Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes (BEPI) Financials

BEPI

FY2025 annual

Revenue $6.4B +9.0% YoY

Net Income $712.0M +8011.1% YoY

Free Cash Flow -$5.4B -121.2% YoY

Operating Cash Flow $1.1B -10.0% YoY

Source SEC Filings (10-K/10-Q) Latest period FY2025, ended Dec 31, 2025 Reported Feb 27, 2026 Currency USD FYE December

Newest figures come from the 10-K for FY2025, filed Feb 27, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the BEPI SEC filings page.

Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes (BEPI) reported $6.4B in revenue for fiscal year 2025, up 9.0% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 11 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 BEPI FY2025 2026-10-04

The asset-heavy business is expanding, but reported earnings are not translating into internally funded investment.

FY2025 net income was $712M, while operating cash flow was $1.1B, so accounting profit did convert to cash at the operating level. Capital spending reached $6.6B and free cash flow was -$5.4B, revealing that investment needs overwhelmed internally generated cash despite the profit recovery.

The balance sheet carries elevated leverage: liabilities reached $63.7B against $35.0B of equity. Debt-to-equity was 1.8x and current ratio was 0.6x, indicating substantial claims on the asset base and current assets below current obligations.

Total assets expanded from $76.1B in FY2023 to $98.7B in FY2025. Return on assets slipped from 0.8% to 0.7%, showing that the larger asset base has not produced proportionally better earnings efficiency.

Financial Health Signals

Financial health score not available

Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes 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

5/6

Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes passes 5 of 6 computable financial strength tests (3 of the nine could not be computed from available data). All 4 profitability signals pass (positive income, cash flow, and earnings quality), no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), both operating efficiency signals pass.

Earnings Quality Cash-Backed

1.61x

For every $1 of reported earnings, Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes generates $1.61 in operating cash flow ($1.1B OCF vs $712.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Key Financial Metrics

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Earnings & Revenue

None of these metrics is reported for Q4 2025.

Cash & Balance Sheet

Cash & Debt

$2.1B

YoY-33.2%

QoQ+9.8%

Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes held $2.1B in cash as of Q4 2025; long-term debt is not reported for that period.

Free Cash Flow

Not reported for Q4 2025.

Dividends Per Share

Not reported for Q4 2025.

Shares Outstanding

Not reported for Q4 2025.

Margins & Returns

None of these metrics is reported for Q4 2025.

Capital Allocation

None of these metrics is reported for Q4 2025.

BEPI 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.

BEPI quarterly income statement

Metric	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K
Revenue	$6.4B+9.0%	$5.9B+16.6%	$5.0B+6.9%	$4.7B+15.0%	$4.1B+7.5%	$3.8B-4.1%	$4.0B+4.6%	$3.8B+37.0%	$2.8B+13.1%	$2.5B+50.6%	$1.6B
Interest Expense	$189.0M+200.0%	$63.0M+80.0%	$35.0M	$0-100.0%	$2.0M0.0%	$2.0M-71.4%	$7.0M-46.2%	$13.0M-98.1%	$685.0M+13.0%	$606.0M+241.3%	-$429.0M
Income Tax	-$614.0M-221.5%	-$191.0M-297.9%	-$48.0M-2300.0%	-$2.0M-114.3%	$14.0M+109.5%	-$147.0M-441.9%	$43.0M+112.5%	-$343.0M-597.1%	$69.0M+30.2%	$53.0M-11.7%	$60.0M
Net Income	$712.0M+8011.1%	-$9.0M-101.5%	$616.0M+346.4%	$138.0M+309.1%	-$66.0M-46.7%	-$45.0M-156.3%	$80.0M-86.3%	$583.0M+14475.0%	$4.0M-90.0%	$40.0M-61.2%	$103.0M

Metric	Q4'2510-K	Q2'2510-Q	Q4'2410-K	Q2'2410-Q	Q4'2310-K	Q2'2310-Q	Q4'2210-K	Q2'2210-Q
Revenue	N/A	$1.7B+14.2%	N/A	$1.5B+23.0%	N/A	$1.2B-5.4%	N/A	$1.3B+25.0%
Interest Expense	N/A	$32.0M+146.2%	N/A	$13.0M+85.7%	N/A	$7.0M	N/A	$0
Income Tax	N/A	-$197.0M-1136.8%	N/A	$19.0M0.0%	N/A	$19.0M-69.4%	N/A	$62.0M+3000.0%
Net Income	N/A	$100.0M+213.6%	N/A	-$88.0M-158.3%	N/A	$151.0M+23.8%	N/A	$122.0M+10.9%

