CDW Corporation (CDW) Financials
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.
Newest figures come from the 10-Q for Q2 FY2026, filed Aug 5, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the CDW SEC filings page.
CDW Corporation (CDW) reported $23.5B in revenue over the twelve months to Jun 30, 2026, up 7.4% from the prior twelve months. 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).
Revenue recovery is not fully reaching cash or operating profit: overhead and receivables are absorbing much of the improvement.
Operating cash flow remained above net income in FY2025, so reported earnings still translated into cash; however, free cash flow fell to$1.1B from$1.2B in FY2024. That divergence alongside sharply higher accounts receivable points to more cash tied up in customer balances, rather than a collapse in underlying profitability.
Gross margin held near
Debt-to-equity fell to 1.8x from 2.4x in FY2024, indicating reduced reliance on borrowing. Long-term debt declined to
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of CDW Corporation's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
CDW Corporation has an operating margin of 7.4%, meaning the company retains $7 of operating profit per $100 of revenue. This strong profitability earns a score of 72/100, reflecting efficient cost management and pricing power. This is down from 7.9% the prior year.
CDW Corporation's revenue grew 6.8% year-over-year to $22.4B, a solid pace of expansion. This earns a growth score of 39/100.
CDW Corporation has a moderate D/E ratio of 1.77. This balance of debt and equity financing earns a leverage score of 31/100.
CDW Corporation's current ratio of 1.18 is below the typical benchmark, resulting in a score of 27/100. This tight liquidity could limit financial flexibility if cash inflows slow.
CDW Corporation has a free cash flow margin of 4.9%, earning a moderate score of 47/100. The company generates positive cash flow after capital investments, but with room for improvement.
CDW Corporation earns a strong 40.9% return on equity (ROE), meaning it generates $41 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 90/100. This is down from 45.8% the prior year.
CDW Corporation scores 2.57, placing it in the grey zone between 1.81 and 2.99. This signals moderate financial risk that warrants monitoring.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
CDW Corporation passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, CDW Corporation generates $1.13 in operating cash flow ($1.2B OCF vs $1.1B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
CDW Corporation earns $7.28 in operating income for every $1 of interest expense ($1.7B vs $227.4M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
CDW Corporation generated $6.6B in revenue in Q2 2026. This represents an increase of 10.0% from the same quarter a year earlier. Against the prior quarter it is up 15.7%.
CDW Corporation's EBITDA was $503.9M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 2.1% from the same quarter a year earlier. Against the prior quarter it is up 11.8%.
CDW Corporation reported $274.4M in net income in Q2 2026. This represents an increase of 1.2% from the same quarter a year earlier. Against the prior quarter it is up 16.6%.
CDW Corporation earned $2.15 per diluted share (EPS) in Q2 2026. This represents an increase of 4.9% from the same quarter a year earlier. Against the prior quarter it is up 18.1%.
Cash & Balance Sheet
CDW Corporation recorded an outflow of $82.6M in free cash flow in Q2 2026, representing a cash shortfall after capex. This represents a decrease of 161.9% from the same quarter a year earlier. Against the prior quarter it is down 133.3%.
CDW Corporation held $361.8M in cash against $4.8B in long-term debt as of Q2 2026.
CDW Corporation paid $0.63 per share in dividends in Q2 2026. This represents an increase of 0.8% from the same quarter a year earlier. It is unchanged from the prior quarter.
Margins & Returns
CDW Corporation's gross margin was 20.1% in Q2 2026, indicating the percentage of revenue retained after direct costs. This is down 0.7 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.9 percentage points.
CDW Corporation's operating margin was 6.5% in Q2 2026, reflecting core business profitability. This is down 0.5 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.1 percentage points.
CDW Corporation's net profit margin was 4.2% in Q2 2026, showing the share of revenue converted to profit. This is down 0.4 percentage points from the same quarter a year earlier. It is unchanged from the prior quarter.
CDW Corporation's ROE was 11.2% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is up 0.3 percentage points from the same quarter a year earlier. Against the prior quarter it is up 2.0 percentage points.
Capital Allocation
CDW Corporation spent $343.7M on share buybacks in Q2 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 129.1% from the same quarter a year earlier. Against the prior quarter it is up 71.0%.
CDW Corporation invested $27.5M in capex in Q2 2026, funding long-term assets and infrastructure. This represents an increase of 22.2% from the same quarter a year earlier. Against the prior quarter it is up 4.2%.
Not reported for Q2 2026.
