Daqo New Energy Corp Financials
Daqo New Energy Corp (DQ) reported $665.4M in revenue for fiscal year 2025, down 35.3% 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).
A collapsed spread business is now relying on a still-strong balance sheet to absorb weak plant economics.
From FY2022 to FY2025, gross margin swung from73.9% to-20.7% , showing the core problem is the selling-price-versus-production-cost spread, not just overhead. Yet operating cash flow returned to$49.7M as capex fell to$173.0M , so the immediate strain is under-earning a large asset base more than a short-term cash squeeze.
FY2025 EBITDA was only
Liquidity still looks comfortable, with a current ratio of 5.4x and cash of
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 Daqo New Energy Corp'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.
Daqo New Energy Corp has an operating margin of -40.6%, meaning the company loses $41 on every $100 of revenue. This results in a profitability score of 12/100. This is up from -54.8% the prior year.
Daqo New Energy Corp's revenue declined 35.3% year-over-year, from $1.0B to $665.4M. This contraction results in a growth score of 2/100.
Daqo New Energy Corp has a moderate D/E ratio of 0.46. This balance of debt and equity financing earns a leverage score of 61/100.
With a current ratio of 5.37, Daqo New Energy Corp holds $5.37 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 91/100.
While Daqo New Energy Corp generated $49.7M in operating cash flow, capex of $173.0M consumed most of it, leaving -$123.3M in free cash flow. This results in a low score of 11/100, reflecting heavy capital investment rather than weak cash generation.
Daqo New Energy Corp posts a -3.9% return on equity (ROE), meaning it loses $4 for every $100 of shareholders' equity. This results in a returns score of 30/100. This is up from -7.9% the prior year.
Daqo New Energy Corp scores 1.25, below the 1.81 distress threshold. This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Daqo New Energy Corp passes 4 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 3 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, neither operating efficiency signal passes.
Daqo New Energy Corp reported a net loss of $170.5M while generating $49.7M in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, the ratio between the two carries no quality signal.
Daqo New Energy Corp reported an operating loss of $270.2M against $9.0M 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
Earnings & Revenue
Daqo New Energy Corp generated $665.4M in revenue in fiscal year 2025. This represents a decrease of 35.3% from the prior year.
Daqo New Energy Corp's EBITDA was -$33.6M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 90.6% from the prior year.
Daqo New Energy Corp reported -$170.5M in net income in fiscal year 2025. This represents an increase of 50.6% from the prior year.
Daqo New Energy Corp earned -$0.51 per diluted share (EPS) in fiscal year 2025. This represents an increase of 51.0% from the prior year.
Cash & Balance Sheet
Daqo New Energy Corp recorded an outflow of $123.3M in free cash flow in fiscal year 2025, representing a cash shortfall after capex. This represents an increase of 84.5% from the prior year.
Daqo New Energy Corp held $856.1M in cash as of fiscal year 2025; long-term debt is not reported for that period.
Not reported for fiscal year 2025.
Margins & Returns
Daqo New Energy Corp's gross margin was -20.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. That is unchanged from the prior year.
Daqo New Energy Corp's operating margin was -40.6% in fiscal year 2025, reflecting core business profitability. This is up 14.2 percentage points from the prior year.
Daqo New Energy Corp's net profit margin was -25.6% in fiscal year 2025, showing the share of revenue converted to profit. This is up 7.9 percentage points from the prior year.
Daqo New Energy Corp's ROE was -3.9% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 4.1 percentage points from the prior year.
Capital Allocation
Daqo New Energy Corp invested $2.6M in research and development in fiscal year 2025. This represents a decrease of 43.3% from the prior year.
Daqo New Energy Corp invested $173.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 51.8% from the prior year.
Not reported for fiscal year 2025.
