What is Benitec Biopharma Inc.'s earnings per share (EPS)?

Benitec Biopharma Inc. (BNTC) reported diluted earnings per share of -$0.98 for fiscal year 2026. This represents a 6.7% 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.

Benitec Biopharma Inc. (BNTC) Financials

BNTC

FY2026 annual

Net Income -$45.5M -20.1% YoY

EPS (Diluted) -$0.98 +6.7% YoY

Free Cash Flow -$16.6M +29.6% YoY

Operating Cash Flow -$16.5M +30.0% YoY

Market Cap $316.4M as of Oct 13, 2026

Price / Sales n/m no revenue reported

Price / Earnings n/m net loss, so no earnings multiple, FY2026

Price / Book 1.8x on $177.0M equity, Q4 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 13, 2026; every other figure is from the SEC filings on this page. Not financial advice.

Source SEC Filings (10-K/10-Q) Latest period FY2026, ended Jun 30, 2026 Reported Sep 14, 2026 Currency USD FYE June

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

This page shows Benitec Biopharma Inc. (BNTC) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 8 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 BNTC FY2026 2026-10-04

Benitec remains a development-stage business: rising research spending drives losses, while financing—not operations—expands its balance sheet.

Earnings quality is diverging: from FY2025 to FY2026, accounting losses worsened while operating cash outflow narrowed. In FY2026, net loss was $45.5M against operating cash outflow of $16.5M, indicating that reported earnings contain substantially more non-cash or non-operating effects than the cash movement alone suggests.

The balance sheet is being built through financing, not through operating revenue: financing inflows accompanied the sharp expansion in assets between FY2025 and FY2026. At FY2026, assets of $182.6M stood against liabilities of only $5.6M, leaving the company lightly obligated relative to its asset base.

Current cash needs are operating rather than capital-intensive. FY2026 free cash flow was -$16.6M versus operating cash flow of -$16.5M; capital expenditures were just $105K, so the cash requirement is chiefly research, development, and corporate spending rather than heavy physical reinvestment.

Financial Health Signals

Financial health score not available

Benitec Biopharma 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

Benitec Biopharma Inc. passes 2 of 6 computable financial strength tests (3 of the nine could not be computed from available data). 2 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution).

Earnings Quality No Cash Backing

N/A

Benitec Biopharma Inc. reported a net loss of $45.5M while operations used $16.5M of cash. With neither figure positive, the ratio between the two carries no quality signal.

Key Financial Metrics

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Earnings & Revenue

EPS (Diluted)

-$0.26

YoY-23.8%

QoQ-8.3%

Benitec Biopharma Inc. earned -$0.26 per diluted share (EPS) in Q4 2026. This represents a decrease of 23.8% from the same quarter a year earlier. Against the prior quarter it is down 8.3%.

Revenue

Not reported for Q4 2026.

EBITDA

Not reported for Q4 2026.

Net Income

Not reported for Q4 2026.

Cash & Balance Sheet

Free Cash Flow

-$5.0M

YoY+38.9%

QoQ-12.3%

Benitec Biopharma Inc. recorded an outflow of $5.0M in free cash flow in Q4 2026, representing a cash shortfall after capex. This represents an increase of 38.9% from the same quarter a year earlier. Against the prior quarter it is down 12.3%.

Cash & Debt

$180.0M

YoY+84.1%

QoQ-2.6%

5Y CAGR+55.5%

Benitec Biopharma Inc. held $180.0M in cash as of Q4 2026; long-term debt is not reported for that period.

Shares Outstanding

35M

YoY+32.9%

QoQ+1.5%

5Y CAGR+33.7%

Benitec Biopharma Inc. had 35M shares outstanding in Q4 2026. This represents an increase of 32.9% from the same quarter a year earlier. Against the prior quarter it is up 1.5%.

Dividends Per Share

Not reported for Q4 2026.

Margins & Returns

None of these metrics is reported for Q4 2026.

Capital Allocation

Capital Expenditures

$79K

QoQ+426.7%

Benitec Biopharma Inc. invested $79K in capex in Q4 2026, funding long-term assets and infrastructure. Against the prior quarter it is up 426.7%.

R&D Spending

Not reported for Q4 2026.

Share Buybacks

Not reported for Q4 2026.

BNTC 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.

