What is Finch Therapeutics Group, Inc.'s earnings per share (EPS)?

Finch Therapeutics Group, Inc. (FNCH) reported diluted earnings per share of -$46.59 for fiscal year 2023. This represents a 35.4% 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.

Finch Therapeutics Group, Inc. (FNCH) Financials

FNCH

FY2023 annual

Revenue $107K -87.6% YoY

Net Income -$74.8M +34.8% YoY

EPS (Diluted) -$46.59 +35.4% YoY

Free Cash Flow -$31.5M +59.1% YoY

Source SEC Filings (10-K/10-Q) Latest period Q2 FY2024, ended Jun 30, 2024 Reported Aug 13, 2024 Currency USD FYE December

Newest figures come from the 10-Q for Q2 FY2024, filed Aug 13, 2024. Each column of the statement tables below links to the filing it was taken from.

Finch Therapeutics Group, Inc. (FNCH) reported $107K in revenue for fiscal year 2023, down 87.6% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 4 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 FNCH FY2023 2026-08-30

A development-stage business is shrinking its cost base faster than it is converting activity into revenue, keeping financing central.

From FY2022 to FY2023, revenue contracted sharply while operating cash use narrowed; that pairing points to a smaller operating program accompanying reduced activity, not demonstrated operating leverage. In FY2023, net loss was -$74.8M versus operating cash flow of -$31.5M, so accounting losses and cash usage diverged materially rather than moving in lockstep.

R&D investment was sharply reduced, falling from $52.9M in FY2022 to $7.2M in FY2023. SG&A was still $26.9M in FY2023, shifting the cost structure toward overhead while losses persisted.

FY2023 free cash flow matched operating cash flow at -$31.5M, while capital expenditures were $0; reinvestment was not the main cash drain that year. The company had no long-term debt and a 6.3x current ratio, but total assets had fallen to $55.4M from $162.9M, pairing short-term balance-sheet capacity with a much smaller financial base.

Financial Health Signals

Financial health score not available

Finch Therapeutics Group, 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.

Altman Z-Score Distress

-13.17

Finch Therapeutics Group, Inc. scores -13.17, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($11.7M) relative to total liabilities ($32.5M). 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.

Piotroski F-Score Partial

4/8

Finch Therapeutics Group, Inc. passes 4 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 1 of 4 profitability signals pass, all 3 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality No Cash Backing

N/A

Finch Therapeutics Group, Inc. reported a net loss of $74.8M while operations used $31.5M of cash. With neither figure positive, the ratio between the two carries no quality signal.

Key Financial Metrics

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Earnings & Revenue

Revenue

Finch Therapeutics Group, Inc. generated $0 in revenue in Q2 2024.

EBITDA

-$6.1M

YoY+38.3%

QoQ-17.7%

Finch Therapeutics Group, Inc.'s EBITDA was -$6.1M in Q2 2024, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 38.3% from the same quarter a year earlier. Against the prior quarter it is down 17.7%.

Net Income

-$4.8M

YoY+30.4%

QoQ-24.7%

Finch Therapeutics Group, Inc. reported -$4.8M in net income in Q2 2024. This represents an increase of 30.4% from the same quarter a year earlier. Against the prior quarter it is down 24.7%.

EPS (Diluted)

-$3.01

YoY+30.5%

QoQ-24.9%

Finch Therapeutics Group, Inc. earned -$3.01 per diluted share (EPS) in Q2 2024. This represents an increase of 30.5% from the same quarter a year earlier. Against the prior quarter it is down 24.9%.

Cash & Balance Sheet

Free Cash Flow

-$4.7M

YoY+48.4%

QoQ-8.3%

Finch Therapeutics Group, Inc. recorded an outflow of $4.7M in free cash flow in Q2 2024, representing a cash shortfall after capex. This represents an increase of 48.4% from the same quarter a year earlier. Against the prior quarter it is down 8.3%.

Cash & Debt

$16.0M

YoY-52.9%

QoQ-22.8%

Finch Therapeutics Group, Inc. held $16.0M in cash as of Q2 2024; long-term debt is not reported for that period.

Shares Outstanding

YoY+0.1%

QoQ0.0%

Finch Therapeutics Group, Inc. had 2M shares outstanding in Q2 2024. This represents an increase of 0.1% from the same quarter a year earlier. It is unchanged from the prior quarter.

Dividends Per Share

Not reported for Q2 2024.

