What is Energy Recovery Inc's earnings per share (EPS)?

Energy Recovery Inc (ERII) reported diluted earnings per share of $0.42 for fiscal year 2025. This represents a 5.0% 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.

Energy Recovery Inc Financials

ERII

Source SEC Filings (10-K/10-Q) Updated Dec 31, 2025 Currency USD FYE December

This page shows Energy Recovery Inc (ERII) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 17 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).

Financial Health Signals

Financial Profile 63/100

Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability

Energy Recovery Inc has an operating margin of 17.7%, meaning the company retains $18 of operating profit per $100 of revenue. This results in a moderate score of 62/100, indicating healthy but not exceptional operating efficiency. This is up from 13.6% the prior year.

Growth

Energy Recovery Inc's revenue declined 6.9% year-over-year, from $144.9M to $135.0M. This contraction results in a growth score of 22/100.

Leverage

100

Energy Recovery Inc carries a low D/E ratio of 0.12, meaning only $0.12 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

100

With a current ratio of 10.44, Energy Recovery Inc holds $10.44 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 100/100.

Cash Flow

Energy Recovery Inc has a free cash flow margin of 12.9%, earning a moderate score of 57/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns

Energy Recovery Inc's ROE of 11.1% shows moderate profitability relative to equity, earning a score of 36/100. This is up from 11.0% the prior year.

Altman Z-Score Safe

15.34

Energy Recovery Inc scores 15.34, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($539.9M) relative to total liabilities ($25.3M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Piotroski F-Score Neutral

5/9

Energy Recovery Inc 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.

Earnings Quality Mixed

0.82x

For every $1 of reported earnings, Energy Recovery Inc generates $0.82 in operating cash flow ($18.8M OCF vs $23.0M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.

Key Financial Metrics

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Earnings & Revenue

Revenue

$135.0M

YoY-6.9%

5Y CAGR+2.6%

10Y CAGR+11.9%

Energy Recovery Inc generated $135.0M in revenue in fiscal year 2025. This represents a decrease of 6.9% from the prior year.

EBITDA

$27.6M

YoY+16.3%

5Y CAGR-4.7%

Energy Recovery Inc's EBITDA was $27.6M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 16.3% from the prior year.

Net Income

$23.0M

YoY-0.4%

5Y CAGR-2.7%

Energy Recovery Inc reported $23.0M in net income in fiscal year 2025. This represents a decrease of 0.4% from the prior year.

EPS (Diluted)

$0.42

YoY+5.0%

5Y CAGR-2.2%

Energy Recovery Inc earned $0.42 per diluted share (EPS) in fiscal year 2025. This represents an increase of 5.0% from the prior year.

Cash & Balance Sheet

Free Cash Flow

$17.4M

YoY-9.3%

5Y CAGR+11.6%

10Y CAGR-12.8%

Energy Recovery Inc generated $17.4M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 9.3% from the prior year.

Cash & Debt

$48.1M

YoY+62.3%

5Y CAGR-12.6%

10Y CAGR-7.1%

Energy Recovery Inc held $48.1M in cash against $0 in long-term debt as of fiscal year 2025.

Dividends Per Share

N/A

Shares Outstanding

53M

YoY-3.6%

5Y CAGR-1.3%

10Y CAGR+0.1%

Energy Recovery Inc had 53M shares outstanding in fiscal year 2025. This represents a decrease of 3.6% from the prior year.

Margins & Returns

Gross Margin

65.1%

YoY-1.7pp

10Y CAGR+8.9pp

Energy Recovery Inc's gross margin was 65.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 1.7 percentage points from the prior year.

Operating Margin

17.7%

YoY+4.1pp

5Y CAGR-8.6pp

10Y CAGR+44.7pp

Energy Recovery Inc's operating margin was 17.7% in fiscal year 2025, reflecting core business profitability. This is up 4.1 percentage points from the prior year.

Net Margin

17.0%

YoY+1.1pp

5Y CAGR-5.2pp

10Y CAGR+43.7pp

Energy Recovery Inc's net profit margin was 17.0% in fiscal year 2025, showing the share of revenue converted to profit. This is up 1.1 percentage points from the prior year.

