What is Artelo Biosciences, Inc.'s earnings per share (EPS)?

Artelo Biosciences, Inc. (ARTL) reported diluted earnings per share of -$37.75 for fiscal year 2025. 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.

Artelo Biosciences, Inc. (ARTL) Financials

ARTL

FY2025 annual

Revenue Not reported for FY2025

Net Income -$12.9M -31.1% YoY

EPS (Diluted) -$37.75 YoY not available

Operating Cash Flow -$8.5M -2.0% YoY

Market Cap $1.7M as of Oct 12, 2026

Price / Sales n/m no revenue reported

Price / Earnings n/m net loss, so no earnings multiple, FY2025

Price / Book 0.3x on $5.0M equity, Q2 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 Oct 12, 2026; every other figure is from the SEC filings on this page. Not financial advice.

Source SEC Filings (10-K/10-Q) Latest period Q2 FY2026, ended Jun 30, 2026 Reported Aug 12, 2026 Currency USD FYE December

Newest figures come from the 10-Q for Q2 FY2026, filed Aug 12, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the ARTL SEC filings page.

This page shows Artelo Biosciences, Inc. (ARTL) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 12 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 ARTL FY2025 2026-10-03

The statements depict a research-funded business whose annual cash needs persist while its asset base has contracted into negative equity.

Between FY2024 and FY2025, total assets fell from $4.7M to $2.8M while operating cash outflow widened from $8.4M to $8.5M, indicating balance-sheet depletion without a corresponding improvement in cash economics. Financing provided $6.9M in FY2025 against $8.5M of operating cash outflow, yet liabilities reached $4.1M against $2.8M of assets, so external funding did not prevent a negative-equity position.

FY2025 operating costs were essentially the loss: R&D consumed $5.4M and SG&A $6.0M, together matching the $11.4M operating loss. That pattern is consistent with a company still funding development and administration before revenue is visible in these statements, rather than an operating model scaled by sales.

Liquidity tightened sharply: the current ratio was 0.2x, and the reported cash-and-investment comparison equaled 0.8 months of FY2025 operating outflow. With current liabilities of $4.0M and current assets of $695K, the balance sheet shows short-term obligations exceeding immediately reported current resources.

Financial Health Signals

Financial health score not available

Artelo Biosciences, 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

2/6

Artelo Biosciences, Inc. 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, 1 of 2 leverage/liquidity signals pass.

Earnings Quality No Cash Backing

N/A

Artelo Biosciences, Inc. reported a net loss of $12.9M while operations used $8.5M of cash. With neither figure positive, the ratio between the two carries no quality signal.

Interest Coverage At Risk

N/A

Artelo Biosciences, Inc. reported an operating loss of $11.4M against $194K in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.

Key Financial Metrics

Export CSV

Earnings & Revenue

Net Income

-$2.4M

YoY+24.7%

QoQ+18.0%

Artelo Biosciences, Inc. reported -$2.4M in net income in Q2 2026. This represents an increase of 24.7% from the same quarter a year earlier. Against the prior quarter it is up 18.0%.

EPS (Diluted)

-$0.89

Artelo Biosciences, Inc. earned -$0.89 per diluted share (EPS) in Q2 2026.

Revenue

Not reported for Q2 2026.

EBITDA

Not reported for Q2 2026.

Cash & Balance Sheet

Cash & Debt

$4.2M

YoY+103.2%

QoQ0.0%

5Y CAGR-7.8%

10Y CAGR+102.7%

Artelo Biosciences, Inc. held $4.2M in cash as of Q2 2026; long-term debt is not reported for that period.

Shares Outstanding

5Y CAGR-28.4%

10Y CAGR-5.0%

Artelo Biosciences, Inc. had 5M shares outstanding in Q2 2026.

Free Cash Flow

Not reported for Q2 2026.

Dividends Per Share

Not reported for Q2 2026.

Margins & Returns

Return on Equity

-48.6%

QoQ-4.2pp

Artelo Biosciences, Inc.'s ROE was -48.6% in Q2 2026, measuring profit generated per dollar of shareholder equity. Against the prior quarter it is down 4.2 percentage points.

Gross Margin

Not reported for Q2 2026.

Operating Margin

Not reported for Q2 2026.

Net Margin

Not reported for Q2 2026.