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

BEPI Balance Sheet

BEPI 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
Total Assets	$98.7B+4.1%	$94.8B+24.5%	$76.1B+18.7%	$64.1B+14.8%	$55.9B+12.4%	$49.7B+7.6%	$46.2B+6.2%	$43.5B+40.8%	$30.9B+11.4%	$27.7B	N/A
Current Assets	$12.3B+39.2%	$8.8B+91.6%	$4.6B+10.2%	$4.2B+44.8%	$2.9B+65.8%	$1.7B-13.8%	$2.0B-17.8%	$2.5B+47.5%	$1.7B+83.7%	$907.0M	N/A
Cash & Equivalents	$2.1B-33.2%	$3.1B+174.8%	$1.1B+14.3%	$998.0M+10.9%	$900.0M+48.3%	$607.0M+25.7%	$483.0M+14.5%	$422.0M-54.5%	$927.0M+315.7%	$223.0M+254.0%	$63.0M
Inventory	$177.0M+14.9%	$154.0M+38.7%	$111.0M+164.3%	$42.0M+35.5%	$31.0M+19.2%	$26.0M-39.5%	$43.0M	N/A	N/A	N/A	N/A
Accounts Receivable	$2.5B+19.7%	$2.1B+40.0%	$1.5B-18.4%	$1.9B+10.5%	$1.7B+81.4%	$928.0M-5.2%	$979.0M+20.3%	$814.0M+46.9%	$554.0M+22.0%	$454.0M	N/A
Goodwill	$6.0B+10.8%	$5.4B+179.5%	$1.9B+27.4%	$1.5B+58.0%	$966.0M-0.4%	$970.0M+2.2%	$949.0M+0.1%	$948.0M+5.2%	$901.0M+0.6%	$896.0M	N/A
Total Liabilities	$63.7B+9.2%	$58.4B+26.4%	$46.1B+22.0%	$37.8B+18.7%	$31.9B+14.0%	$28.0B+8.7%	$25.7B+52.2%	$16.9B+1.7%	$16.6B+10.3%	$15.1B	N/A
Current Liabilities	$21.7B+49.0%	$14.6B+81.2%	$8.0B+62.6%	$4.9B+53.4%	$3.2B+16.7%	$2.8B+13.9%	$2.4B-9.7%	$2.7B+6.7%	$2.5B+45.1%	$1.7B	N/A
Non-Current Liabilities	$42.0B-4.0%	$43.8B+14.9%	$38.1B+15.9%	$32.9B+14.8%	$28.6B+13.7%	$25.2B+8.2%	$23.3B	N/A	$14.1B+5.8%	$13.3B	N/A
Long-Term Debt	N/A	N/A	N/A	$24.9B+15.4%	$21.5B+19.1%	$18.1B+4.5%	$17.3B+61.4%	$10.7B-8.9%	$11.8B0.0%	$11.8B+15.6%	$10.2B
Total Equity	$35.0B-4.1%	$36.5B+21.6%	$30.0B+14.0%	$26.3B+9.5%	$24.0B+10.2%	$21.8B+6.3%	$20.5B+5.6%	$19.4B+24.7%	$15.6B+22.8%	$12.7B+44.6%	$8.8B

Metric	Q4'2510-K	Q2'2510-Q	Q4'2410-K	Q2'2410-Q	Q4'2310-K	Q2'2310-Q	Q4'2210-K	Q2'2210-Q
Total Assets	$98.7B+4.1%	$98.6B+33.6%	$94.8B+24.5%	$73.8B+12.0%	$76.1B+18.7%	$65.9B+15.6%	$64.1B+14.8%	$57.0B+11.6%
Current Assets	$12.3B+39.2%	$7.8B+85.8%	$8.8B+91.6%	$4.2B+16.1%	$4.6B+10.2%	$3.6B+14.6%	$4.2B+44.8%	$3.2B+5.6%
Cash & Equivalents	$2.1B-33.2%	$1.9B+54.3%	$3.1B+174.8%	$1.2B+2.8%	$1.1B+14.3%	$1.2B+13.5%	$998.0M+10.9%	$1.1B+99.8%
Inventory	$177.0M+14.9%	$163.0M+30.4%	$154.0M+38.7%	$125.0M+212.5%	$111.0M+164.3%	$40.0M-47.4%	$42.0M+35.5%	$76.0M+68.9%
Accounts Receivable	$2.5B+19.7%	$2.5B+51.2%	$2.1B+40.0%	$1.6B-0.2%	$1.5B-18.4%	$1.6B-12.3%	$1.9B+10.5%	$1.9B+58.7%
Goodwill	$6.0B+10.8%	$6.1B+224.8%	$5.4B+179.5%	$1.9B+17.8%	$1.9B+27.4%	$1.6B+35.3%	$1.5B+58.0%	$1.2B+18.7%
Total Liabilities	$63.7B+9.2%	$65.3B+42.5%	$58.4B+26.4%	$45.8B+22.5%	$46.1B+22.0%	$37.4B+9.9%	$37.8B+18.7%	$34.0B+15.8%
Current Liabilities	$21.7B+49.0%	$17.7B+119.7%	$14.6B+81.2%	$8.1B+103.6%	$8.0B+62.6%	$4.0B-8.6%	$4.9B+53.4%	$4.3B+24.2%
Non-Current Liabilities	$42.0B-4.0%	$47.6B+26.0%	$43.8B+14.9%	$37.8B+12.9%	$38.1B+15.9%	$33.4B+12.6%	$32.9B+14.8%	$29.7B+14.7%
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	$24.4B+4.3%	$24.9B+15.4%	$23.4B+20.8%
Total Equity	$35.0B-4.1%	$33.3B+19.1%	$36.5B+21.6%	$28.0B-1.9%	$30.0B+14.0%	$28.5B+24.0%	$26.3B+9.5%	$23.0B+5.8%