Return on Equity

11.1%

YoY+0.2pp

5Y CAGR-4.2pp

10Y CAGR+29.2pp

Energy Recovery Inc's ROE was 11.1% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 0.2 percentage points from the prior year.

Capital Allocation

R&D Spending

$13.0M

YoY-19.7%

5Y CAGR-11.1%

10Y CAGR+5.5%

Energy Recovery Inc invested $13.0M in research and development in fiscal year 2025. This represents a decrease of 19.7% from the prior year.

Share Buybacks

$35.6M

YoY-29.3%

Energy Recovery Inc spent $35.6M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 29.3% from the prior year.

Capital Expenditures

$1.3M

YoY+2.5%

5Y CAGR-27.8%

10Y CAGR+8.8%

Energy Recovery Inc invested $1.3M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 2.5% from the prior year.

ERII Income Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Revenue	$135.0M-6.9%	$144.9M+12.9%	$128.3M+2.2%	$125.6M+20.9%	$103.9M-12.7%	$119.0M
Cost of Revenue	$47.1M-2.0%	$48.0M+16.3%	$41.3M+7.9%	$38.2M+17.0%	$32.7M	N/A
Gross Profit	$87.9M-9.3%	$96.9M+11.3%	$87.1M-0.3%	$87.4M+22.6%	$71.2M	N/A
R&D Expenses	$13.0M-19.7%	$16.2M-4.5%	$17.0M-5.1%	$17.9M-10.8%	$20.1M-14.4%	$23.4M
SG&A Expenses	$29.8M-10.0%	$33.1M+14.6%	$28.9M+1.8%	$28.3M+12.6%	$25.2M-1.4%	$25.5M
Operating Income	$23.9M+21.1%	$19.7M+3.5%	$19.1M-23.3%	$24.8M+79.5%	$13.8M-55.8%	$31.3M
Interest Expense	N/A	N/A	N/A	N/A	N/A	$0
Income Tax	$4.6M+72.6%	$2.7M+123.6%	$1.2M-40.6%	$2.0M+863.0%	-$265K-104.6%	$5.7M
Net Income	$23.0M-0.4%	$23.1M+7.2%	$21.5M-10.6%	$24.0M+68.5%	$14.3M-45.9%	$26.4M
EPS (Diluted)	$0.42+5.0%	$0.40+8.1%	$0.37-11.9%	$0.42+75.0%	$0.24-48.9%	$0.47

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Revenue	$66.9M+109.0%	$32.0M+14.1%	$28.1M+247.8%	$8.1M-88.0%	$67.1M+73.8%	$38.6M+41.9%	$27.2M+125.0%	$12.1M
Cost of Revenue	$21.9M+91.5%	$11.4M+13.3%	$10.1M+179.9%	$3.6M-81.9%	$20.0M+48.1%	$13.5M+39.9%	$9.6M+94.4%	$5.0M
Gross Profit	$45.0M+118.7%	$20.6M+14.5%	$18.0M+302.7%	$4.5M-90.5%	$47.1M+87.6%	$25.1M+43.0%	$17.6M+146.2%	$7.1M
R&D Expenses	$2.9M-20.6%	$3.7M+6.3%	$3.5M+15.0%	$3.0M-24.4%	$4.0M+0.1%	$4.0M+0.6%	$3.9M-9.4%	$4.4M
SG&A Expenses	$6.0M-20.0%	$7.5M-2.0%	$7.7M-10.6%	$8.6M+3.3%	$8.3M+8.2%	$7.7M-19.5%	$9.5M+26.0%	$7.6M
Operating Income	$31.3M+755.1%	$3.7M+148.4%	$1.5M+111.7%	-$12.6M-149.0%	$25.6M+263.0%	$7.1M+450.4%	-$2.0M+81.6%	-$10.9M
Interest Expense	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Income Tax	$5.2M+667.9%	$680K+103.6%	$334K+120.8%	-$1.6M-147.4%	$3.4M+883.7%	$344K+42.1%	$242K+118.8%	-$1.3M
Net Income	$26.9M+594.7%	$3.9M+88.6%	$2.1M+120.8%	-$9.9M-142.1%	$23.5M+176.7%	$8.5M+1421.0%	-$642K+92.2%	-$8.3M
EPS (Diluted)	N/A	$0.07+75.0%	$0.04+122.2%	$-0.18	N/A	$0.15+1600.0%	$-0.01+92.9%	$-0.14