CDW 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.
| 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 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $6.6B+10.0% | $5.7B+9.2% | $5.5B+6.3% | $5.7B+4.0% | $6.0B+10.2% | $5.2B+6.7% | $5.2B+3.3% | $5.5B-2.0% |
| Cost of Revenue | $5.3B+10.9% | $4.5B+10.1% | $4.3B+5.6% | $4.5B+3.8% | $4.7B+11.7% | $4.1B+7.0% | $4.0B+4.3% | $4.3B-1.9% |
| Gross Profit | $1.3B+6.3% | $1.2B+6.0% | $1.3B+8.6% | $1.3B+4.6% | $1.2B+4.9% | $1.1B+5.5% | $1.2B+0.1% | $1.2B-2.2% |
| SG&A Expenses | $891.2M+8.6% | $814.0M+7.0% | $823.7M+10.3% | $812.2M+12.9% | $821.0M+9.5% | $760.9M+3.5% | $746.7M+3.9% | $719.1M-4.0% |
| Operating Income | $428.6M+2.0% | $376.0M+4.0% | $430.7M+5.4% | $443.3M-8.0% | $420.2M-3.0% | $361.4M+10.2% | $408.6M-6.1% | $481.6M+0.7% |
| EBITDA | $503.9M+2.1% | $450.9M+3.3% | $504.8M+5.6% | $516.6M-6.2% | $493.5M-1.8% | $436.3M+10.4% | $478.1M-5.0% | $550.7M+1.2% |
| Interest Expense | $60.2M+6.0% | $55.3M-3.2% | $58.5M+3.5% | $55.0M+1.1% | $56.8M+8.6% | $57.1M+11.3% | $56.5M+206.0% | $54.4M-5.2% |
| Income Tax | $98.5M+5.1% | $83.6M+5.7% | $89.6M+2.6% | $98.4M-11.5% | $93.7M-5.0% | $79.1M+30.7% | $87.3M+3.2% | $111.2M+6.6% |
| Net Income | $274.4M+1.2% | $235.4M+4.7% | $279.5M+5.8% | $291.0M-8.0% | $271.2M-3.5% | $224.9M+4.1% | $264.2M-10.8% | $316.4M+0.3% |
| EPS (Basic) | $2.16+4.9% | $1.82+7.1% | $2.15+8.0% | $2.22-6.3% | $2.06-1.9% | $1.70+5.6% | $1.99-9.5% | $2.37+0.9% |
| EPS (Diluted) | $2.15+4.9% | $1.82+7.7% | $2.14+8.6% | $2.21-5.6% | $2.05-1.0% | $1.69+6.3% | $1.97-9.6% | $2.34+0.9% |
| Diluted Shares (Avg) | 127M-3.8% | 130M-3.0% | N/A | 132M-2.3% | 132M-2.4% | 134M-1.8% | N/A | 135M-0.7% |
Not reported in any period shown, so not listed: R&D Expenses.
CDW Balance Sheet
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.
| 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 | $17.3B+13.0% | $16.5B+9.6% | $16.0B+9.2% | $15.2B+5.7% | $15.3B+11.9% | $15.0B+13.8% | $14.7B+10.5% | $14.4B+11.7% |
| Current Assets | $9.7B+23.5% | $9.0B+17.2% | $8.5B+15.3% | $7.8B+1.5% | $7.8B+11.3% | $7.7B+15.3% | $7.4B+10.0% | $7.7B+18.6% |
| Cash & Equivalents | $361.8M-24.8% | $578.6M+22.7% | $618.7M+22.9% | $452.9M-52.2% | $481.0M-27.7% | $471.4M-41.4% | $503.5M-14.5% | $946.7M+114.8% |
| Short-Term Investments | $0 | $0-100.0% | $0-100.0% | $0-100.0% | $0 | $216.7M | $214.2M | $211.7M |
| Inventory | $981.8M+28.9% | $820.6M+13.9% | $563.4M-6.9% | $504.7M-26.1% | $761.6M+5.1% | $720.2M+7.4% | $605.3M-9.4% | $682.5M-3.4% |
| Accounts Receivable | $7.3B+30.5% | $6.5B+21.3% | $6.3B+22.9% | $5.8B+18.2% | $5.6B+19.2% | $5.3B+23.8% | $5.1B+12.4% | $4.9B+10.8% |
| Long-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Goodwill | $4.7B0.0% | $4.7B+0.3% | $4.7B+0.9% | $4.6B+4.9% | $4.7B+5.5% | $4.6B+5.1% | $4.6B+4.7% | $4.4B+0.2% |
| Total Liabilities | $14.8B+15.7% | $13.9B+9.5% | $13.4B+8.9% | $12.7B+5.2% | $12.8B+11.6% | $12.7B+14.8% | $12.3B+9.6% | $12.0B+8.7% |
| Current Liabilities | $8.3B+42.9% | $7.7B+33.2% | $7.2B+32.0% | $5.6B+2.5% | $5.8B-6.5% | $5.8B+9.9% | $5.5B+0.6% | $5.5B+14.1% |
| Non-Current Liabilities | $6.5B-6.8% | $6.2B-10.3% | $6.2B-9.6% | $7.1B+7.5% | $7.0B+33.1% | $6.9B+19.3% | $6.9B+18.1% | $6.6B+4.5% |
| Long-Term Debt | $4.8B-14.5% | $4.6B-17.6% | $4.6B-17.6% | $5.6B+0.2% | $5.6B+27.1% | $5.6B+11.8% | $5.6B+11.4% | $5.6B-1.0% |
| Total Equity | $2.4B-1.0% | $2.6B+10.0% | $2.6B+10.8% | $2.5B+8.1% | $2.5B+13.4% | $2.3B+8.6% | $2.4B+15.2% | $2.3B+29.8% |
| Retained Earnings | -$1.5B-8.9% | -$1.3B+4.8% | -$1.3B+3.7% | -$1.3B+3.0% | -$1.4B+7.7% | -$1.4B+4.9% | -$1.3B+13.3% | -$1.4B+19.9% |
CDW Cash Flow 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.
