What is KKR Real Estate Finance Trust Inc.'s earnings per share (EPS)?

KKR Real Estate Finance Trust Inc. (KREF) reported diluted earnings per share of -$1.05 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.

KKR Real Estate Finance Trust Inc. (KREF) Financials

KREF

Trailing 12 months to June 30, 2026

Revenue Not reported for the trailing 12 months

Net Income -$185.0M -751.6% YoY

EPS (Diluted) -$3.28 -397.0% YoY

Operating Cash Flow $63.0M -39.7% YoY

Market Cap $356.2M as of Oct 6, 2026

Price / Sales n/m no revenue reported

Price / Earnings n/m net loss, so no earnings multiple, trailing 12 months to June 30, 2026

Price / Book 0.4x on $931.8M equity, Q2 FY2026

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 6, 2026; every other figure is from the SEC filings on this page. Not financial advice.

Source SEC Filings (10-K/10-Q) Latest period Q2 FY2026, ended Jun 30, 2026 Reported Jul 21, 2026 Currency USD FYE December

Newest figures come from the 10-Q for Q2 FY2026, filed Jul 21, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the KREF SEC filings page.

This page shows KKR Real Estate Finance Trust Inc. (KREF) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 11 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 KREF FY2025 2026-10-03

The trust manages a roughly $6.5B asset base, but earnings reversals and creditor funding dominate its reported profile.

Cash generation and earnings weakened together: FY2025 reported operating cash flow of $72.3M remained positive alongside a net loss of $47.1M, but the cash result was substantially smaller than in stronger profit periods. That divergence means the reported loss does not fully describe cash movement, while the decline in cash generation still signals less capacity from the trust’s underlying financial activity.

Assets rose modestly from FY2024 to FY2025, reaching $6.5B, but that expansion did not translate into better earnings. Liabilities of $5.2B outweighed equity of $1.2B, leaving the balance sheet chiefly supported by creditor capital rather than owners’ capital.

The trust reported profits through FY2022, a loss in FY2023, a profit in FY2024, and another loss in FY2025, showing repeated earnings reversals rather than a one-direction trend. Reported operating cash flow stayed positive but fell from $155.7M in FY2023 to $72.3M in FY2025, so cash generation did not prevent the latest loss.

Financial Health Signals

Financial health score not available

KKR Real Estate Finance Trust 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.

Piotroski F-Score Partial

3/5

KKR Real Estate Finance Trust Inc. passes 3 of 5 computable financial strength tests (4 of the nine could not be computed from available data). 2 of 4 profitability signals pass, all 1 leverage/liquidity signals pass.

Earnings Quality Mixed

N/A

KKR Real Estate Finance Trust Inc. reported a net loss of $47.1M while generating $72.3M 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.

Key Financial Metrics

Export CSV

Earnings & Revenue

Net Income

-$116.4M

YoY-291.4%

QoQ-107.3%

KKR Real Estate Finance Trust Inc. reported -$116.4M in net income in Q2 2026. This represents a decrease of 291.4% from the same quarter a year earlier. Against the prior quarter it is down 107.3%.

EPS (Diluted)

-$1.95

YoY-267.9%

QoQ-103.1%

KKR Real Estate Finance Trust Inc. earned -$1.95 per diluted share (EPS) in Q2 2026. This represents a decrease of 267.9% from the same quarter a year earlier. Against the prior quarter it is down 103.1%.

Revenue

Not reported for Q2 2026.

EBITDA

Not reported for Q2 2026.

Cash & Balance Sheet

Cash & Debt

$83.1M

YoY-22.9%

QoQ-38.7%

5Y CAGR-7.0%

KKR Real Estate Finance Trust Inc. held $83.1M in cash as of Q2 2026; long-term debt is not reported for that period.

Dividends Per Share

$0.10

YoY-60.0%

QoQ-60.0%

5Y CAGR-25.3%

KKR Real Estate Finance Trust Inc. paid $0.10 per share in dividends in Q2 2026. This represents a decrease of 60.0% from the same quarter a year earlier. Against the prior quarter it is down 60.0%.

Shares Outstanding

59M

YoY-10.8%

QoQ-8.9%

5Y CAGR+1.0%

KKR Real Estate Finance Trust Inc. had 59M shares outstanding in Q2 2026. This represents a decrease of 10.8% from the same quarter a year earlier. Against the prior quarter it is down 8.9%.

Free Cash Flow

Not reported for Q2 2026.

Margins & Returns

Return on Equity

-12.5%

YoY-10.1pp

QoQ-7.4pp

5Y change-15.0pp

10Y change-14.8pp

KKR Real Estate Finance Trust Inc.'s ROE was -12.5% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is down 10.1 percentage points from the same quarter a year earlier. Against the prior quarter it is down 7.4 percentage points.

Gross Margin

Not reported for Q2 2026.