ERII Balance Sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Total Assets	$231.5M-4.6%	$242.8M-4.0%	$253.0M+16.6%	$217.0M+1.6%	$213.7M+4.6%	$204.3M
Current Assets	$181.2M+4.4%	$173.7M-6.4%	$185.5M+17.5%	$157.9M+4.0%	$151.8M+6.0%	$143.2M
Cash & Equivalents	$48.1M+62.3%	$29.6M-56.5%	$68.1M+20.8%	$56.4M-24.2%	$74.4M-21.1%	$94.3M
Inventory	$24.3M-2.6%	$24.9M-4.8%	$26.1M-7.8%	$28.4M+39.2%	$20.4M+73.5%	$11.7M
Accounts Receivable	$76.6M+19.6%	$64.1M+36.5%	$46.9M+37.8%	$34.1M+65.2%	$20.6M+74.8%	$11.8M
Goodwill	$12.8M0.0%	$12.8M0.0%	$12.8M0.0%	$12.8M0.0%	$12.8M0.0%	$12.8M
Total Liabilities	$25.3M-22.8%	$32.8M-1.2%	$33.2M+4.6%	$31.7M-9.2%	$34.9M+6.8%	$32.7M
Current Liabilities	$17.4M-25.9%	$23.4M+9.1%	$21.5M+17.3%	$18.3M-7.5%	$19.8M+25.8%	$15.7M
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	$206.2M-1.8%	$210.0M-4.5%	$219.8M+18.6%	$185.3M+3.7%	$178.8M+4.2%	$171.6M
Retained Earnings	$128.7M+21.7%	$105.7M+27.9%	$82.7M+35.2%	$61.2M+64.8%	$37.1M+62.5%	$22.8M

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Total Assets	$231.5M+10.4%	$209.6M-1.2%	$212.3M-5.8%	$225.4M-7.2%	$242.8M-7.6%	$262.7M+5.5%	$249.0M+2.0%	$244.3M
Current Assets	$181.2M+16.4%	$155.6M+2.3%	$152.1M-1.6%	$154.6M-11.0%	$173.7M-8.6%	$189.9M+19.4%	$159.0M-10.8%	$178.4M
Cash & Equivalents	$48.1M+2.1%	$47.1M-17.4%	$57.0M+16.1%	$49.1M+65.9%	$29.6M-53.2%	$63.3M+56.9%	$40.3M-43.0%	$70.8M
Inventory	$24.3M-27.7%	$33.6M+2.8%	$32.7M+0.8%	$32.4M+30.1%	$24.9M-25.6%	$33.5M-0.6%	$33.7M+6.3%	$31.7M
Accounts Receivable	$76.6M+74.1%	$44.0M+35.1%	$32.6M+0.6%	$32.4M-49.4%	$64.1M+101.2%	$31.8M+54.1%	$20.7M-17.5%	$25.1M
Goodwill	$12.8M0.0%	$12.8M0.0%	$12.8M0.0%	$12.8M0.0%	$12.8M0.0%	$12.8M0.0%	$12.8M0.0%	$12.8M
Total Liabilities	$25.3M-12.1%	$28.8M+6.4%	$27.1M-0.8%	$27.3M-16.8%	$32.8M+13.7%	$28.8M-5.6%	$30.5M+8.2%	$28.2M
Current Liabilities	$17.4M-18.2%	$21.2M+12.6%	$18.8M+2.2%	$18.4M-21.3%	$23.4M+24.1%	$18.9M-5.8%	$20.0M+16.9%	$17.1M
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	$206.2M+14.0%	$180.8M-2.4%	$185.2M-6.5%	$198.1M-5.7%	$210.0M-10.2%	$233.9M+7.0%	$218.5M+1.1%	$216.0M
Retained Earnings	$128.7M+26.5%	$101.8M+4.0%	$97.9M+2.1%	$95.8M-9.3%	$105.7M+28.5%	$82.2M+11.5%	$73.8M-0.9%	$74.4M