Not reported in any period shown, so not listed: Short-Term Investments, Long-Term Investments, Retained Earnings.

BEPI Cash Flow Statement

BEPI quarterly cash flow statement

Metric	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K
Operating Cash Flow	$1.1B-10.0%	$1.3B-31.7%	$1.9B+9.0%	$1.7B+133.1%	$734.0M-43.4%	$1.3B-16.6%	$1.6B+20.8%	$1.3B+108.8%	$616.0M-2.5%	$632.0M+7.5%	$588.0M
Capital Expenditures	$6.6B+76.5%	$3.7B+32.9%	$2.8B+28.3%	$2.2B+11.3%	$2.0B+340.0%	$447.0M-2.8%	$460.0M+69.7%	$271.0M-24.1%	$357.0M-3.3%	$369.0M	N/A
Free Cash Flow	-$5.4B-121.2%	-$2.5B-160.5%	-$944.0M-97.1%	-$479.0M+61.2%	-$1.2B-245.2%	$849.0M-22.4%	$1.1B+7.8%	$1.0B+291.9%	$259.0M-1.5%	$263.0M	N/A
Investing Cash Flow	-$8.6B-27.2%	-$6.8B-56.1%	-$4.4B+14.0%	-$5.1B-99.1%	-$2.5B-566.0%	-$382.0M+68.5%	-$1.2B-12.4%	-$1.1B-25.2%	-$860.0M+73.0%	-$3.2B-412.2%	-$623.0M
Financing Cash Flow	$6.4B-16.1%	$7.6B+194.6%	$2.6B-25.6%	$3.5B+62.8%	$2.1B+370.6%	-$792.0M-97.0%	-$402.0M+41.2%	-$684.0M-172.5%	$944.0M-65.2%	$2.7B+8309.1%	-$33.0M
Dividends Paid	$1.1B+7.4%	$1.1B+7.2%	$990.0M+8.2%	$915.0M+7.1%	$854.0M+11.1%	$769.0M+12.4%	$684.0M+6.4%	$643.0M+8.8%	$591.0M+13.2%	$522.0M+13.2%	$461.0M

Metric	Q4'2510-K	Q2'2510-Q	Q4'2410-K	Q2'2410-Q	Q4'2310-K	Q2'2310-Q	Q4'2210-K	Q2'2210-Q
Operating Cash Flow	N/A	$379.0M+64.1%	N/A	$231.0M-39.5%	N/A	$382.0M-12.8%	N/A	$438.0M
Capital Expenditures	N/A	$1.5B+80.2%	N/A	$820.0M+69.4%	N/A	$484.0M+7.8%	N/A	$449.0M+84.0%
Free Cash Flow	N/A	-$1.1B-86.6%	N/A	-$589.0M-477.5%	N/A	-$102.0M-827.3%	N/A	-$11.0M+95.5%
Investing Cash Flow	N/A	-$3.1B-243.0%	N/A	-$894.0M-347.0%	N/A	-$200.0M+62.7%	N/A	-$536.0M-525.4%
Financing Cash Flow	N/A	$2.6B+403.5%	N/A	$508.0M+490.8%	N/A	-$130.0M-148.7%	N/A	$267.0M+641.7%
Dividends Paid	N/A	$281.0M+3.7%	N/A	$271.0M+10.2%	N/A	$246.0M+7.9%	N/A	$228.0M+7.0%

Not reported in any period shown, so not listed: Depreciation & Amortization, Stock-Based Compensation, Share Buybacks.

BEPI 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.