Capital Allocation

R&D Spending

$876K

YoY-53.2%

QoQ+13.3%

Artelo Biosciences, Inc. invested $876K in research and development in Q2 2026. This represents a decrease of 53.2% from the same quarter a year earlier. Against the prior quarter it is up 13.3%.

Share Buybacks

Not reported for Q2 2026.

Capital Expenditures

Not reported for Q2 2026.

ARTL 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.

ARTL quarterly income statement

Metric	TTM	FY2510-K	FY2410-K	FY238-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K
R&D Expenses	N/A	$5.4M-9.5%	$6.0M+5.2%	$5.7M+31.7%	$4.3M+14.3%	$3.8M+97.2%	$1.9M+75.7%	$1.1M-12.6%	$1.2M	N/A	N/A	N/A	N/A
SG&A Expenses	N/A	$6.0M+45.3%	$4.1M-2.8%	$4.2M-29.0%	$6.0M+5.9%	$5.6M+103.6%	$2.8M+190.5%	$952K+87.4%	$508K+358.5%	$111K+14642.7%	$752+47.7%	$509-88.1%	$4K
Operating Income	N/A	-$11.4M-12.8%	-$10.1M-1.8%	-$9.9M+3.5%	-$10.3M-9.2%	-$9.4M-101.0%	-$4.7M-46.0%	-$3.2M	N/A	-$233K	N/A	-$15K+0.2%	-$15K
EBITDA	N/A	N/A	N/A	N/A	N/A	N/A	-$4.7M-46.0%	-$3.2M	N/A	N/A	N/A	N/A	N/A
Interest Expense	N/A	$194K	$0	$0-100.0%	$5K	$0	N/A	N/A	N/A	$2K	N/A	N/A	N/A
Income Tax	N/A	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	N/A	N/A
Net Income	N/A	-$12.9M-31.1%	-$9.8M-5.8%	-$9.3M+7.9%	-$10.1M-7.2%	-$9.4M-102.1%	-$4.7M-114.3%	-$2.2M	N/A	-$235K	N/A	-$15K+0.2%	-$15K
EPS (Basic)	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-$1.00+45.7%	-$1.84	N/A	N/A	N/A	N/A
EPS (Diluted)	—	-$37.75	-$54.89	-$18.80	N/A	N/A	N/A	-$1.46	-$1.84	N/A	N/A	N/A	N/A
Diluted Shares (Avg)	N/A	343,000	179,000	494,000	N/A	N/A	N/A	2M	1M-33.7%	2M	N/A	N/A	N/A

Metric	Q2'2610-Q	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q
R&D Expenses	$876K-53.2%	$773K-44.1%	N/A	$1.3M+292.3%	$1.9M+11.0%	$1.4M-8.2%	N/A	$325K-79.5%
SG&A Expenses	$1.6M+27.4%	$1.9M+92.6%	N/A	$1.8M+108.5%	$1.3M+54.7%	$995K-8.0%	N/A	$870K-15.5%
Operating Income	-$2.5M+20.5%	-$2.7M-13.0%	N/A	-$3.1M-158.5%	-$3.1M-25.4%	-$2.4M+8.1%	N/A	-$1.2M+54.3%
Interest Expense	$6K-91.7%	$100K	N/A	$111K	$72K	$0	N/A	$0
Income Tax	$0	N/A	N/A	$0	$0	$0	N/A	$0
Net Income	-$2.4M+24.7%	-$3.0M-24.7%	N/A	-$3.1M-175.6%	-$3.2M-32.4%	-$2.4M+4.5%	N/A	-$1.1M+53.8%
EPS (Diluted)	-$0.89	-$4.00	-$0.04+99.4%	-$3.97-89.0%	-$16.86	-$12.55	-$7.02-609.1%	-$2.10
Diluted Shares (Avg)	3M	739,000	N/A	787,000+46.3%	191,000	189,000	N/A	538,000

Not reported in any period shown, so not listed: Revenue, Cost of Revenue, Gross Profit, EBITDA, EPS (Basic).