ERII Cash Flow Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Operating Cash Flow	$18.8M-8.5%	$20.5M-21.2%	$26.1M+106.3%	$12.6M-6.6%	$13.5M-19.8%	$16.9M
Capital Expenditures	$1.3M+2.5%	$1.3M-49.4%	$2.6M-39.3%	$4.2M-36.7%	$6.7M-1.5%	$6.8M
Free Cash Flow	$17.4M-9.3%	$19.2M-18.2%	$23.5M+179.6%	$8.4M+22.8%	$6.8M-32.2%	$10.1M
Investing Cash Flow	$34.0M+317.1%	-$15.7M+18.1%	-$19.1M-175.2%	-$6.9M+66.2%	-$20.6M-144.1%	$46.6M
Financing Cash Flow	-$34.5M+20.2%	-$43.3M-1002.9%	$4.8M+120.3%	-$23.7M-85.0%	-$12.8M-392.5%	$4.4M
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	$35.6M-29.3%	$50.4M	$0-100.0%	$26.7M+14.2%	$23.3M	$0

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Operating Cash Flow	$7.1M+326.0%	-$3.1M-175.5%	$4.1M-61.2%	$10.7M+19.2%	$9.0M+398.2%	-$3.0M-137.2%	$8.1M+24.3%	$6.5M
Capital Expenditures	$662K+93.6%	$342K+153.3%	$135K-29.3%	$191K+83.7%	$104K-38.5%	$169K-15.9%	$201K-75.6%	$824K
Free Cash Flow	$6.4M+284.7%	-$3.5M-186.6%	$4.0M-61.8%	$10.5M+18.5%	$8.9M+379.0%	-$3.2M-140.3%	$7.9M+38.8%	$5.7M
Investing Cash Flow	-$3.0M-187.8%	$3.4M-83.5%	$20.9M+64.8%	$12.7M+94.5%	$6.5M-69.9%	$21.7M+155.8%	-$38.8M-679.1%	-$5.0M
Financing Cash Flow	-$3.1M+70.0%	-$10.4M+39.4%	-$17.2M-342.7%	-$3.9M+92.1%	-$49.1M-1243.2%	$4.3M+1276.0%	$312K-73.8%	$1.2M
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	$3.4M-67.5%	$10.6M-38.0%	$17.1M+280.6%	$4.5M-91.1%	$50.4M	$0	$0	$0

ERII Financial Ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Gross Margin	65.1%-1.7pp	66.9%-1.0pp	67.8%-1.7pp	69.6%+1.0pp	68.6%	N/A
Operating Margin	17.7%+4.1pp	13.6%-1.2pp	14.8%-4.9pp	19.8%+6.5pp	13.3%-13.0pp	26.3%
Net Margin	17.0%+1.1pp	15.9%-0.9pp	16.8%-2.4pp	19.1%+5.4pp	13.7%-8.4pp	22.2%
Return on Equity	11.1%+0.2pp	11.0%+1.2pp	9.8%-3.2pp	13.0%+5.0pp	8.0%-7.4pp	15.4%
Return on Assets	9.9%+0.4pp	9.5%+1.0pp	8.5%-2.6pp	11.1%+4.4pp	6.7%-6.2pp	12.9%
Current Ratio	10.44+3.0	7.41-1.2	8.64+0.0	8.63+1.0	7.67-1.4	9.10
Debt-to-Equity	0.12-0.0	0.160.0	0.15-0.0	0.17-0.0	0.200.0	0.19
FCF Margin	12.9%-0.3pp	13.3%-5.0pp	18.3%+11.6pp	6.7%+0.1pp	6.6%-1.9pp	8.5%