DQ Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $665.4M-35.3% | $1.0B-55.4% | $2.3B-49.9% | $4.6B+174.5% | $1.7B+148.5% | $675.6M+93.0% | $350.0M+16.0% | $301.6M-6.7% | $323.2M+64.7% | $196.2M+7.8% | $182.0M-0.3% | $182.6M+67.5% | $109.0M+25.5% | $86.9M-62.6% | $232.2M |
| Cost of Revenue | $803.3M-35.3% | $1.2B-10.5% | $1.4B+15.5% | $1.2B+106.4% | $581.6M+31.7% | $441.6M+63.6% | $269.9M+32.6% | $203.5M+13.6% | $179.2M+51.3% | $118.4M-18.1% | $144.5M+3.7% | $139.3M+3.1% | $135.1M+8.7% | $124.3M-14.3% | $144.9M |
| Gross Profit | -$137.9M+35.3% | -$212.9M-123.1% | $920.6M-73.0% | $3.4B+210.6% | $1.1B+368.9% | $234.0M+192.1% | $80.1M-18.4% | $98.1M-31.9% | $144.0M+85.1% | $77.8M+107.2% | $37.5M-13.2% | $43.3M+265.7% | -$26.1M+30.3% | -$37.4M-142.9% | $87.2M |
| R&D Expenses | $2.6M-43.3% | $4.6M-54.9% | $10.1M+0.7% | $10.0M+54.6% | $6.5M-5.3% | $6.9M+20.1% | $5.7M+108.5% | $2.7M+304.7% | $676K-82.6% | $3.9M+319.9% | $924K-37.9% | $1.5M-56.1% | $3.4M-17.9% | $4.1M+454.9% | $744K |
| SG&A Expenses | $118.2M-17.4% | $143.1M-32.9% | $213.2M-39.8% | $354.1M+787.3% | $39.9M+1.1% | $39.5M+21.6% | $32.5M+19.9% | $27.1M+68.8% | $16.0M+6.4% | $15.1M+19.7% | $12.6M+22.4% | $10.3M-43.2% | $18.1M+40.2% | $12.9M-1.2% | $13.1M |
| Operating Income | -$270.2M+52.1% | -$564.1M-172.0% | $783.4M-74.2% | $3.0B+189.2% | $1.1B+459.7% | $187.9M+295.6% | $47.5M-41.5% | $81.2M-37.9% | $130.8M+114.0% | $61.1M+133.1% | $26.2M-18.1% | $32.0M+116.0% | -$200.6M-126.7% | -$88.5M-274.4% | $50.8M |
| Interest Expense | $9.0M-70.1% | $30.2M-42.2% | $52.3M+261.4% | $14.5M-29.3% | $20.5M-20.4% | $25.7M+173.3% | $9.4M-12.5% | $10.8M-33.8% | $16.3M+27.8% | $12.7M-3.4% | $13.2M-15.8% | $15.7M-19.1% | $19.3M+25.6% | $15.4M+66.4% | $9.3M |
| Income Tax | -$21.0M+69.9% | -$69.9M-142.2% | $165.6M-71.3% | $577.2M+239.4% | $170.1M+503.6% | $28.2M+192.9% | $9.6M-17.9% | $11.7M-32.4% | $17.3M+135.6% | $7.4M+546.7% | $1.1M | N/A | $1.3M-87.6% | $10.3M+277.3% | $2.7M |
| Net Income | -$170.5M+50.6% | -$345.2M-180.4% | $429.5M-76.4% | $1.8B+143.0% | $748.9M+479.7% | $129.2M+337.6% | $29.5M-22.6% | $38.1M-58.9% | $92.8M+113.5% | $43.5M+235.7% | $13.0M-22.2% | $16.6M+123.5% | -$70.9M+36.6% | -$111.9M-435.9% | $33.3M |
| EPS (Diluted) | -$0.51+51.0% | -$1.04-190.4% | $1.15-75.4% | $4.67+139.5% | $1.95+473.5% | $0.34+325.0% | $0.08-33.3% | $0.12-64.7% | $0.34+112.5% | $0.16+220.0% | $0.05-37.5% | $0.08+119.5% | -$0.41+35.9% | -$0.64-436.8% | $0.19 |
