	33.1%+4.8pp	28.3%-2.7pp	31.0%-2.4pp	33.4%+1.1pp	32.3%-0.5pp	32.8%+2.6pp	30.2%
Return on Equity	5.7%+1.1pp	4.5%+1.0pp	3.6%-0.4pp	4.0%-0.2pp	4.2%0.0pp	4.2%+0.1pp	4.1%+0.3pp	3.7%
Return on Assets	0.4%+0.1pp	0.3%+0.1pp	0.3%0.0pp	0.3%0.0pp	0.3%0.0pp	0.3%0.0pp	0.4%0.0pp	0.3%
Debt-to-Equity	12.39-0.1x	12.46+1.3x	11.21-0.5x	11.66-0.1x	11.75+0.4x	11.40+0.8x	10.61-0.6x	11.17

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

Where Alerian MLP Index ETN Ranks

Frequently Asked Questions

What is Alerian MLP Index ETN's annual revenue?

Alerian MLP Index ETN (AMJB) reported $182.4B in total revenue for fiscal year 2025. This represents a 2.8% 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 Alerian MLP Index ETN's revenue growing?

Alerian MLP Index ETN (AMJB) revenue grew by 2.8% year-over-year, from $177.6B to $182.4B in fiscal year 2025.

Is Alerian MLP Index ETN profitable?

Yes, Alerian MLP Index ETN (AMJB) reported a net income of $57.0B in fiscal year 2025, with a net profit margin of 31.2%.

What is Alerian MLP Index ETN's net profit margin?

Alerian MLP Index ETN (AMJB) had a net profit margin of 31.2% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Does Alerian MLP Index ETN pay dividends?

Yes, Alerian MLP Index ETN (AMJB) paid $5.80 per share in dividends during fiscal year 2025.

What is Alerian MLP Index ETN's return on equity (ROE)?

Alerian MLP Index ETN (AMJB) has a return on equity of 15.7% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Alerian MLP Index ETN's operating cash flow?

Alerian MLP Index ETN (AMJB) recorded an outflow of $147.8B in operating cash flow during fiscal year 2025, representing cash used by core business activities.

What are Alerian MLP Index ETN's total assets?

Alerian MLP Index ETN (AMJB) had $4.4T in total assets as of fiscal year 2025, including both current and long-term assets.

Does Alerian MLP Index ETN buy back shares?

Yes, Alerian MLP Index ETN (AMJB) spent $31.6B on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

How many shares does Alerian MLP Index ETN have outstanding?

Alerian MLP Index ETN (AMJB) had 2.70B shares outstanding as of fiscal year 2025.

What is Alerian MLP Index ETN's debt-to-equity ratio?

Alerian MLP Index ETN (AMJB) had a debt-to-equity ratio of 11.21 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Alerian MLP Index ETN's return on assets (ROA)?

Alerian MLP Index ETN (AMJB) had a return on assets of 1.3% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Alerian MLP Index ETN's cash runway?

Based on fiscal year 2025 data, Alerian MLP Index ETN (AMJB) had $343.3B in cash against an annual operating cash burn of $147.8B. This gives an estimated cash runway of approximately 28 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.

What is Alerian MLP Index ETN's Piotroski F-Score?

Alerian MLP Index ETN (AMJB) has a Piotroski F-Score of 2 out of 6 computable signals; 3 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 Alerian MLP Index ETN's earnings high quality?

For every $1 of reported earnings, Alerian MLP Index ETN (AMJB) used $2.59 of operating cash (-$147.8B OCF vs $57.0B net income). Earnings that no cash stands behind rest on accounting accruals, which cannot be repeated indefinitely. 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.