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Gross Margin	67.2%+3.0pp	64.2%+0.2pp	64.0%+8.7pp	55.3%-15.0pp	70.3%+5.2pp	65.1%+0.5pp	64.6%+5.6pp	59.0%
Operating Margin	46.8%+35.4pp	11.4%+6.2pp	5.3%+161.0pp	-155.8%-194.0pp	38.2%+19.9pp	18.3%+25.7pp	-7.4%+83.0pp	-90.4%
Net Margin	40.3%+28.1pp	12.1%+4.8pp	7.3%+129.8pp	-122.5%-157.5pp	35.0%+13.0pp	22.0%+24.3pp	-2.4%+66.0pp	-68.3%
Return on Equity	13.1%+10.9pp	2.1%+1.0pp	1.1%+6.1pp	-5.0%-16.2pp	11.2%+7.5pp	3.6%+3.9pp	-0.3%+3.5pp	-3.8%
Return on Assets	11.6%+9.8pp	1.8%+0.9pp	1.0%+5.3pp	-4.4%-14.0pp	9.7%+6.4pp	3.2%+3.5pp	-0.3%+3.1pp	-3.4%
Current Ratio	10.44+3.1	7.33-0.7	8.08-0.3	8.39+1.0	7.41-2.7	10.06+2.1	7.94-2.5	10.41
Debt-to-Equity	0.12-0.0	0.16+0.0	0.150.0	0.14-0.0	0.16+0.0	0.12-0.0	0.140.0	0.13
FCF Margin	9.6%+20.4pp	-10.8%-25.1pp	14.3%-115.7pp	130.0%+116.8pp	13.2%+21.4pp	-8.2%-37.2pp	28.9%-18.0pp	46.9%

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Frequently Asked Questions

What is Energy Recovery Inc's annual revenue?

Energy Recovery Inc (ERII) reported $135.0M in total revenue for fiscal year 2025. This represents a -6.9% 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 Energy Recovery Inc's revenue growing?

Energy Recovery Inc (ERII) revenue declined by 6.9% year-over-year, from $144.9M to $135.0M in fiscal year 2025.

Is Energy Recovery Inc profitable?

Yes, Energy Recovery Inc (ERII) reported a net income of $23.0M in fiscal year 2025, with a net profit margin of 17.0%.

What is Energy Recovery Inc's EBITDA?

Energy Recovery Inc (ERII) had EBITDA of $27.6M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

What is Energy Recovery Inc's gross margin?

Energy Recovery Inc (ERII) had a gross margin of 65.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

What is Energy Recovery Inc's operating margin?

Energy Recovery Inc (ERII) had an operating margin of 17.7% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

What is Energy Recovery Inc's net profit margin?

Energy Recovery Inc (ERII) had a net profit margin of 17.0% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

What is Energy Recovery Inc's return on equity (ROE)?

Energy Recovery Inc (ERII) has a return on equity of 11.1% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Energy Recovery Inc's free cash flow?

Energy Recovery Inc (ERII) generated $17.4M in free cash flow during fiscal year 2025. This represents a -9.3% 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 Energy Recovery Inc's operating cash flow?

Energy Recovery Inc (ERII) generated $18.8M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Energy Recovery Inc's total assets?

Energy Recovery Inc (ERII) had $231.5M in total assets as of fiscal year 2025, including both current and long-term assets.

What are Energy Recovery Inc's capital expenditures?

Energy Recovery Inc (ERII) invested $1.3M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

How much does Energy Recovery Inc spend on research and development?

Energy Recovery Inc (ERII) invested $13.0M in research and development during fiscal year 2025.

Does Energy Recovery Inc buy back shares?

Yes, Energy Recovery Inc (ERII) spent $35.6M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

How many shares does Energy Recovery Inc have outstanding?

Energy Recovery Inc (ERII) had 53M shares outstanding as of fiscal year 2025.

What is Energy Recovery Inc's current ratio?

Energy Recovery Inc (ERII) had a current ratio of 10.44 as of fiscal year 2025, which is generally considered healthy.

What is Energy Recovery Inc's debt-to-equity ratio?

Energy Recovery Inc (ERII) had a debt-to-equity ratio of 0.12 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Energy Recovery Inc's return on assets (ROA)?

Energy Recovery Inc (ERII) had a return on assets of 9.9% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Energy Recovery Inc's Altman Z-Score?

Energy Recovery Inc (ERII) has an Altman Z-Score of 15.34, placing it in the Safe Zone (low 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 Energy Recovery Inc's Piotroski F-Score?

Energy Recovery Inc (ERII) 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 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Energy Recovery Inc's earnings high quality?

Energy Recovery Inc (ERII) has an earnings quality ratio of 0.82x, considered mixed 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.

How financially healthy is Energy Recovery Inc?

Energy Recovery Inc (ERII) scores 63 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.