Margins & Returns

Return on Equity

-34.0%

YoY-9.1pp

QoQ-13.6pp

Finch Therapeutics Group, Inc.'s ROE was -34.0% in Q2 2024, measuring profit generated per dollar of shareholder equity. This is down 9.1 percentage points from the same quarter a year earlier. Against the prior quarter it is down 13.6 percentage points.

Gross Margin

Not reported for Q2 2024.

Operating Margin

Not reported for Q2 2024.

Net Margin

Not reported for Q2 2024.

Capital Allocation

R&D Spending

YoY-100.0%

Finch Therapeutics Group, Inc. reported no research and development spending in Q2 2024. This represents a decrease of 100.0% from the same quarter a year earlier.

Capital Expenditures

Finch Therapeutics Group, Inc. reported no capital expenditure in Q2 2024.

Share Buybacks

Not reported for Q2 2024.

FNCH 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.

FNCH quarterly income statement

Metric	TTM	FY2310-K	FY2210-K	FY2110-K	FY2010-K
Revenue	N/A	$107K-87.6%	$861K-95.4%	$18.5M+140.1%	$7.7M
R&D Expenses	N/A	$7.2M-86.4%	$52.9M-7.7%	$57.3M+72.8%	$33.1M
SG&A Expenses	N/A	$26.9M-25.6%	$36.2M+70.4%	$21.2M+51.6%	$14.0M
Operating Income	N/A	-$83.9M+27.5%	-$115.6M-92.7%	-$60.0M-52.1%	-$39.4M
EBITDA	N/A	-$82.3M+25.2%	-$110.1M-90.8%	-$57.7M-49.3%	-$38.6M
Income Tax	N/A	-$3.5M	$0	$0	$0
Net Income	N/A	-$74.8M+34.8%	-$114.6M-97.1%	-$58.2M-47.8%	-$39.3M
EPS (Basic)	N/A	-$46.59+35.4%	-$72.12-4773.0%	-$1.48	N/A
EPS (Diluted)	-$8.82	-$46.59+35.4%	-$72.12	-$1.48	N/A
Diluted Shares (Avg)	N/A	2M+0.9%	2M	39M	N/A

Metric	Q2'2410-Q	Q1'2410-Q	Q4'2310-Q	Q3'2310-Q	Q2'2310-Q	Q1'2310-Q	Q4'2210-K	Q3'2210-Q
Revenue	$0	$0-100.0%	N/A	$0-100.0%	$0-100.0%	$107K-69.8%	$8K-99.0%	$138K-98.8%
R&D Expenses	$0-100.0%	$0-100.0%	N/A	$0-100.0%	$203K-98.5%	$7.0M-55.0%	$11.6M-22.0%	$11.9M-23.7%
SG&A Expenses	$6.1M-31.2%	$5.2M-46.3%	N/A	$3.7M-61.0%	$8.9M+8.7%	$9.6M+2.3%	$9.0M+78.5%	$9.6M+67.0%
Operating Income	-$6.1M+38.2%	-$5.2M+92.1%	N/A	-$3.8M+90.7%	-$9.9M+56.3%	-$65.8M-167.6%	-$27.8M-45.6%	-$40.6M-309.1%
EBITDA	-$6.1M+38.3%	-$5.2M+92.0%	N/A	-$3.7M+90.5%	-$9.8M+53.8%	-$64.4M-177.1%	-$26.3M-43.3%	-$39.2M-322.0%
Income Tax	$0	$0+100.0%	N/A	$0	$0	-$3.5M	$0	$0
Net Income	-$4.8M+30.4%	-$3.9M+93.8%	N/A	-$2.4M+94.0%	-$7.0M+69.4%	-$62.3M-153.8%	-$27.0M-41.7%	-$40.4M-305.5%
EPS (Basic)	-$3.01+30.5%	-$2.41+93.9%	-$1.89-237.5%	-$1.51+94.1%	-$4.33+69.7%	-$39.19-7436.5%	-$0.56-36.6%	-$25.38-11985.7%
EPS (Diluted)	-$3.01+30.5%	-$2.41	-$1.89	-$1.51	-$4.33	-$39.19	-$0.56-36.6%	-$25.38
Diluted Shares (Avg)	2M+0.1%	2M	N/A	2M	2M	2M	N/A	2M

