What is FREDDIE MAC V/R PFD's earnings per share (EPS)?

FREDDIE MAC V/R PFD (FMCCI) reported diluted earnings per share of -$0.02 for fiscal year 2025. 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.

FREDDIE MAC V/R PFD (FMCCI) Financials

FMCCI

FY2025 annual

Revenue $23.3B -2.7% YoY

Net Income $10.7B -9.5% YoY

EPS (Diluted) -$0.02 YoY not available

Operating Cash Flow $19.4B +192.3% YoY

Source SEC Filings (10-K/10-Q) Latest period Q2 FY2026, ended Jun 30, 2026 Reported Jul 30, 2026 Currency USD FYE December

Newest figures come from the 10-Q for Q2 FY2026, filed Jul 30, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the FMCCI SEC filings page.

FREDDIE MAC V/R PFD (FMCCI) reported $23.3B in revenue for fiscal year 2025, down 2.7% 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).

Rhea AI FMCCI FY2025 2026-08-30

FMCCI’s dominant mechanic is an exceptionally asset-heavy, liability-funded balance sheet where accounting returns remain tiny relative to scale.

FY2025’s reported net margin was 46.1%, while ROA was only 0.3%; profit is large relative to revenue but small relative to the asset base. That gap makes balance-sheet scale, not sales margin, the central lens for understanding the business.

Debt-to-equity fell from 67.1x in FY2023 to 2.4x in FY2025, indicating a dramatic shift in the reported debt mix. Yet total liabilities were still 48.7x equity in FY2025, so the lower debt ratio does not describe a lightly obligated balance sheet.

Operating cash flow sat below net income in FY2023 and FY2024, weakening the link between reported earnings and cash generation. In FY2025, operating cash flow was $19.4B against $10.7B of net income, showing a sharp cash-conversion rebound without establishing a stable pattern.

Financial Health Signals

Financial health score not available

FREDDIE MAC V/R PFD 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

5/7

FREDDIE MAC V/R PFD passes 5 of 7 computable financial strength tests (2 of the nine could not be computed from available data). 3 of 4 profitability signals pass, all 2 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality Cash-Backed

1.81x

For every $1 of reported earnings, FREDDIE MAC V/R PFD generates $1.81 in operating cash flow ($19.4B OCF vs $10.7B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Key Financial Metrics

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Earnings & Revenue

Revenue

$6.0B

YoY+1.3%

FREDDIE MAC V/R PFD generated $6.0B in revenue in Q2 2026. This represents an increase of 1.3% from the same quarter a year earlier.

Net Income

$3.8B

YoY+60.8%

FREDDIE MAC V/R PFD reported $3.8B in net income in Q2 2026. This represents an increase of 60.8% from the same quarter a year earlier.

EPS (Diluted)

$0.00

YoY+100.0%

FREDDIE MAC V/R PFD earned $0.00 per diluted share (EPS) in Q2 2026. This represents an increase of 100.0% from the same quarter a year earlier.

EBITDA

Not reported for Q2 2026.

Cash & Balance Sheet

Cash & Debt

$4.3B

YoY+1.3%

QoQ-18.9%

FREDDIE MAC V/R PFD held $4.3B in cash against $163.7B in long-term debt as of Q2 2026.

Shares Outstanding

650M

YoY0.0%

QoQ0.0%

5Y CAGR0.0%

10Y CAGR0.0%

FREDDIE MAC V/R PFD had 650M shares outstanding in Q2 2026. That is unchanged from the same quarter a year earlier. It is unchanged from the prior quarter.

Free Cash Flow

Not reported for Q2 2026.

Dividends Per Share

Not reported for Q2 2026.

Margins & Returns

Net Margin

64.1%

YoY+23.7pp

FREDDIE MAC V/R PFD's net profit margin was 64.1% in Q2 2026, showing the share of revenue converted to profit. This is up 23.7 percentage points from the same quarter a year earlier.

Return on Equity

4.9%

YoY+1.3pp

FREDDIE MAC V/R PFD's ROE was 4.9% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is up 1.3 percentage points from the same quarter a year earlier.

Gross Margin

Not reported for Q2 2026.

Operating Margin

Not reported for Q2 2026.

Capital Allocation

None of these metrics is reported for Q2 2026.

FMCCI 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.