| 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 | -$55.1M-135.3% | $274.8M-4.3% | $433.8M+25.6% | $328.3M-4.0% | $155.9M+4.0% | $287.2M-34.7% | $345.3M-35.6% | $342.1M-27.0% |
| Depreciation & Amortization | $75.3M+2.7% | $74.9M0.0% | $74.1M+6.6% | $73.3M+6.1% | $73.3M+5.6% | $74.9M+11.3% | $69.5M+2.1% | $69.1M+4.7% |
| Stock-Based Compensation | N/A | $22.1M+7.8% | N/A | N/A | N/A | $20.5M+5.7% | N/A | N/A |
| Capital Expenditures | $27.5M+22.2% | $26.4M-1.9% | $37.9M+32.5% | $29.8M-11.3% | $22.5M-27.2% | $26.9M-8.8% | $28.6M-14.6% | $33.6M-22.6% |
| Free Cash Flow | -$82.6M-161.9% | $248.4M-4.6% | $395.9M+25.0% | $298.5M-3.2% | $133.4M+12.1% | $260.3M-36.6% | $316.7M-37.0% | $308.5M-27.4% |
| Investing Cash Flow | -$27.9M-115.0% | -$30.9M+3.1% | -$54.5M+84.6% | -$29.9M+87.8% | $186.5M+703.6% | -$31.9M-7.4% | -$353.7M-949.6% | -$244.9M-398.8% |
| Financing Cash Flow | -$133.0M+62.5% | -$273.2M+7.1% | -$215.8M+48.1% | -$319.5M-278.6% | -$355.1M-38.2% | -$294.1M-52.7% | -$416.2M-15.9% | $178.9M+199.3% |
| Dividends Paid | $79.8M-3.0% | $81.1M-2.1% | $81.7M-1.7% | $81.8M-1.1% | $82.3M-0.8% | $82.8M-0.6% | $83.1M0.0% | $82.7M+4.6% |
| Share Buybacks | $343.7M+129.1% | $201.0M+0.4% | $153.0M+4.8% | $149.9M+49.9% | $150.0M-25.7% | $200.1M+284.1% | $146.0M+192.0% | $100.0M+85.5% |
CDW 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.
| 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 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 20.1%-0.7pp | 20.9%-0.6pp | 22.8%+0.5pp | 21.9%+0.1pp | 20.8%-1.0pp | 21.6%-0.2pp | 22.3%-0.7pp | 21.8%0.0pp |
| Operating Margin | 6.5%-0.5pp | 6.6%-0.3pp | 7.8%-0.1pp | 7.7%-1.0pp | 7.0%-1.0pp | 7.0%+0.2pp | 7.9%-0.8pp | 8.7%+0.2pp |
| Net Margin | 4.2%-0.4pp | 4.1%-0.2pp | 5.1%0.0pp | 5.1%-0.7pp | 4.5%-0.6pp | 4.3%-0.1pp | 5.1%-0.8pp | 5.7%+0.1pp |
| Return on Equity | 11.2%+0.3pp | 9.2%-0.5pp | 10.7%-0.5pp | 11.5%-2.0pp | 11.0%-1.9pp | 9.7%-0.4pp | 11.2%-3.3pp | 13.5%-4.0pp |
| Return on Assets | 1.6%-0.2pp | 1.4%-0.1pp | 1.7%-0.1pp | 1.9%-0.3pp | 1.8%-0.3pp | 1.5%-0.1pp | 1.8%-0.4pp | 2.2%-0.3pp |
| Current Ratio | 1.17-0.2x | 1.16-0.2x | 1.18-0.2x | 1.390.0x | 1.35+0.2x | 1.32+0.1x | 1.35+0.1x | 1.40+0.1x |
| Debt-to-Equity | 1.97-0.3x | 1.81-0.6x | 1.77-0.6x | 2.21-0.2x | 2.28+0.2x | 2.42+0.1x | 2.38-0.1x | 2.39-0.7x |
| Asset Turnover | 0.380.0x | 0.350.0x | 0.340.0x | 0.380.0x | 0.390.0x | 0.350.0x | 0.350.0x | 0.38-0.1x |
| FCF Margin | -1.3%-3.5pp | 4.4%-0.6pp | 7.2%+1.1pp | 5.2%-0.4pp | 2.2%0.0pp | 5.0%-3.4pp | 6.1%-3.9pp | 5.6%-2.0pp |
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 |
|---|---|---|---|---|---|---|
| CDW Corporation CDW | FY2025 | $22.4B | $1.1B | 4.8% | $19.0B | 51/100 |
| Leidos Holdings, Inc. LDOS | FY2025 | $17.2B | $1.4B | 8.4% | $15.3B | 58/100 |
| Gartner, Inc. IT | FY2025 | $6.5B | $729.0M | 11.2% | $12.1B | 49/100 |
| Wipro Limited WIT | FY2026 | $9.9B | $1.4B | 14.3% | $16.8B | 41/100 |
| Broadridge Financial Solutions Inc BR | FY2026 | $7.5B | $1.1B | 15.0% | $18.7B | 62/100 |
Where CDW Corporation Ranks
Frequently Asked Questions
What is CDW Corporation's annual revenue?
CDW Corporation (CDW) reported $22.4B in total revenue for fiscal year 2025. This represents a 6.8% 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 CDW Corporation's revenue growing?
CDW Corporation (CDW) revenue grew by 6.8% year-over-year, from $21.0B to $22.4B in fiscal year 2025.
Is CDW Corporation profitable?