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

FNCH Balance Sheet

FNCH quarterly balance sheet

Metric	FY2310-K	FY2210-K	FY2110-K	FY2010-K
Total Assets	$55.4M-66.0%	$162.9M-27.7%	$225.4M+36.3%	$165.3M
Current Assets	$25.8M-65.3%	$74.6M-47.7%	$142.6M+34.3%	$106.2M
Cash & Equivalents	$25.1M-64.6%	$71.0M-46.8%	$133.5M+33.9%	$99.7M
Short-Term Investments	$0	$0	$0	$0
Accounts Receivable	$0-100.0%	$144K-70.9%	$494K-52.2%	$1.0M
Long-Term Investments	$0	$0	$0	$0
Goodwill	N/A	$0-100.0%	$18.1M0.0%	$18.1M
Total Liabilities	$32.5M-51.7%	$67.2M+190.5%	$23.1M-91.1%	$261.1M
Current Liabilities	$4.1M-72.2%	$14.7M-0.7%	$14.8M+28.8%	$11.5M
Non-Current Liabilities	$28.4M-45.9%	$52.5M+528.8%	$8.4M-96.7%	$249.6M
Long-Term Debt	$0-100.0%	$14.7M	$0-100.0%	$1.8M
Total Equity	$22.9M-76.1%	$95.7M-52.7%	$202.2M+311.3%	-$95.7M
Retained Earnings	-$350.4M-27.1%	-$275.6M-71.2%	-$161.0M-56.6%	-$102.8M

Metric	Q2'2410-Q	Q1'2410-Q	Q4'2310-Q	Q3'2310-Q	Q2'2310-Q	Q1'2310-Q	Q4'2210-K	Q3'2210-Q
Total Assets	$45.6M-31.8%	$50.1M-36.6%	$55.4M-66.0%	$59.5M-68.3%	$66.9M-70.7%	$79.0M-61.4%	$162.9M-27.7%	$188.0M-19.3%
Current Assets	$17.3M-52.7%	$21.2M-51.2%	$25.8M-65.3%	$29.9M-67.0%	$36.5M-67.0%	$43.4M-64.6%	$74.6M-47.7%	$90.6M-42.0%
Cash & Equivalents	$16.0M-52.9%	$20.8M-50.2%	$25.1M-64.6%	$28.8M-66.3%	$34.1M-67.5%	$41.7M-61.0%	$71.0M-46.8%	$85.3M-42.8%
Short-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Accounts Receivable	N/A	N/A	$0-100.0%	$0	$0-100.0%	$107K-37.8%	$144K-70.9%	$0-100.0%
Long-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Goodwill	N/A	N/A	N/A	N/A	N/A	N/A	$0-100.0%	$0-100.0%
Total Liabilities	$31.4M-19.5%	$31.1M-32.6%	$32.5M-51.7%	$33.7M-49.8%	$39.0M-43.7%	$46.1M+85.5%	$67.2M+190.5%	$67.1M+409.2%
Current Liabilities	$4.5M-53.4%	$3.5M-73.5%	$4.1M-72.2%	$4.9M-64.7%	$9.6M-36.9%	$13.2M-21.3%	$14.7M-0.7%	$13.8M+56.0%
Non-Current Liabilities	$26.9M-8.5%	$27.6M-16.2%	$28.4M-45.9%	$28.8M-46.0%	$29.4M-45.6%	$32.9M+308.2%	$52.5M+528.8%	$53.3M+1131.7%
Long-Term Debt	N/A	N/A	$0-100.0%	$0-100.0%	$0-100.0%	$0	$14.7M	$14.6M
Total Equity	$14.2M-49.0%	$19.0M-44.9%	$22.9M-76.1%	$25.8M-78.6%	$27.9M-82.5%	$34.5M-80.8%	$95.7M-52.7%	$120.9M-45.0%
Retained Earnings	-$359.1M-4.1%	-$354.3M-4.3%	-$350.4M-27.1%	-$347.4M-39.7%	-$344.9M-65.6%	-$339.6M-83.0%	-$275.6M-71.2%	-$248.6M-75.2%

Not reported in any period shown, so not listed: Inventory.

FNCH Cash Flow Statement

FNCH quarterly cash flow statement

Metric	TTM	FY2310-K	FY2210-K	FY2110-K	FY2010-K
Operating Cash Flow	-$18.1M	-$31.5M+57.9%	-$74.9M-11.5%	-$67.1M-114.3%	-$31.3M
Depreciation & Amortization	N/A	$1.5M-72.4%	$5.5M+139.3%	$2.3M+191.3%	$790K
Stock-Based Compensation	N/A	$1.9M-75.4%	$7.8M+88.5%	$4.2M+34.3%	$3.1M
Capital Expenditures	-$14K	$0-100.0%	$2.2M-86.3%	$16.0M	N/A
Free Cash Flow	-$18.1M	-$31.5M+59.1%	-$77.0M+7.3%	-$83.1M	N/A
Investing Cash Flow	$71K	$1.3M+160.8%	-$2.2M+86.3%	-$15.9M-504.7%	-$2.6M
Financing Cash Flow	$0	-$16.2M-208.6%	$14.9M-87.5%	$119.1M+30.2%	$91.5M