BEPI 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
Net Margin	11.1%+11.3pp	-0.1%-12.4pp	12.2%+9.3pp	2.9%+4.5pp	-1.6%-0.4pp	-1.2%-3.2pp	2.0%-13.3pp	15.3%+15.2pp	0.1%-1.5pp	1.6%-4.7pp	6.3%
Return on Equity	2.0%+2.1pp	0.0%-2.1pp	2.1%+1.5pp	0.5%+0.8pp	-0.3%-0.1pp	-0.2%-0.6pp	0.4%-2.6pp	3.0%+3.0pp	0.0%-0.3pp	0.3%-0.9pp	1.2%
Return on Assets	0.7%+0.7pp	0.0%-0.8pp	0.8%+0.6pp	0.2%+0.3pp	-0.1%0.0pp	-0.1%-0.3pp	0.2%-1.2pp	1.3%+1.3pp	0.0%-0.1pp	0.1%	N/A
Current Ratio	0.570.0x	0.610.0x	0.57-0.3x	0.85-0.1x	0.90+0.3x	0.63-0.2x	0.83-0.1x	0.92+0.3x	0.66+0.1x	0.52	N/A
Debt-to-Equity	1.82+0.2x	1.60+0.1x	1.54+0.6x	0.950.0x	0.90+0.1x	0.830.0x	0.84+0.3x	0.55-0.2x	0.76-0.2x	0.93-0.2x	1.16
Asset Turnover	0.060.0x	0.060.0x	0.070.0x	0.070.0x	0.070.0x	0.080.0x	0.090.0x	0.090.0x	0.090.0x	0.09	N/A
FCF Margin	-84.9%-43.1pp	-41.9%-23.1pp	-18.7%-8.6pp	-10.2%+19.9pp	-30.1%-52.4pp	22.3%-5.3pp	27.6%+0.8pp	26.7%+17.4pp	9.3%-1.4pp	10.7%	N/A

Metric	Q4'2510-K	Q2'2510-Q	Q4'2410-K	Q2'2410-Q	Q4'2310-K	Q2'2310-Q	Q4'2210-K	Q2'2210-Q
Net Margin	N/A	5.9%+11.8pp	N/A	-5.9%-18.5pp	N/A	12.5%+2.9pp	N/A	9.6%-1.2pp
Return on Equity	N/A	0.3%+0.6pp	N/A	-0.3%-0.8pp	N/A	0.5%0.0pp	N/A	0.5%0.0pp
Return on Assets	N/A	0.1%+0.2pp	N/A	-0.1%-0.3pp	N/A	0.2%0.0pp	N/A	0.2%0.0pp
Current Ratio	0.570.0x	0.44-0.1x	0.610.0x	0.52-0.4x	0.57-0.3x	0.91+0.2x	0.85-0.1x	0.73-0.1x
Debt-to-Equity	1.82+0.2x	1.96+0.3x	1.60+0.1x	1.64+0.8x	1.54+0.6x	0.86-0.2x	0.950.0x	1.02+0.1x
Asset Turnover	N/A	0.020.0x	N/A	0.020.0x	N/A	0.020.0x	N/A	0.020.0x
FCF Margin	N/A	-65.0%-25.2pp	N/A	-39.7%-31.3pp	N/A	-8.5%-7.6pp	N/A	-0.9%+23.1pp

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

Note: The current ratio is below 1.0 (0.57), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.

Where Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes Ranks

Frequently Asked Questions

What is Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes's annual revenue?

Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes (BEPI) reported $6.4B in total revenue for fiscal year 2025. This represents a 9.0% 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 Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes's revenue growing?

Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes (BEPI) revenue grew by 9.0% year-over-year, from $5.9B to $6.4B in fiscal year 2025.

Is Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes profitable?

Yes, Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes (BEPI) reported a net income of $712.0M in fiscal year 2025, with a net profit margin of 11.1%.

What is Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes's net profit margin?

Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes (BEPI) had a net profit margin of 11.1% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

What is Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes's return on equity (ROE)?

Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes (BEPI) has a return on equity of 2.0% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes's free cash flow?

Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes (BEPI) recorded an outflow of $5.4B in free cash flow during fiscal year 2025. This represents a -121.2% 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.

What is Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes's operating cash flow?

Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes (BEPI) generated $1.1B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes's total assets?

Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes (BEPI) had $98.7B in total assets as of fiscal year 2025, including both current and long-term assets.

What are Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes's capital expenditures?

Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes (BEPI) invested $6.6B in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

What is Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes's current ratio?

Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes (BEPI) had a current ratio of 0.57 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.

What is Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes's debt-to-equity ratio?

Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes (BEPI) had a debt-to-equity ratio of 1.82 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes's return on assets (ROA)?

Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes (BEPI) had a return on assets of 0.7% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes's Piotroski F-Score?

Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes (BEPI) has a Piotroski F-Score of 5 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 Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes's earnings high quality?

Brookfield BRP Holdings (Canada) Inc. 4.875% Perpetual Subordinated Notes (BEPI) has an earnings quality ratio of 1.61x, 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.