Yes, CDW Corporation (CDW) reported a net income of $1.1B in fiscal year 2025, with a net profit margin of 4.8%.
What is CDW Corporation's EBITDA?
CDW Corporation (CDW) had EBITDA of $2.0B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does CDW Corporation have?
As of fiscal year 2025, CDW Corporation (CDW) had $618.7M in cash and equivalents against $4.6B in long-term debt.
What is CDW Corporation's gross margin?
CDW Corporation (CDW) had a gross margin of 21.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is CDW Corporation's operating margin?
CDW Corporation (CDW) had an operating margin of 7.4% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is CDW Corporation's net profit margin?
CDW Corporation (CDW) had a net profit margin of 4.8% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does CDW Corporation pay dividends?
Yes, CDW Corporation (CDW) paid $2.50 per share in dividends during fiscal year 2025.
What is CDW Corporation's return on equity (ROE)?
CDW Corporation (CDW) has a return on equity of 40.9% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is CDW Corporation's free cash flow?
CDW Corporation (CDW) generated $1.1B in free cash flow during fiscal year 2025. This represents a -5.8% 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 CDW Corporation's operating cash flow?
CDW Corporation (CDW) generated $1.2B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are CDW Corporation's total assets?
CDW Corporation (CDW) had $16.0B in total assets as of fiscal year 2025, including both current and long-term assets.
What are CDW Corporation's capital expenditures?
CDW Corporation (CDW) invested $117.1M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
What is CDW Corporation's current ratio?
CDW Corporation (CDW) had a current ratio of 1.18 as of fiscal year 2025, which is considered adequate.
What is CDW Corporation's debt-to-equity ratio?
CDW Corporation (CDW) had a debt-to-equity ratio of 1.77 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is CDW Corporation's return on assets (ROA)?
CDW Corporation (CDW) had a return on assets of 6.7% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is CDW Corporation's P/E ratio?
CDW Corporation (CDW) trades at 17.6x earnings, its market capitalization divided by net income of $1.1B net income, trailing 12 months to June 30, 2026. The market capitalization is $19.0B 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 CDW Corporation's price-to-sales ratio?
CDW Corporation (CDW) trades at 0.8x sales, its market capitalization divided by revenue of $23.5B revenue, trailing 12 months to June 30, 2026. The market capitalization is $19.0B 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 CDW Corporation's Altman Z-Score?
CDW Corporation (CDW) has an Altman Z-Score of 2.57, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is CDW Corporation's Piotroski F-Score?
CDW Corporation (CDW) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. 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 CDW Corporation's earnings high quality?
CDW Corporation (CDW) has an earnings quality ratio of 1.13x, 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.
Can CDW Corporation cover its interest payments?
CDW Corporation (CDW) has an interest coverage ratio of 7.28x, meaning it can comfortably cover its interest obligations. 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.
How financially healthy is CDW Corporation?
CDW Corporation (CDW) scores 51 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.