BNTC quarterly income statement

Metric	FY2610-K	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K
Revenue	N/A	N/A	$0-100.0%	$75K+2.7%	$73K+23.7%	$59K-42.2%	$102K-99.2%	$12.2M
R&D Expenses	$23.4M+27.6%	$18.3M+17.4%	$15.6M+22.2%	$12.8M+13.3%	$11.3M+60.6%	$7.0M+133.9%	$3.0M-34.3%	$4.6M
SG&A Expenses	$27.8M+18.7%	$23.4M+235.3%	$7.0M+9.5%	$6.4M-4.0%	$6.6M+2.1%	$6.5M+17.0%	$5.6M+20.7%	$4.6M
Operating Income	-$51.2M-22.6%	-$41.8M-85.7%	-$22.5M-17.9%	-$19.1M-6.9%	-$17.9M-31.3%	-$13.6M-64.2%	-$8.3M-420.6%	$2.6M
EBITDA	-$51.1M-22.6%	-$41.7M-86.1%	-$22.4M-18.3%	-$18.9M-7.1%	-$17.7M-32.3%	-$13.4M-65.2%	-$8.1M-395.2%	$2.7M
Interest Expense	N/A	N/A	N/A	$33K+3.1%	$32K+433.3%	$6K	N/A	N/A
Income Tax	$0	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Income	-$45.5M-20.1%	-$37.9M-74.3%	-$21.8M-11.2%	-$19.6M-7.4%	-$18.2M-31.2%	-$13.9M-67.8%	-$8.3M-417.1%	$2.6M
EPS (Basic)	-$0.98+6.7%	-$1.05+13.9%	-$1.22+91.4%	-$14.12+62.7%	-$37.88-1072.8%	-$3.23	N/A	N/A
EPS (Diluted)	-$0.98+6.7%	-$1.05	-$1.22	-$14.12	-$37.88	-$3.23	N/A	N/A
Diluted Shares (Avg)	47M+28.6%	36M	18M	1M	480,688	4M	N/A	N/A

Metric	Q4'2610-K	Q3'2610-Q	Q2'2610-Q	Q1'2610-Q	Q4'2510-K/A	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q
Revenue	N/A	$0	$0	$0	N/A	$0	$0	$0
R&D Expenses	N/A	$6.3M-3.0%	$5.8M+8.3%	$3.4M-6.0%	$2.9M	$6.5M+153.1%	$5.4M+5.5%	$3.6M-19.1%
SG&A Expenses	N/A	$7.3M-17.6%	$7.5M+39.2%	$6.4M+191.6%	$7.0M	$8.8M+460.2%	$5.4M+197.1%	$2.2M+42.2%
Operating Income	N/A	-$13.6M+11.4%	-$13.4M-23.8%	-$9.8M-69.3%	-$9.8M	-$15.3M-270.3%	-$10.8M-56.0%	-$5.8M+1.4%
EBITDA	N/A	-$13.6M+11.4%	-$13.4M-23.8%	-$9.8M-69.8%	-$9.8M	-$15.3M-272.3%	-$10.8M-56.2%	-$5.8M+1.5%
Net Income	N/A	-$11.9M+17.7%	-$11.8M-23.9%	-$9.0M-77.2%	-$8.8M	-$14.5M-238.9%	-$9.6M-40.5%	-$5.1M+15.0%
EPS (Basic)	-$0.26-23.8%	-$0.24+36.8%	-$0.260.0%	-$0.22-22.2%	-$0.21-112.4%	-$0.38-65.2%	-$0.26+90.2%	-$0.18+94.1%
EPS (Diluted)	-$0.26-23.8%	-$0.24+36.8%	-$0.260.0%	-$0.22-22.2%	-$0.21	-$0.38	-$0.26	-$0.18
Diluted Shares (Avg)	N/A	49M+27.9%	46M+23.4%	42M+48.9%	41M	39M	37M	28M

Not reported in any period shown, so not listed: Cost of Revenue, Gross Profit, Interest Expense, Income Tax.