Operating Margin

Not reported for Q2 2026.

Net Margin

Not reported for Q2 2026.

Capital Allocation

Share Buybacks

$38.1M

YoY+90.0%

QoQ+4902.2%

KKR Real Estate Finance Trust Inc. spent $38.1M on share buybacks in Q2 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 90.0% from the same quarter a year earlier. Against the prior quarter it is up 4902.2%.

R&D Spending

Not reported for Q2 2026.

Capital Expenditures

Not reported for Q2 2026.

KREF 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.

KREF quarterly income statement

Metric	TTM	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K
SG&A Expenses	N/A	$18.1M-1.9%	$18.4M-2.0%	$18.8M+6.7%	$17.6M+23.8%	$14.2M0.0%	$14.2M+35.3%	$10.5M+34.7%	$7.8M+58.3%	$4.9M+117.4%	$2.3M+13.8%	$2.0M
Interest Expense	$295.3M	$323.0M-21.8%	$412.9M-10.0%	$458.8M+94.3%	$236.1M+106.3%	$114.4M-10.1%	$127.3M-19.9%	$158.9M+86.9%	$85.0M+300.6%	$21.2M+185.6%	$7.4M+1241.5%	$554K
Income Tax	-$156K	-$156K-162.9%	$248K-65.1%	$710K+1124.1%	$58K-91.5%	$684K+66.0%	$412K-28.8%	$579K+927.1%	-$70K-106.4%	$1.1M+211.3%	$354K-9.9%	$393K
Net Income	-$185.0M	-$47.1M-232.2%	$35.6M+215.4%	-$30.9M-181.0%	$38.1M-72.2%	$137.2M+152.2%	$54.4M-39.5%	$90.0M+0.2%	$89.7M+51.9%	$59.1M+89.6%	$31.2M+85.9%	$16.8M
EPS (Basic)	N/A	-$1.05-652.6%	$0.19+124.4%	-$0.78-439.1%	$0.23-89.6%	$2.22+131.3%	$0.96-39.2%	$1.580.0%	$1.58+21.5%	$1.30-19.3%	$1.61-17.4%	$1.95
EPS (Diluted)	-$3.28	-$1.05	$0.19	-$0.78	$0.23	$2.21+130.2%	$0.96-38.9%	$1.57-0.6%	$1.58+21.5%	$1.30	$1.61	$1.95
Diluted Shares (Avg)	N/A	67M	69M	69M	68M	57M+1.3%	56M-2.6%	58M+4.3%	55M+21.7%	45M	19M	9M

Metric	Q2'2610-Q	Q1'2610-Q	Q4'2510-K	Q3'2510-K	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-K
SG&A Expenses	$4.7M-0.6%	$4.6M-5.1%	N/A	$4.7M+1.7%	$4.7M-2.4%	$4.8M-3.2%	N/A	$4.7M-2.5%
Interest Expense	$67.3M-18.0%	$69.7M-15.6%	$75.5M-14.6%	$82.7M-19.8%	$82.1M-24.6%	$82.6M-26.5%	$88.5M-25.4%	$103.1M-13.0%
Income Tax	$0	$0	-$156K-446.7%	$0-100.0%	$0-100.0%	$0-100.0%	$45K-77.4%	$91K-44.8%
Net Income	-$116.4M-291.4%	-$56.1M-1054.9%	-$26.2M-229.6%	$13.8M+286.5%	-$29.7M-215.1%	-$4.9M-56.4%	$20.3M+257.2%	-$7.4M-127.2%
EPS (Basic)	-$1.95-267.9%	-$0.96-540.0%	-$0.49-333.3%	$0.12+163.2%	-$0.53-282.8%	-$0.15-15.4%	$0.21+177.8%	-$0.19-161.3%
EPS (Diluted)	-$1.95-267.9%	-$0.96	-$0.49	$0.12	-$0.53	-$0.15-15.4%	$0.21	-$0.19
Diluted Shares (Avg)	62M-7.0%	65M	65M	66M	67M	69M-0.9%	69M	69M