ARTL Balance Sheet

ARTL quarterly balance sheet

Metric	FY2510-K	FY2410-K	FY238-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K
Total Assets	$2.8M-40.4%	$4.7M-64.0%	$13.0M-36.1%	$20.4M-27.7%	$28.3M+545.6%	$4.4M-32.5%	$6.5M+1532.9%	$397K-30.9%	$574K+15896.5%	$4K-78.9%	$17K+15.6%	$15K
Current Assets	$695K-72.8%	$2.6M-76.7%	$11.0M-40.1%	$18.3M-25.5%	$24.6M+953.0%	$2.3M-47.4%	$4.4M+1020.6%	$396K-31.0%	$574K+15896.5%	$4K-78.9%	$17K+15.6%	$15K
Cash & Equivalents	$600K-74.3%	$2.3M-16.9%	$2.8M-59.1%	$6.9M-43.4%	$12.2M+467.8%	$2.1M-51.6%	$4.4M+1211.1%	$337K-41.1%	$573K+15854.7%	$4K-78.9%	$17K+15.6%	$15K
Short-Term Investments	$0	$0-100.0%	$7.6M-16.8%	$9.2M-23.4%	$12.0M	$0	$0	$0	$0	$0	$0	$0
Long-Term Investments	$0	$0-100.0%	$7.6M-16.8%	$9.2M-23.4%	$12.0M	$0	$0	$0	$0	$0	$0	$0
Total Liabilities	$4.1M+121.2%	$1.8M+42.6%	$1.3M+26.4%	$1.0M-5.8%	$1.1M+116.4%	$501K-51.0%	$1.0M+92.3%	$532K+1707.1%	$29K+69.3%	$17K+900.0%	$2K	$0
Current Liabilities	$4.0M+128.2%	$1.8M+37.3%	$1.3M+29.4%	$998K-2.8%	$1.0M+105.0%	$501K-51.0%	$1.0M+92.0%	$532K+1707.1%	$29K+69.3%	$17K+900.0%	$2K	N/A
Non-Current Liabilities	$29K-58.0%	$69K	$0-100.0%	$23K-59.6%	$57K	$0-100.0%	$1K	$0	$0	$0	$0	N/A
Total Equity	-$1.3M-144.5%	$2.9M-75.7%	$11.8M-39.4%	$19.4M-28.6%	$27.2M+601.1%	$3.9M-29.0%	$5.5M+4145.2%	-$135K-124.8%	$545K+4048.1%	-$14K-186.8%	$16K+7.9%	$15K
Retained Earnings	-$63.0M-25.7%	-$50.1M-24.4%	-$40.3M-29.9%	-$31.0M-48.2%	-$20.9M-121.2%	-$9.5M-96.8%	-$4.8M-82.3%	-$2.6M-794.2%	-$295K-390.2%	-$60K-97.3%	-$31K-99.8%	-$15K

Metric	Q2'2610-Q	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q
Total Assets	$6.5M+48.2%	$12.5M+256.1%	$2.8M-40.4%	$4.3M-40.2%	$4.4M-47.7%	$3.5M-66.1%	$4.7M-64.0%	$7.1M-54.0%
Current Assets	$4.4M+95.7%	$10.4M+654.1%	$695K-72.8%	$1.8M-63.4%	$2.2M-63.8%	$1.4M-83.1%	$2.6M-76.7%	$5.0M-62.9%
Cash & Equivalents	$4.2M+103.2%	$4.2M+462.7%	$600K-74.3%	$1.7M-60.5%	$2.1M+134.5%	$746K-37.6%	$2.3M-16.9%	$4.4M+65.1%
Short-Term Investments	$0	$0	$0	$0-100.0%	$0-100.0%	$0-100.0%	$0-100.0%	$500K-95.1%
Long-Term Investments	$0	$0	$0	$0-100.0%	$0	$0	$0-100.0%	$500K-95.1%
Total Liabilities	$1.5M-74.6%	$5.8M+104.2%	$4.1M+121.2%	$4.9M+532.3%	$5.8M+461.1%	$2.9M+250.4%	$1.8M+42.6%	$775K-15.9%
Current Liabilities	$1.5M-74.5%	$5.8M+107.8%	$4.0M+128.2%	$4.9M+597.3%	$5.7M+507.7%	$2.8M+288.9%	$1.8M+37.3%	$697K-24.3%
Non-Current Liabilities	$7K-86.3%	$18K-69.5%	$29K-58.0%	$40K-48.7%	$51K-41.4%	$59K-38.5%	$69K	$78K
Total Equity	$5.0M+455.4%	$6.7M+923.3%	-$1.3M-144.5%	-$633K-110.0%	-$1.4M-119.3%	$652K-93.2%	$2.9M-75.7%	$6.4M-56.4%
Retained Earnings	-$68.4M-22.7%	-$66.0M-25.6%	-$63.0M-25.7%	-$58.8M-26.9%	-$55.7M-23.2%	-$52.5M-22.7%	-$50.1M-24.4%	-$46.4M-24.5%