Metric	Q2'2410-Q	Q1'2410-Q	Q4'2310-Q	Q3'2310-Q	Q2'2310-Q	Q1'2310-Q	Q4'2210-K	Q3'2210-Q
Operating Cash Flow	-$4.7M+48.4%	-$4.4M+67.4%	-$3.7M+74.0%	-$5.3M+72.4%	-$9.2M+42.2%	-$13.4M+47.8%	-$14.3M-3.5%	-$19.1M-33.1%
Depreciation & Amortization	$44K-22.8%	$43K-96.9%	$44K-96.9%	$52K-96.3%	$57K-95.8%	$1.4M+2.7%	$1.4M+107.7%	$1.4M+120.2%
Stock-Based Compensation	$15K-95.0%	$28K-97.6%	N/A	$335K-84.1%	$300K-83.6%	$1.2M-44.3%	N/A	$2.1M+38.7%
Capital Expenditures	$0	$0-100.0%	-$14K-72.5%	$0-100.0%	$0-100.0%	$14K-98.5%	$51K-97.5%	$328K-86.1%
Free Cash Flow	-$4.7M+48.4%	-$4.4M+67.4%	-$3.7M+74.0%	-$5.3M+72.9%	-$9.2M+45.3%	-$13.4M+49.6%	-$14.3M+9.3%	-$19.4M-16.2%
Investing Cash Flow	$0-100.0%	$0+100.0%	$51K+200.0%	$20K+106.1%	$1.3M+242.1%	-$14K+98.5%	-$51K+97.5%	-$328K+86.1%
Financing Cash Flow	$0-100.0%	$0+100.0%	$0-100.0%	$0-100.0%	$4K-100.0%	-$16.2M-323280.0%	$52K-25.7%	$41K-8.9%

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

FNCH 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.

FNCH quarterly financial ratios

Metric	FY2310-K	FY2210-K	FY2110-K	FY2010-K
Operating Margin	-78374.8%	-13425.4%	-323.7%	-510.9%
Net Margin	-69863.6%	-13315.5%	-313.8%	-509.7%
Return on Equity	-326.6%-206.9pp	-119.8%-91.0pp	-28.8%	N/A
Return on Assets	-135.0%-64.6pp	-70.4%-44.5pp	-25.8%-2.0pp	-23.8%
Current Ratio	6.33+1.3x	5.08-4.6x	9.64+0.4x	9.24
Debt-to-Equity	0.00-0.2x	0.15+0.2x	0.00	N/A
Asset Turnover	0.000.0x	0.01-0.1x	0.080.0x	0.05
FCF Margin	-29443.9%	-8946.9%	-448.5%	N/A

Metric	Q2'2410-Q	Q1'2410-Q	Q4'2310-Q	Q3'2310-Q	Q2'2310-Q	Q1'2310-Q	Q4'2210-K	Q3'2210-Q
Operating Margin	N/A	N/A	N/A	N/A	N/A	-61479.4%	-346900.0%	-29443.5%
Net Margin	N/A	N/A	N/A	N/A	N/A	-58268.2%	-337600.0%	-29254.3%
Return on Equity	-34.0%-9.1pp	-20.4%+160.1pp	N/A	-9.4%+24.0pp	-24.9%-10.7pp	-180.5%-166.8pp	-28.2%-18.8pp	-33.4%-28.9pp
Return on Assets	-10.6%-0.2pp	-7.7%+71.1pp	N/A	-4.1%+17.4pp	-10.4%-0.5pp	-78.9%-66.9pp	-16.6%-8.1pp	-21.5%-17.2pp
Current Ratio	3.87+0.1x	6.05+2.8x	6.33+1.3x	6.13-0.4x	3.81-3.5x	3.29-4.0x	5.08-4.6x	6.56-11.1x
Debt-to-Equity	2.21+2.2x	1.63+1.6x	0.00-0.2x	0.00-0.1x	0.00-0.1x	0.00-0.1x	0.15+0.2x	0.12+0.1x
Asset Turnover	0.000.0x	0.000.0x	N/A	0.000.0x	0.000.0x	0.000.0x	0.000.0x	0.000.0x
FCF Margin	N/A	N/A	N/A	N/A	N/A	-12518.7%	-179037.5%	-14073.9%

Not reported in any period shown, so not listed: Gross Margin.

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.