FMCCI 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	FY1410-K	FY1310-K	FY1210-K	FY1110-K
Revenue	$23.3B-2.7%	$23.9B+12.6%	$21.2B-0.2%	$21.3B-3.1%	$22.0B+31.8%	$16.7B+18.3%	$14.1B-9.6%	$15.6B-26.1%	$21.1B+41.5%	$14.9B+31.1%	$11.3B-19.8%	$14.2B-43.4%	$25.0B+84.7%	$13.5B+79.9%	$7.5B
SG&A Expenses	$2.9B+1.5%	$2.8B+1.7%	$2.8B+85.2%	$1.5B-43.1%	$2.7B+4.6%	$2.5B-1.1%	$2.6B+11.8%	$2.3B+8.9%	$2.1B+5.0%	$2.0B+4.0%	$1.9B+2.4%	$1.9B+4.2%	$1.8B+15.6%	$1.6B+3.7%	$1.5B
Interest Expense	$108.4B+10.5%	$98.1B+13.0%	$86.8B+32.6%	$65.5B+48.9%	$43.9B-11.3%	$49.6B-18.8%	$61.0B+5.2%	$58.0B+8.2%	$53.6B+5.6%	$50.8B-2.6%	$52.1B-5.0%	$54.9B-1.5%	$55.8B-16.1%	$66.5B-16.9%	$80.0B
Income Tax	$2.6B-9.9%	$2.9B+9.7%	$2.7B+16.9%	$2.3B-26.3%	$3.1B+62.4%	$1.9B+3.7%	$1.8B-18.0%	$2.2B-80.0%	$11.2B+193.1%	$3.8B+32.0%	$2.9B-12.5%	$3.3B+114.2%	-$23.3B-1416.3%	-$1.5B-284.3%	-$400.0M
Net Income	$10.7B-9.5%	$11.9B+12.5%	$10.5B+13.0%	$9.3B-23.0%	$12.1B+65.3%	$7.3B+1.6%	$7.2B-21.9%	$9.2B+64.2%	$5.6B-28.0%	$7.8B+22.6%	$6.4B-17.1%	$7.7B-84.2%	$48.7B+343.2%	$11.0B+308.5%	-$5.3B
EPS (Basic)	-$0.02	$0.00+100.0%	-$0.05-145.5%	$0.11-26.7%	$0.15+1400.0%	$0.01+105.6%	-$0.18	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-$3.63
EPS (Diluted)	-$0.02	$0.00+100.0%	-$0.05-145.5%	$0.11-26.7%	$0.15	$0.01+105.6%	-$0.18	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-$3.63
Diluted Shares (Avg)	3.23B0.0%	3.23B0.0%	3.23B0.0%	3.23B0.0%	3.23B	3.23B0.0%	3.23B	N/A	N/A	N/A	N/A	N/A	N/A	N/A	3.24B

Metric	Q2'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q	Q2'2410-Q
Revenue	$6.0B+1.3%	N/A	$5.7B-1.7%	$5.9B-1.2%	N/A	$6.3B+17.8%	$5.8B+2.6%	$6.0B+12.2%
SG&A Expenses	$676.0M-9.6%	N/A	$716.0M+0.4%	$748.0M+8.6%	N/A	$749.0M-53.1%	$713.0M+70.6%	$689.0M+70.1%
Interest Expense	$28.3B+5.7%	N/A	$27.5B+10.9%	$26.7B+10.8%	N/A	$25.6B+10.9%	$24.8B+12.5%	$24.1B+13.7%
Income Tax	$936.0M+59.2%	N/A	$675.0M-8.9%	$588.0M-15.4%	N/A	$796.0M+8.2%	$741.0M+7.1%	$695.0M-4.5%
Net Income	$3.8B+60.8%	N/A	$2.8B-10.7%	$2.4B-13.7%	N/A	$3.2B+10.6%	$3.1B+15.6%	$2.8B-6.1%
EPS (Basic)	$0.00+100.0%	$0.00-100.0%	$0.00+100.0%	-$0.01	N/A	$0.01+125.0%	-$0.02-100.0%	$0.00-100.0%
EPS (Diluted)	$0.00+100.0%	$0.00-100.0%	$0.00+100.0%	-$0.01	N/A	$0.01+125.0%	-$0.02-100.0%	$0.00-100.0%
Diluted Shares (Avg)	3.23B0.0%	N/A	3.23B0.0%	3.23B0.0%	N/A	N/A	3.23B0.0%	3.23B0.0%

Not reported in any period shown, so not listed: Cost of Revenue, Gross Profit, R&D Expenses, Operating Income, EBITDA.