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

ARTL Cash Flow Statement

ARTL quarterly cash flow statement

Metric	TTM	FY2510-K	FY2410-K	FY238-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K
Operating Cash Flow	-$12.6M	-$8.5M-2.0%	-$8.3M-1.7%	-$8.2M-2.5%	-$8.0M-30.4%	-$6.1M-41.3%	-$4.3M-55.7%	-$2.8M-73.5%	-$1.6M-642.6%	-$217K	N/A	-$14K+11.6%	-$15K
Depreciation & Amortization	N/A	N/A	N/A	N/A	N/A	N/A	$500-2.0%	$510+80.9%	$282	N/A	N/A	N/A	N/A
Stock-Based Compensation	N/A	$1.1M+39.6%	$818K-19.8%	$1.0M-58.5%	$2.5M+60.5%	$1.5M+301.8%	$381K-10.4%	$425K+46.6%	$290K+8603.6%	$3K	N/A	N/A	N/A
Investing Cash Flow	N/A	-$62K-100.8%	$7.8M+121.5%	$3.5M+18.6%	$3.0M+186.0%	-$3.4M	$0+100.0%	-$1.5M-177496.2%	-$845	N/A	N/A	N/A	N/A
Financing Cash Flow	$14.8M	$6.9M+6031.3%	$112K-80.2%	$567K	$0-100.0%	$14.1M+612.4%	$2.0M-76.4%	$8.4M+503.4%	$1.4M+76.8%	$785K	N/A	N/A	N/A

Metric	Q2'2610-Q	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q
Operating Cash Flow	-$5.0M-879.2%	-$1.2M+25.4%	-$2.9M-13.4%	-$3.5M-349.6%	-$514K+75.1%	-$1.6M+45.7%	-$2.6M+1.1%	-$778K+56.8%
Stock-Based Compensation	N/A	$401K+108.9%	N/A	$432K+106.7%	$150K-23.1%	$192K-9.9%	N/A	$209K-5.9%
Investing Cash Flow	N/A	N/A	$188K-62.4%	-$250K-105.9%	$0-100.0%	$0-100.0%	$500K-81.8%	$4.3M+332.0%
Financing Cash Flow	-$1.1M-158.6%	$10.9M	$1.6M+2719.3%	$3.4M	$1.8M	$0-100.0%	$57K+78.1%	$0-100.0%

Not reported in any period shown, so not listed: Depreciation & Amortization, Capital Expenditures, Free Cash Flow, Dividends Paid, Share Buybacks.

ARTL 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.

ARTL quarterly financial ratios

Metric	FY2510-K	FY2410-K	FY238-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K
Return on Equity	N/A	-343.9%-264.9pp	-79.0%-27.1pp	-52.0%-17.3pp	-34.6%+85.5pp	-120.1%-80.4pp	-39.8%	N/A	-43.1%	N/A	-95.9%+7.7pp	-103.6%
Return on Assets	-459.8%-250.7pp	-209.1%-137.9pp	-71.2%-21.9pp	-49.4%-16.1pp	-33.3%+73.1pp	-106.4%-72.9pp	-33.5%	N/A	-40.9%	N/A	-89.5%+14.1pp	-103.6%
Current Ratio	0.17-1.3x	1.44-7.1x	8.51-9.9x	18.36-5.6x	23.96+19.3x	4.66+0.3x	4.35+3.6x	0.75-18.8x	19.51+19.3x	0.21-9.6x	9.79	N/A
Debt-to-Equity	N/A	0.64+0.5x	0.11+0.1x	0.050.0x	0.04-0.1x	0.13-0.1x	0.19	N/A	0.05	N/A	0.11+0.1x	0.00

Metric	Q2'2610-Q	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q
Return on Equity	-48.6%	-44.3%+319.5pp	N/A	N/A	N/A	-363.8%-337.8pp	N/A	-17.8%-1.0pp
Return on Assets	-37.6%+36.3pp	-23.6%+43.8pp	N/A	-73.1%-57.3pp	-73.9%-44.7pp	-67.5%-43.5pp	N/A	-15.9%-0.1pp
Current Ratio	3.00+2.6x	1.79+1.3x	0.17-1.3x	0.38-6.8x	0.39-6.2x	0.49-10.9x	1.44-7.1x	7.15-7.4x
Debt-to-Equity	0.29	0.88-3.5x	N/A	N/A	N/A	4.39+4.3x	0.64+0.5x	0.12+0.1x

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

Note: Shareholder equity is negative (-$1.3M), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.