BNTC Balance Sheet

BNTC quarterly balance sheet

Metric	FY2610-K	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K
Total Assets	$182.6M+83.4%	$99.6M+90.8%	$52.2M+1069.6%	$4.5M-25.3%	$6.0M-72.1%	$21.4M+84.5%	$11.6M-39.8%	$19.2M
Current Assets	$181.7M+84.4%	$98.5M+90.7%	$51.7M+1285.7%	$3.7M-22.6%	$4.8M-76.6%	$20.6M+90.7%	$10.8M-42.4%	$18.8M
Cash & Equivalents	$180.0M+84.1%	$97.7M+92.2%	$50.9M+1953.5%	$2.5M-39.0%	$4.1M-79.5%	$19.8M+101.7%	$9.8M-37.6%	$15.7M
Short-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Long-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Total Liabilities	$5.6M+144.2%	$2.3M-53.7%	$5.0M+16.4%	$4.3M+37.9%	$3.1M+125.8%	$1.4M+1.5%	$1.3M-48.9%	$2.6M
Current Liabilities	$5.3M+196.6%	$1.8M-63.4%	$4.9M+23.8%	$4.0M+57.1%	$2.5M+85.0%	$1.4M+20.5%	$1.1M-57.0%	$2.6M
Non-Current Liabilities	$266K-46.3%	$495K+1202.6%	$38K-86.6%	$284K-49.2%	$559K	$0-100.0%	$213K	$0
Total Equity	$177.0M+81.9%	$97.3M+105.9%	$47.2M+23290.1%	$202K-93.0%	$2.9M-85.6%	$20.0M+95.4%	$10.2M-38.3%	$16.6M
Retained Earnings	-$273.7M-20.0%	-$228.2M-19.9%	-$190.3M-13.3%	-$167.9M-13.2%	-$148.3M-14.0%	-$130.1M-11.6%	-$116.6M-7.1%	-$108.9M

Metric	Q4'2610-K	Q3'2610-Q	Q2'2610-Q	Q1'2610-Q	Q4'2510-K/A	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q
Total Assets	$182.6M+83.4%	$187.0M+77.7%	$190.7M+141.2%	$96.0M+39.6%	$99.6M+90.8%	$105.2M+601.4%	$79.1M+270.3%	$68.8M+154.2%
Current Assets	$181.7M+84.4%	$186.0M+78.8%	$189.6M+140.9%	$95.1M+39.1%	$98.5M+90.7%	$104.0M+624.0%	$78.7M+278.5%	$68.3M+158.7%
Cash & Equivalents	$180.0M+84.1%	$184.8M+78.4%	$188.8M+141.2%	$94.5M+39.3%	$97.7M+92.2%	$103.6M+634.6%	$78.3M+284.2%	$67.8M+162.3%
Short-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Long-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Total Liabilities	$5.6M+144.2%	$3.7M-52.0%	$3.3M+6.2%	$2.4M-47.1%	$2.3M-53.7%	$7.6M+118.3%	$3.1M-46.8%	$4.6M-3.2%
Current Liabilities	$5.3M+196.6%	$3.3M-53.4%	$2.8M-9.3%	$2.0M-55.5%	$1.8M-63.4%	$7.0M+104.4%	$3.1M-46.2%	$4.6M+0.4%
Non-Current Liabilities	$266K-46.3%	$394K-35.7%	$519K+1265.8%	$403K+882.9%	$495K+1202.6%	$613K+888.7%	$38K-72.3%	$41K-80.6%
Total Equity	$177.0M+81.9%	$183.3M+87.9%	$187.4M+146.7%	$93.6M+45.8%	$97.3M+105.9%	$97.6M+748.4%	$75.9M+390.9%	$64.2M+187.7%
Retained Earnings	-$273.7M-20.0%	-$260.9M-23.1%	-$249.0M-22.8%	-$237.1M-21.4%	-$228.2M-19.9%	-$212.0M-14.3%	-$202.7M-11.8%	-$195.3M-12.0%