FMCCI Balance Sheet

FMCCI 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	FY1410-K	FY1310-K	FY1210-K	FY1110-K
Total Assets	$3.5T+3.3%	$3.4T+3.2%	$3.3T+2.3%	$3.2T+6.0%	$3.0T+15.2%	$2.6T+19.8%	$2.2T+6.3%	$2.1T+0.6%	$2.0T+1.3%	$2.0T+1.9%	$2.0T+2.1%	$1.9T-1.0%	$2.0T-1.2%	$2.0T-7.3%	$2.1T
Cash & Equivalents	$5.3B-3.7%	$5.5B-8.1%	$6.0B-5.4%	$6.4B-37.3%	$10.2B-57.5%	$23.9B+360.4%	$5.2B-28.7%	$7.3B-25.9%	$9.8B-20.7%	$12.4B+121.1%	$5.6B-48.8%	$10.9B-3.1%	$11.3B+32.5%	$8.5B-70.1%	$28.4B
Short-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Accounts Receivable	N/A	N/A	N/A	N/A	N/A	N/A	$10.8B+340.5%	$2.4B-64.7%	$6.9B+36.2%	$5.1B+40.2%	$3.6B-7.0%	$3.9B-10.7%	$4.4B-56.7%	$10.1B+20.9%	$8.3B
Long-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Total Liabilities	$3.4T+3.0%	$3.3T+2.9%	$3.2T+2.0%	$3.2T+5.8%	$3.0T+14.8%	$2.6T+19.5%	$2.2T+6.1%	$2.1T+0.4%	$2.1T+1.6%	$2.0T+1.8%	$2.0T+2.1%	$1.9T-0.5%	$2.0T-1.4%	$2.0T-7.7%	$2.1T
Long-Term Debt	$169.3B+1.2%	$167.3B-94.8%	$3.2T+2.0%	$3.1T+5.3%	$3.0T+15.2%	$2.6T+25.1%	$2.1T+3.8%	$2.0T+1.6%	$2.0T	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	$70.4B+18.1%	$59.6B+24.8%	$47.7B+28.9%	$37.0B+32.1%	$28.0B+70.8%	$16.4B+79.9%	$9.1B+103.8%	$4.5B+1534.9%	-$312.0M-106.1%	$5.1B+72.6%	$2.9B+10.9%	$2.7B-79.3%	$12.8B+45.4%	$8.8B+6145.9%	-$146.0M
Retained Earnings	-$12.5B+46.1%	-$23.3B+33.8%	-$35.1B+23.1%	-$45.7B+17.0%	-$55.0B+18.0%	-$67.1B+9.6%	-$74.2B+5.2%	-$78.3B+6.0%	-$83.3B-6.8%	-$77.9B+3.5%	-$80.8B+1.1%	-$81.6B-17.1%	-$69.7B+1.5%	-$70.8B+5.0%	-$74.5B

Metric	Q2'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q	Q2'2410-Q
Total Assets	$3.5T+2.4%	$3.5T+3.3%	$3.5T+3.8%	$3.4T+3.9%	$3.4T+3.7%	$3.4T+3.2%	$3.3T+2.2%	$3.3T+1.7%
Cash & Equivalents	$4.3B+1.3%	$5.3B-3.7%	$4.6B-4.8%	$4.3B-22.9%	N/A	$5.5B-8.1%	$4.9B-9.3%	$5.5B+0.3%
Short-Term Investments	$0	$0	$0	$0	N/A	$0	$0	$0
Long-Term Investments	$0	$0	$0	$0	N/A	$0	$0	$0
Total Liabilities	$3.4T+2.0%	$3.4T+3.0%	$3.4T+3.5%	$3.4T+3.6%	$3.3T+3.4%	$3.3T+2.9%	$3.3T+1.8%	$3.3T+1.4%
Long-Term Debt	$163.7B	$169.3B+1.2%	N/A	N/A	N/A	$167.3B-94.8%	$3.3T+1.7%	$3.2T+1.3%
Total Equity	$77.8B+20.0%	$70.4B+18.1%	$67.6B+19.9%	$64.8B+21.8%	$62.4B+23.7%	$59.6B+24.8%	$56.4B+26.3%	$53.2B+26.9%
Retained Earnings	-$5.1B+71.6%	-$12.5B+46.1%	-$15.3B+42.2%	-$18.1B+38.9%	-$20.5B+36.7%	-$23.3B+33.8%	-$26.5B+30.4%	-$29.6B+27.3%