DQ Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $6.4B+0.5% | $6.4B-13.6% | $7.4B-2.2% | $7.6B+127.1% | $3.3B+169.8% | $1.2B+3.1% | $1.2B+40.5% | $854.9M+14.2% | $748.8M+14.0% | $656.7M-0.6% | $660.9M-6.9% | $710.1M+16.4% | $610.2M-25.2% | $816.3M-7.1% | $878.5M |
| Current Assets | $2.7B+2.5% | $2.6B-26.4% | $3.6B-26.8% | $4.9B+180.5% | $1.7B+866.9% | $180.3M+3.4% | $174.3M+8.9% | $160.1M+12.4% | $142.4M+94.2% | $73.3M-17.4% | $88.8M-27.2% | $121.9M+33.8% | $91.1M-5.6% | $96.5M-46.2% | $179.5M |
| Cash & Equivalents | $856.1M-15.0% | $1.0B-66.9% | $3.0B-13.2% | $3.5B+383.5% | $723.8M+844.9% | $76.6M+45.4% | $52.7M-20.7% | $66.4M+9.4% | $60.7M+279.5% | $16.0M+10.3% | $14.5M+105.0% | $7.1M-9.7% | $7.8M+17.2% | $6.7M-92.8% | $92.7M |
| Inventory | $169.1M+12.8% | $149.9M-13.5% | $173.3M+2.2% | $169.5M-48.3% | $327.8M+677.5% | $42.2M+15.9% | $36.4M+135.6% | $15.4M-1.5% | $15.7M+27.7% | $12.3M+14.6% | $10.7M+11.8% | $9.6M-8.7% | $10.5M-30.6% | $15.1M-37.4% | $24.2M |
| Accounts Receivable | N/A | N/A | N/A | $0 | $0 | $0-100.0% | $13K-98.9% | $1.2M+68.5% | $701K-85.5% | $4.8M-75.6% | $19.8M+127.8% | $8.7M-12.1% | $9.9M-64.4% | $27.8M+45.8% | $19.1M |
| Total Liabilities | $2.0B-0.7% | $2.1B-22.8% | $2.7B-4.4% | $2.8B+309.9% | $679.8M+54.4% | $440.2M-30.6% | $634.2M+92.3% | $329.8M-6.9% | $354.3M-8.0% | $385.0M-8.2% | $419.2M-16.7% | $503.4M+6.4% | $472.9M-0.5% | $475.4M+11.5% | $426.5M |
| Current Liabilities | $501.6M-3.8% | $521.2M-37.7% | $836.4M+13.6% | $736.5M+33.8% | $550.5M+93.7% | $284.1M-36.2% | $445.1M+197.1% | $149.9M-30.8% | $216.5M-13.3% | $249.8M-9.3% | $275.4M-30.5% | $396.1M+32.4% | $299.1M+14.9% | $260.3M+19.5% | $217.8M |
| Long-Term Debt | N/A | N/A | N/A | N/A | $0-100.0% | $123.2M-18.7% | $151.5M+13.7% | $133.3M+19.6% | $111.4M-0.5% | $111.9M-5.6% | $118.5M+53.3% | $77.3M-42.7% | $134.9M-28.1% | $187.5M+13.2% | $165.6M |
| Total Equity | $4.4B+1.0% | $4.4B-8.4% | $4.8B-0.9% | $4.8B+122.4% | $2.2B+181.8% | $767.1M+35.4% | $566.6M+7.9% | $525.1M+34.1% | $391.7M+45.0% | $270.1M+12.4% | $240.4M+16.2% | $206.8M+50.6% | $137.3M-32.1% | $202.1M-35.1% | $311.2M |
| Retained Earnings | $2.8B-5.7% | $3.0B-10.4% | $3.3B+14.8% | $2.9B+168.6% | $1.1B+226.9% | $330.1M+64.3% | $200.9M+17.2% | $171.4M+28.6% | $133.3M+229.6% | $40.4M+1420.7% | -$3.1M+80.9% | -$16.0M+51.0% | -$32.7M-185.3% | $38.3M-74.5% | $150.2M |
Not reported in any period shown, so not listed: Goodwill.