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

BNTC Cash Flow Statement

BNTC quarterly cash flow statement

Metric	FY2610-K	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K
Operating Cash Flow	-$16.5M+30.0%	-$23.6M-21.6%	-$19.4M-7.7%	-$18.0M-13.3%	-$15.9M-23.9%	-$12.8M-70.3%	-$7.5M-257.3%	$4.8M
Depreciation & Amortization	$58K-12.1%	$66K-24.1%	$87K-36.0%	$136K-18.6%	$167K-27.7%	$231K+21.6%	$190K+20.3%	$158K
Stock-Based Compensation	$26.4M+51.6%	$17.4M+1999.5%	$830K+83.6%	$452K-48.0%	$870K+37.2%	$634K+167.5%	$237K-64.7%	$672K
Capital Expenditures	$105K+483.3%	$18K-89.9%	$179K+17800.0%	$1K-92.3%	$13K-94.1%	$221K+132.6%	$95K-76.5%	$404K
Free Cash Flow	-$16.6M+29.6%	-$23.6M-20.5%	-$19.6M-8.7%	-$18.0M-13.2%	-$15.9M-21.9%	-$13.1M-71.1%	-$7.6M-274.0%	$4.4M
Investing Cash Flow	-$105K-483.3%	-$18K+89.9%	-$179K-17800.0%	-$1K+92.3%	-$13K+94.1%	-$221K-135.1%	-$94K+76.5%	-$400K
Financing Cash Flow	$99.0M+40.4%	$70.5M+3.6%	$68.0M+324.8%	$16.0M	N/A	$22.5M+1172.4%	$1.8M	N/A

Metric	Q4'2610-K	Q3'2610-Q	Q2'2610-Q	Q1'2610-Q	Q4'2510-K/A	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q
Operating Cash Flow	-$4.9M+39.9%	-$4.5M-44.3%	-$3.8M+51.0%	-$3.4M+26.9%	-$8.2M-149.4%	-$3.1M+50.0%	-$7.7M-43.6%	-$4.6M-0.2%
Depreciation & Amortization	$17K+21.4%	$14K+7.7%	$14K0.0%	$13K-48.0%	$14K-46.2%	$13K-48.0%	$14K-17.6%	$25K+31.6%
Stock-Based Compensation	N/A	$7.6M-2.0%	$7.4M+135.1%	$5.2M+1090.8%	N/A	$7.7M+3933.3%	$3.1M+3274.2%	$435K+378.0%
Capital Expenditures	$79K	$15K+150.0%	N/A	N/A	$0	$6K	N/A	N/A
Free Cash Flow	-$5.0M+38.9%	-$4.5M-44.5%	N/A	N/A	-$8.2M-149.4%	-$3.1M	N/A	N/A
Investing Cash Flow	-$79K	-$15K-150.0%	-$11K+8.3%	$0	$0	-$6K+96.6%	-$12K	$0
Financing Cash Flow	$241K-91.2%	$506K-98.2%	$98.2M+449.7%	$0-100.0%	$2.7M-93.2%	$28.2M	$17.9M+45720.5%	$21.7M-22.4%

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

BNTC 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.

BNTC quarterly financial ratios

Metric	FY2610-K	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K
Operating Margin	N/A	N/A	N/A	-25441.3%	-24457.5%	-23044.1%	-8118.6%	21.2%
Net Margin	N/A	N/A	N/A	-26082.7%	-24942.5%	-23528.8%	-8111.8%	21.4%
Return on Equity	-25.7%+13.2pp	-39.0%+7.1pp	-46.0%+9638.1pp	-9684.2%-9052.4pp	-631.8%-562.4pp	-69.4%+11.4pp	-80.8%-96.5pp	15.7%
Return on Assets	-24.9%+13.1pp	-38.1%+3.6pp	-41.7%+396.6pp	-438.2%-133.4pp	-304.8%-239.9pp	-64.9%+6.5pp	-71.4%-85.0pp	13.6%
Current Ratio	34.00-20.7x	54.67+44.2x	10.49+9.6x	0.94-1.0x	1.90-13.1x	15.05+5.5x	9.52+2.4x	7.10
Debt-to-Equity	0.030.0x	0.02-0.1x	0.10-21.0x	21.10+20.0x	1.07+1.0x	0.07-0.1x	0.130.0x	0.16
Asset Turnover	N/A	N/A	0.000.0x	0.020.0x	0.010.0x	0.000.0x	0.01-0.6x	0.63
FCF Margin	N/A	N/A	N/A	-24017.3%	-21797.3%	-22123.7%	-7480.4%	35.9%