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
Finch Therapeutics Group, Inc. FNCH	FY2023	$107K	-$74.8M	N/A	$11.7M	—
Oncotelic Therapeutics Inc OTLC	FY2025	N/A	$249.3M	N/A	$14.6M	—
ACCUSTEM SCIENCES INC ACUT	FY2025	N/A	-$1.8M	N/A	$2.9M	—
Cell Source Inc CLCS	FY2024	N/A	N/A	N/A	$34.0M	—

Where Finch Therapeutics Group, Inc. Ranks

Frequently Asked Questions

What is Finch Therapeutics Group, Inc.'s annual revenue?

Finch Therapeutics Group, Inc. (FNCH) reported $107K in total revenue for fiscal year 2023. This represents a -87.6% 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 Finch Therapeutics Group, Inc.'s revenue growing?

Finch Therapeutics Group, Inc. (FNCH) revenue declined by 87.6% year-over-year, from $861K to $107K in fiscal year 2023.

Is Finch Therapeutics Group, Inc. profitable?

No, Finch Therapeutics Group, Inc. (FNCH) reported a net income of -$74.8M in fiscal year 2023.

What is Finch Therapeutics Group, Inc.'s EBITDA?

Finch Therapeutics Group, Inc. (FNCH) had EBITDA of -$82.3M in fiscal year 2023, measuring earnings before interest, taxes, depreciation, and amortization.

How much debt does Finch Therapeutics Group, Inc. have?

As of fiscal year 2023, Finch Therapeutics Group, Inc. (FNCH) had $25.1M in cash and equivalents against $0 in long-term debt.

What is Finch Therapeutics Group, Inc.'s return on equity (ROE)?

Finch Therapeutics Group, Inc. (FNCH) has a return on equity of -326.6% for fiscal year 2023, measuring how efficiently the company generates profit from shareholder equity.

What is Finch Therapeutics Group, Inc.'s free cash flow?

Finch Therapeutics Group, Inc. (FNCH) recorded an outflow of $31.5M in free cash flow during fiscal year 2023. This represents a 59.1% 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 Finch Therapeutics Group, Inc.'s operating cash flow?

Finch Therapeutics Group, Inc. (FNCH) recorded an outflow of $31.5M in operating cash flow during fiscal year 2023, representing cash used by core business activities.

What are Finch Therapeutics Group, Inc.'s total assets?

Finch Therapeutics Group, Inc. (FNCH) had $55.4M in total assets as of fiscal year 2023, including both current and long-term assets.

What are Finch Therapeutics Group, Inc.'s capital expenditures?

Finch Therapeutics Group, Inc. (FNCH) reported no capital expenditure during fiscal year 2023.

How much does Finch Therapeutics Group, Inc. spend on research and development?

Finch Therapeutics Group, Inc. (FNCH) invested $7.2M in research and development during fiscal year 2023.

How many shares does Finch Therapeutics Group, Inc. have outstanding?

Finch Therapeutics Group, Inc. (FNCH) had 2M shares outstanding as of fiscal year 2023.

What is Finch Therapeutics Group, Inc.'s current ratio?

Finch Therapeutics Group, Inc. (FNCH) had a current ratio of 6.33 as of fiscal year 2023, which is generally considered healthy.

What is Finch Therapeutics Group, Inc.'s debt-to-equity ratio?

Finch Therapeutics Group, Inc. (FNCH) had a debt-to-equity ratio of 0.00 as of fiscal year 2023, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Finch Therapeutics Group, Inc.'s return on assets (ROA)?

Finch Therapeutics Group, Inc. (FNCH) had a return on assets of -135.0% for fiscal year 2023, measuring how efficiently the company uses its assets to generate profit.

How does Finch Therapeutics Group, Inc.'s liquidity compare with its operating cash outflow?

At the end of fiscal year 2023, Finch Therapeutics Group, Inc. (FNCH) held $25.1M in cash, cash equivalents and investments, and reported an operating cash outflow of $31.5M over that year. Dividing the one by the other, the reported balance equals about 10 months of the outflow reported that year. This is arithmetic over figures already filed, not a projection: it assumes nothing about future spending, financing or operations.

What is Finch Therapeutics Group, Inc.'s Altman Z-Score?

Finch Therapeutics Group, Inc. (FNCH) has an Altman Z-Score of -13.17, 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 Finch Therapeutics Group, Inc.'s Piotroski F-Score?

Finch Therapeutics Group, Inc. (FNCH) 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 Finch Therapeutics Group, Inc.'s earnings high quality?

Finch Therapeutics Group, Inc. (FNCH) reported a net loss of $74.8M while operations used $31.5M 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.