DQ Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $49.7M+111.4% | -$435.4M-126.9% | $1.6B-34.4% | $2.5B+285.4% | $639.0M+204.7% | $209.7M+15.9% | $181.0M+89.4% | $95.6M-33.0% | $142.7M+44.6% | $98.7M+48.5% | $66.4M+45.6% | $45.6M+376.1% | -$16.5M-60.3% | -$10.3M-123.0% | $44.9M |
| Capital Expenditures | $173.0M-51.8% | $358.8M-67.7% | $1.1B-7.8% | $1.2B+141.8% | $498.5M+321.4% | $118.3M-57.6% | $279.0M+95.0% | $143.1M+123.2% | $64.1M-3.6% | $66.5M-18.3% | $81.4M+5.6% | $77.0M+137.0% | $32.5M-69.2% | $105.7M-58.2% | $252.7M |
| Free Cash Flow | -$123.3M+84.5% | -$794.3M-257.2% | $505.3M-59.8% | $1.3B+795.0% | $140.5M+53.7% | $91.4M+193.2% | -$98.1M-106.4% | -$47.5M-160.4% | $78.6M+144.4% | $32.2M+315.3% | -$14.9M+52.4% | -$31.4M+35.9% | -$49.0M+57.7% | -$116.0M+44.2% | -$207.8M |
| Investing Cash Flow | -$134.2M+90.9% | -$1.5B-23.8% | -$1.2B-19.8% | -$998.4M-27.7% | -$781.9M-559.9% | -$118.5M+54.7% | -$261.8M-59.0% | -$164.7M-142.6% | -$67.9M+0.2% | -$68.1M+8.2% | -$74.1M | N/A | N/A | -$102.9M+62.5% | -$274.1M |
| Financing Cash Flow | -$850K+98.2% | -$47.4M+94.0% | -$795.4M-154.0% | $1.5B+100.0% | $736.2M+871.2% | -$95.5M-193.3% | $102.3M+18.0% | $86.7M+332.1% | -$37.4M-23.4% | -$30.3M-298.7% | $15.2M | N/A | N/A | $27.1M-75.9% | $112.8M |
| Share Buybacks | N/A | $5.0M-99.0% | $485.9M+289.0% | $124.9M | N/A | N/A | N/A | N/A | N/A | N/A | $1.4M | N/A | N/A | $501K | N/A |
Not reported in any period shown, so not listed: Dividends Paid.
DQ Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | -20.7%0.0pp | -20.7%-60.6pp | 39.9%-34.1pp | 74.0%+8.6pp | 65.4%+30.7pp | 34.6%+11.7pp | 22.9%-9.6pp | 32.5%-12.0pp | 44.6%+4.9pp | 39.7%+19.0pp | 20.6%-3.1pp | 23.7%+47.6pp | -23.9%+19.1pp | -43.1%-80.7pp | 37.6% |
| Operating Margin | -40.6%+14.2pp | -54.8%-88.8pp | 34.0%-32.0pp | 66.0%+3.4pp | 62.6%+34.8pp | 27.8%+14.2pp | 13.6%-13.4pp | 26.9%-13.6pp | 40.5%+9.3pp | 31.2%+16.8pp | 14.4%-3.1pp | 17.5% | -184.1% | -101.9% | 21.9% |
| Net Margin | -25.6%+7.9pp | -33.6%-52.2pp | 18.6%-20.9pp | 39.5%-5.1pp | 44.6%+25.5pp | 19.1%+10.7pp | 8.4%-4.2pp | 12.6%-16.1pp | 28.7%+6.6pp | 22.2%+15.1pp | 7.1%-2.0pp | 9.1%+74.2pp | -65.1% | -128.9% | 14.3% |
| Return on Equity | -3.9%+4.1pp | -7.9%-16.9pp | 9.0%-28.8pp | 37.9%+3.2pp | 34.6%+17.8pp | 16.8%+11.6pp | 5.2%-2.0pp | 7.3%-16.4pp | 23.7%+7.6pp | 16.1%+10.7pp | 5.4%-2.7pp | 8.1%+59.7pp | -51.7%+3.7pp | -55.4%-66.1pp | 10.7% |
| Return on Assets | -2.6%+2.7pp | -5.4%-11.2pp | 5.8%-18.2pp | 24.0%+1.6pp | 22.4%+12.0pp | 10.4%+8.0pp | 2.5%-2.0pp | 4.5%-7.9pp | 12.4%+5.8pp | 6.6%+4.7pp | 2.0%-0.4pp | 2.3%+14.0pp | -11.6%+2.1pp | -13.7%-17.5pp | 3.8% |
| Current Ratio | 5.37+0.3x | 5.05+0.8x | 4.28-2.4x | 6.64+3.5x | 3.17+2.5x | 0.63+0.2x | 0.39-0.7x | 1.07+0.4x | 0.66+0.4x | 0.290.0x | 0.320.0x | 0.310.0x | 0.30-0.1x | 0.37-0.5x | 0.82 |
| Debt-to-Equity | 0.460.0x | 0.47-0.1x | 0.560.0x | 0.58+0.6x | 0.00-0.2x | 0.16-0.1x | 0.270.0x | 0.250.0x | 0.28-0.1x | 0.41-0.1x | 0.49+0.1x | 0.37-0.6x | 0.98+0.1x | 0.93+0.4x | 0.53 |
| FCF Margin | -18.5%+58.6pp | -77.2%-99.1pp | 21.9%-5.4pp | 27.3%+18.9pp | 8.4%-5.2pp | 13.5%+41.5pp | -28.0%-12.3pp | -15.8%-40.1pp | 24.3%+7.9pp | 16.4%+24.6pp | -8.2%+9.0pp | -17.2%+27.8pp | -45.0% | -133.5% | -89.5% |
Reported as filed but not readable as a share of revenue in the periods where the ratio runs further from zero than a revenue base allows; no change figure is given where either compared period is one of those: Operating Margin, Net Margin, FCF Margin.