Metric	Q4'2610-K	Q3'2610-Q	Q2'2610-Q	Q1'2610-Q	Q4'2510-K/A	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q
Return on Equity	N/A	-6.5%+8.3pp	-6.3%+6.3pp	-9.6%-1.7pp	-9.0%	-14.9%+22.3pp	-12.6%+31.4pp	-7.9%+18.8pp
Return on Assets	N/A	-6.4%+7.4pp	-6.2%+5.9pp	-9.3%-2.0pp	-8.8%	-13.8%+14.8pp	-12.1%+19.8pp	-7.4%+14.6pp
Current Ratio	34.00-20.7x	56.82+42.0x	67.69+42.2x	46.95+31.9x	54.67+44.2x	14.80+10.6x	25.48+21.9x	15.01+9.2x
Debt-to-Equity	0.030.0x	0.02-0.1x	0.020.0x	0.030.0x	0.02-0.1x	0.08-0.2x	0.04-0.3x	0.07-0.1x
Asset Turnover	N/A	0.000.0x	0.000.0x	0.000.0x	N/A	0.000.0x	0.000.0x	0.000.0x

Not reported in any period shown, so not listed: Gross Margin, Operating Margin, Net Margin, FCF 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
Benitec Biopharma Inc. BNTC	FY2026	N/A	-$45.5M	N/A	$316.4M	—
Autolus Therapeutics plc AUTL	FY2025	$75.4M	-$287.5M	N/A	$481.8M	57/100
Larimar Therapeutics, Inc. LRMR	FY2025	N/A	-$165.7M	N/A	$277.4M	—
Galectin Therapeutics Inc. GALT	FY2025	N/A	-$30.8M	N/A	$397.3M	—
DiaMedica Therapeutics Inc. DMAC	FY2025	N/A	-$32.8M	N/A	$449.2M	—
ADC Therapeutics SA ADCT	FY2025	$81.4M	-$142.6M	N/A	$220.9M	49/100

Where Benitec Biopharma Inc. Ranks

Frequently Asked Questions

Is Benitec Biopharma Inc. profitable?

No, Benitec Biopharma Inc. (BNTC) reported a net income of -$45.5M in fiscal year 2026.

What is Benitec Biopharma Inc.'s EBITDA?

Benitec Biopharma Inc. (BNTC) had EBITDA of -$51.1M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.

What is Benitec Biopharma Inc.'s return on equity (ROE)?

Benitec Biopharma Inc. (BNTC) has a return on equity of -25.7% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.

What is Benitec Biopharma Inc.'s free cash flow?

Benitec Biopharma Inc. (BNTC) recorded an outflow of $16.6M in free cash flow during fiscal year 2026. This represents a 29.6% 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 Benitec Biopharma Inc.'s operating cash flow?

Benitec Biopharma Inc. (BNTC) recorded an outflow of $16.5M in operating cash flow during fiscal year 2026, representing cash used by core business activities.

What are Benitec Biopharma Inc.'s total assets?

Benitec Biopharma Inc. (BNTC) had $182.6M in total assets as of fiscal year 2026, including both current and long-term assets.

What are Benitec Biopharma Inc.'s capital expenditures?

Benitec Biopharma Inc. (BNTC) invested $105K in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.

How much does Benitec Biopharma Inc. spend on research and development?

Benitec Biopharma Inc. (BNTC) invested $23.4M in research and development during fiscal year 2026.

How many shares does Benitec Biopharma Inc. have outstanding?

Benitec Biopharma Inc. (BNTC) had 35M shares outstanding as of fiscal year 2026.

What is Benitec Biopharma Inc.'s current ratio?

Benitec Biopharma Inc. (BNTC) had a current ratio of 34.00 as of fiscal year 2026, which is generally considered healthy.

What is Benitec Biopharma Inc.'s debt-to-equity ratio?

Benitec Biopharma Inc. (BNTC) had a debt-to-equity ratio of 0.03 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Benitec Biopharma Inc.'s return on assets (ROA)?

Benitec Biopharma Inc. (BNTC) had a return on assets of -24.9% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.

What is Benitec Biopharma Inc.'s P/E ratio?

Benitec Biopharma Inc. (BNTC) has no price-to-earnings ratio at the moment: net loss, so no earnings multiple (FY2026). The market capitalization is $316.4M as of Oct 13, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

What is Benitec Biopharma Inc.'s price-to-sales ratio?

Benitec Biopharma Inc. (BNTC) has no price-to-sales ratio at the moment: no revenue reported. The market capitalization is $316.4M as of Oct 13, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

What is Benitec Biopharma Inc.'s Piotroski F-Score?

Benitec Biopharma Inc. (BNTC) 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 Benitec Biopharma Inc.'s earnings high quality?

Benitec Biopharma Inc. (BNTC) reported a net loss of $45.5M while operations used $16.5M 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.