Not reported in any period shown, so not listed: Current Assets, Inventory, Accounts Receivable, Goodwill, Current Liabilities, Non-Current Liabilities.

FMCCI Cash Flow Statement

FMCCI 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	FY1410-K	FY1310-K	FY1210-K	FY1110-K
Operating Cash Flow	$19.4B+192.3%	$6.6B-13.0%	$7.6B-36.1%	$11.9B-27.1%	$16.4B+1703.0%	$907.0M-92.6%	$12.2B+1709.6%	$674.0M-84.0%	$4.2B-3.9%	$4.4B+570.6%	-$934.0M-110.5%	$8.9B-52.1%	$18.5B+118.9%	$8.5B-18.0%	$10.3B
Depreciation & Amortization	N/A	N/A	N/A	N/A	N/A	N/A	N/A	$5.3B-12.5%	$6.0B-14.8%	$7.1B+33.2%	$5.3B+51.3%	$3.5B-24.0%	$4.6B+0.1%	$4.6B+124.1%	$2.1B
Investing Cash Flow	$4.7B-50.7%	$9.6B-78.3%	$44.3B+288.3%	$11.4B-53.0%	$24.3B+129.1%	-$83.4B-273.1%	$48.2B-59.8%	$119.6B-17.2%	$144.6B-12.1%	$164.5B-8.0%	$178.9B	N/A	$391.3B-20.9%	$494.4B+32.3%	$373.7B
Financing Cash Flow	-$24.3B-45.3%	-$16.7B+67.9%	-$52.2B-92.6%	-$27.1B+50.1%	-$54.3B-153.7%	$101.1B+262.0%	-$62.4B+49.2%	-$122.9B+23.8%	-$161.2B+3.4%	-$166.8B+9.0%	-$183.3B	N/A	-$407.0B+22.1%	-$522.8B-33.2%	-$392.6B

Metric	Q2'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q	Q2'2410-Q
Operating Cash Flow	N/A	$2.6B+386.4%	$5.1B+37.1%	N/A	N/A	-$900.0M-147.8%	$3.7B+410.5%	$927.0M-41.0%
Investing Cash Flow	N/A	$4.7B+134.7%	-$881.0M-200.7%	N/A	N/A	-$13.6B-181.8%	$875.0M-96.1%	$13.4B+357.5%
Financing Cash Flow	N/A	-$6.6B-143.5%	-$3.8B+26.9%	N/A	N/A	$15.2B+185.1%	-$5.3B+77.4%	-$12.3B-153.7%

Not reported in any period shown, so not listed: Depreciation & Amortization, Stock-Based Compensation, Capital Expenditures, Free Cash Flow, Dividends Paid, Share Buybacks.

FMCCI 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.

FMCCI 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	FY1410-K	FY1310-K	FY1210-K	FY1110-K
Net Margin	46.1%-3.5pp	49.6%-0.1pp	49.6%+5.8pp	43.9%-11.3pp	55.2%+11.2pp	44.0%-7.3pp	51.2%-8.1pp	59.3%+32.6pp	26.7%-25.8pp	52.5%-3.7pp	56.2%+1.8pp	54.4%	194.8%	81.2%+151.2pp	-70.0%
Return on Equity	15.3%-4.7pp	19.9%-2.2pp	22.1%-3.1pp	25.2%-18.0pp	43.2%-1.4pp	44.6%-34.4pp	79.1%-127.2pp	206.3%	N/A	154.0%-62.9pp	216.9%-73.2pp	290.1%-89.1pp	379.2%+254.8pp	124.4%	N/A
Return on Assets	0.3%0.0pp	0.4%0.0pp	0.3%0.0pp	0.3%-0.1pp	0.4%+0.1pp	0.3%-0.1pp	0.3%-0.1pp	0.4%+0.2pp	0.3%-0.1pp	0.4%+0.1pp	0.3%-0.1pp	0.4%-2.1pp	2.5%+1.9pp	0.5%+0.8pp	-0.3%
Debt-to-Equity	2.41-0.4x	2.81-64.3x	67.10-17.7x	84.77-21.5x	106.31-51.3x	157.66-69.1x	226.78-218.6x	445.36	N/A	397.69-276.8x	674.47-58.4x	732.89+580.7x	152.18-72.2x	224.43	N/A
Asset Turnover	0.010.0x	0.010.0x	0.010.0x	0.010.0x	0.010.0x	0.010.0x	0.010.0x	0.010.0x	0.010.0x	0.010.0x	0.010.0x	0.010.0x	0.010.0x	0.010.0x	0.00