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Where Daqo New Energy Corp Ranks
Frequently Asked Questions
What is Daqo New Energy Corp's annual revenue?
Daqo New Energy Corp (DQ) reported $665.4M in total revenue for fiscal year 2025. This represents a -35.3% 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 Daqo New Energy Corp's revenue growing?
Daqo New Energy Corp (DQ) revenue declined by 35.3% year-over-year, from $1.0B to $665.4M in fiscal year 2025.
Is Daqo New Energy Corp profitable?
No, Daqo New Energy Corp (DQ) reported a net income of -$170.5M in fiscal year 2025, with a net profit margin of -25.6%.
What is Daqo New Energy Corp's EBITDA?
Daqo New Energy Corp (DQ) had EBITDA of -$33.6M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Daqo New Energy Corp's gross margin?
Daqo New Energy Corp (DQ) had a gross margin of -20.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Daqo New Energy Corp's operating margin?
Daqo New Energy Corp (DQ) had an operating margin of -40.6% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Daqo New Energy Corp's net profit margin?
Daqo New Energy Corp (DQ) had a net profit margin of -25.6% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Daqo New Energy Corp's return on equity (ROE)?
Daqo New Energy Corp (DQ) has a return on equity of -3.9% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Daqo New Energy Corp's free cash flow?
Daqo New Energy Corp (DQ) recorded an outflow of $123.3M in free cash flow during fiscal year 2025. This represents a 84.5% 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 Daqo New Energy Corp's operating cash flow?
Daqo New Energy Corp (DQ) generated $49.7M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Daqo New Energy Corp's total assets?
Daqo New Energy Corp (DQ) had $6.4B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Daqo New Energy Corp's capital expenditures?
Daqo New Energy Corp (DQ) invested $173.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Daqo New Energy Corp spend on research and development?
Daqo New Energy Corp (DQ) invested $2.6M in research and development during fiscal year 2025.
What is Daqo New Energy Corp's current ratio?
Daqo New Energy Corp (DQ) had a current ratio of 5.37 as of fiscal year 2025, which is generally considered healthy.
What is Daqo New Energy Corp's debt-to-equity ratio?
Daqo New Energy Corp (DQ) had a debt-to-equity ratio of 0.46 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Daqo New Energy Corp's return on assets (ROA)?
Daqo New Energy Corp (DQ) had a return on assets of -2.6% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Daqo New Energy Corp's Altman Z-Score?
Daqo New Energy Corp (DQ) has an Altman Z-Score of 1.25, placing it in the Distress Zone (elevated bankruptcy 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 Daqo New Energy Corp's Piotroski F-Score?
Daqo New Energy Corp (DQ) has a Piotroski F-Score of 4 out of 8 computable signals; 1 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 Daqo New Energy Corp's earnings high quality?
Daqo New Energy Corp (DQ) reported a net loss of $170.5M while generating $49.7M in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, 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 Daqo New Energy Corp cover its interest payments?
Daqo New Energy Corp (DQ) reported an operating loss of $270.2M against $9.0M 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.
How financially healthy is Daqo New Energy Corp?
Daqo New Energy Corp (DQ) scores 35 out of 100 on our Financial Health Score, indicating weak 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.