Note: The current ratio is below 1.0 (0.17), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.

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
Artelo Biosciences, Inc. ARTL	FY2025	N/A	-$12.9M	N/A	$1.7M	—
Silo Pharma, Inc. SILO	FY2025	$72K	-$4.2M	N/A	$3.0M	—
TNF Pharmaceuticals, Inc. TNFA	FY2025	N/A	-$11.6M	N/A	$9.6M	—
CERO TERAPEUTICS HLDG INC CERO	FY2025	N/A	N/A	N/A	$177K	—
Adial Pharmaceuticals, Inc ADIL	FY2025	N/A	N/A	N/A	$11.4M	—
HCW Biologics Inc. HCWB	FY2025	$54K	-$8.0M	N/A	$3.6M	—

Where Artelo Biosciences, Inc. Ranks

Frequently Asked Questions

Is Artelo Biosciences, Inc. profitable?

No, Artelo Biosciences, Inc. (ARTL) reported a net income of -$12.9M in fiscal year 2025.

What is Artelo Biosciences, Inc.'s operating cash flow?

Artelo Biosciences, Inc. (ARTL) recorded an outflow of $8.5M in operating cash flow during fiscal year 2025, representing cash used by core business activities.

What are Artelo Biosciences, Inc.'s total assets?

Artelo Biosciences, Inc. (ARTL) had $2.8M in total assets as of fiscal year 2025, including both current and long-term assets.

How much does Artelo Biosciences, Inc. spend on research and development?

Artelo Biosciences, Inc. (ARTL) invested $5.4M in research and development during fiscal year 2025.

How many shares does Artelo Biosciences, Inc. have outstanding?

Artelo Biosciences, Inc. (ARTL) had 2M shares outstanding as of fiscal year 2025.

What is Artelo Biosciences, Inc.'s current ratio?

Artelo Biosciences, Inc. (ARTL) had a current ratio of 0.17 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.

What is Artelo Biosciences, Inc.'s return on assets (ROA)?

Artelo Biosciences, Inc. (ARTL) had a return on assets of -459.8% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Artelo Biosciences, Inc.'s P/E ratio?

Artelo Biosciences, Inc. (ARTL) has no price-to-earnings ratio at the moment: net loss, so no earnings multiple (FY2025). The market capitalization is $1.7M as of Oct 12, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

What is Artelo Biosciences, Inc.'s price-to-sales ratio?

Artelo Biosciences, Inc. (ARTL) has no price-to-sales ratio at the moment: no revenue reported. The market capitalization is $1.7M as of Oct 12, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

How does Artelo Biosciences, Inc.'s liquidity compare with its operating cash outflow?

At the end of fiscal year 2025, Artelo Biosciences, Inc. (ARTL) held $600K in cash, cash equivalents and investments, and reported an operating cash outflow of $8.5M over that year. Dividing the one by the other, the reported balance equals about 1 month of the outflow reported that year. This is arithmetic over figures already filed, not a projection: it assumes nothing about future spending, financing or operations.

Why is Artelo Biosciences, Inc.'s debt-to-equity ratio negative or not reported?

Artelo Biosciences, Inc. (ARTL) has negative shareholder equity of -$1.3M as of fiscal year 2025, so no debt-to-equity ratio is reported: dividing debt by equity that is not positive produces a number that cannot be read as leverage. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.

What is Artelo Biosciences, Inc.'s Piotroski F-Score?

Artelo Biosciences, Inc. (ARTL) 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 Artelo Biosciences, Inc.'s earnings high quality?

Artelo Biosciences, Inc. (ARTL) reported a net loss of $12.9M while operations used $8.5M 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.

Can Artelo Biosciences, Inc. cover its interest payments?

Artelo Biosciences, Inc. (ARTL) reported an operating loss of $11.4M against $194K in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. 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.