Metric	Q2'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q	Q2'2410-Q
Net Margin	64.1%+23.7pp	N/A	48.3%-4.9pp	40.4%-5.8pp	N/A	50.9%-3.3pp	53.2%+6.0pp	46.2%-9.0pp
Return on Equity	4.9%+1.3pp	N/A	4.1%-1.4pp	3.7%-1.5pp	N/A	5.4%-0.7pp	5.5%-0.5pp	5.2%-1.8pp
Return on Assets	0.1%0.0pp	N/A	0.1%0.0pp	0.1%0.0pp	N/A	0.1%0.0pp	0.1%0.0pp	0.1%0.0pp
Debt-to-Equity	2.11-49.9x	2.41-0.4x	50.30-7.4x	52.02-8.5x	53.63-9.8x	2.81-64.3x	57.66-13.9x	60.48-15.3x
Asset Turnover	0.000.0x	N/A	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, Current Ratio, FCF Margin.

Where FREDDIE MAC V/R PFD Ranks

Frequently Asked Questions

What is FREDDIE MAC V/R PFD's annual revenue?

FREDDIE MAC V/R PFD (FMCCI) reported $23.3B in total revenue for fiscal year 2025. This represents a -2.7% 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 FREDDIE MAC V/R PFD's revenue growing?

FREDDIE MAC V/R PFD (FMCCI) revenue declined by 2.7% year-over-year, from $23.9B to $23.3B in fiscal year 2025.

Is FREDDIE MAC V/R PFD profitable?

Yes, FREDDIE MAC V/R PFD (FMCCI) reported a net income of $10.7B in fiscal year 2025, with a net profit margin of 46.1%.

How much debt does FREDDIE MAC V/R PFD have?

As of fiscal year 2025, FREDDIE MAC V/R PFD (FMCCI) had $5.3B in cash and equivalents against $169.3B in long-term debt.

What is FREDDIE MAC V/R PFD's net profit margin?

FREDDIE MAC V/R PFD (FMCCI) had a net profit margin of 46.1% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

What is FREDDIE MAC V/R PFD's return on equity (ROE)?

FREDDIE MAC V/R PFD (FMCCI) has a return on equity of 15.3% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is FREDDIE MAC V/R PFD's operating cash flow?

FREDDIE MAC V/R PFD (FMCCI) generated $19.4B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are FREDDIE MAC V/R PFD's total assets?

FREDDIE MAC V/R PFD (FMCCI) had $3.5T in total assets as of fiscal year 2025, including both current and long-term assets.

How many shares does FREDDIE MAC V/R PFD have outstanding?

FREDDIE MAC V/R PFD (FMCCI) had 650M shares outstanding as of fiscal year 2025.

What is FREDDIE MAC V/R PFD's debt-to-equity ratio?

FREDDIE MAC V/R PFD (FMCCI) had a debt-to-equity ratio of 2.41 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is FREDDIE MAC V/R PFD's return on assets (ROA)?

FREDDIE MAC V/R PFD (FMCCI) had a return on assets of 0.3% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is FREDDIE MAC V/R PFD's Piotroski F-Score?

FREDDIE MAC V/R PFD (FMCCI) has a Piotroski F-Score of 5 out of 7 computable signals; 2 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 FREDDIE MAC V/R PFD's earnings high quality?

FREDDIE MAC V/R PFD (FMCCI) has an earnings quality ratio of 1.81x, 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.