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

KREF Balance Sheet

KREF 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
Total Assets	$6.5B+1.8%	$6.4B-15.9%	$7.5B-3.3%	$7.8B+16.4%	$6.7B+35.0%	$5.0B-1.8%	$5.1B-3.3%	$5.2B-29.3%	$7.4B+18.0%	$6.3B	N/A
Cash & Equivalents	$84.6M-19.4%	$104.9M-22.8%	$135.9M-43.3%	$239.8M-11.7%	$271.5M+145.0%	$110.8M+63.9%	$67.6M-21.9%	$86.5M-16.1%	$103.1M+7.2%	$96.2M+259.1%	$26.8M
Short-Term Investments	$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	N/A	N/A	N/A	$542K	N/A
Long-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Total Liabilities	$5.2B+5.8%	$5.0B-19.4%	$6.1B-1.4%	$6.2B+16.6%	$5.3B+36.3%	$3.9B-0.3%	$3.9B-4.0%	$4.1B-35.3%	$6.3B+10.0%	$5.8B	N/A
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	$6.2B+8.2%	$5.8B	N/A
Total Equity	$1.2B-12.8%	$1.3B-4.3%	$1.4B-10.6%	$1.6B+15.4%	$1.4B+30.5%	$1.0B-7.0%	$1.1B-0.9%	$1.1B+6.9%	$1.1B+112.8%	$497.7M+73.8%	$286.4M
Retained Earnings	-$506.1M-36.6%	-$370.5M-17.8%	-$314.4M-122.2%	-$141.5M-270.3%	-$38.2M+41.8%	-$65.7M-664.5%	-$8.6M-3719.6%	-$225K-103.6%	$6.3M-64.9%	$17.9M	N/A

Metric	Q2'2610-Q	Q1'2610-Q	Q4'2510-K	Q3'2510-K	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-K
Total Assets	$6.6B-2.9%	$7.0B+6.0%	$6.5B+1.8%	$6.5B-4.3%	$6.8B-4.4%	$6.6B-9.7%	$6.4B-15.9%	$6.8B-11.2%
Cash & Equivalents	$83.1M-22.9%	$135.4M+27.3%	$84.6M-19.4%	$204.1M+87.6%	$107.7M+0.5%	$106.4M-0.1%	$104.9M-22.8%	$108.8M+0.7%
Short-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Long-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Total Liabilities	$5.6B+2.0%	$5.8B+11.7%	$5.2B+5.8%	$5.2B-3.0%	$5.5B-2.9%	$5.2B-11.7%	$5.0B-19.4%	$5.4B-13.1%
Total Equity	$931.8M-24.9%	$1.1B-16.4%	$1.2B-12.8%	$1.2B-9.4%	$1.2B-10.5%	$1.3B-5.2%	$1.3B-4.3%	$1.4B-6.6%
Retained Earnings	-$711.7M-58.2%	-$584.1M-46.8%	-$506.1M-36.6%	-$458.0M-24.5%	-$449.8M-33.3%	-$398.0M-16.9%	-$370.5M-17.8%	-$367.9M-38.4%

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

KREF Cash Flow Statement

KREF quarterly cash flow statement

Metric	TTM	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K
Operating Cash Flow	$63.0M	$72.3M-45.5%	$132.6M-14.9%	$155.7M+10.3%	$141.1M+13.1%	$124.8M+8.5%	$115.1M+25.5%	$91.7M+19.4%	$76.8M+42.8%	$53.8M+111.8%	$25.4M+120.1%	$11.5M
Depreciation & Amortization	N/A	$2.6M+164.9%	$983K	$0	$0	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Stock-Based Compensation	N/A	$7.9M-4.0%	$8.3M+2.3%	$8.1M+3.1%	$7.8M+5.5%	$7.4M+30.8%	$5.7M+38.7%	$4.1M+107.3%	$2.0M+2935.4%	$65K	$0	$0
Investing Cash Flow	$667.5M	$264.3M-76.3%	$1.1B+8176.4%	$13.5M+101.1%	-$1.2B+23.6%	-$1.5B-1837.0%	$88.7M+109.6%	-$926.3M+53.6%	-$2.0B-84.3%	-$1.1B-137.4%	-$456.4M-25.3%	-$364.3M
Financing Cash Flow	-$756.1M	-$355.8M+72.4%	-$1.3B-375.3%	-$271.5M-126.8%	$1.0B-35.9%	$1.6B+1083.4%	-$160.6M-119.7%	$815.7M-57.1%	$1.9B+83.5%	$1.0B+107.2%	$500.6M+31.9%	$379.5M
Dividends Paid	$64.9M	$66.9M-18.3%	$81.8M-31.2%	$118.9M+3.0%	$115.4M+20.6%	$95.7M-0.8%	$96.5M-2.5%	$99.0M+11.4%	$88.8M+75.7%	$50.6M+130.9%	$21.9M+190.4%	$7.5M
Share Buybacks	$52.4M	$43.4M+332.9%	$10.0M	$0-100.0%	$35.8M	$0-100.0%	$25.1M+510.4%	$4.1M-86.9%	$31.3M+5893.7%	$523K	$0	$0

Metric	Q2'2610-Q	Q1'2610-Q	Q4'2510-K	Q3'2510-K	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-K
Operating Cash Flow	$14.6M-30.8%	$13.1M-17.4%	$16.7M-8.7%	$18.5M-62.3%	$21.1M-31.1%	$15.9M-53.9%	$18.3M-50.3%	$49.1M+17.6%
Depreciation & Amortization	$1.0M+98.6%	$979K+99.8%	$893K+80.4%	$747K+47.9%	$508K+2888.2%	$490K	$495K	$505K
Stock-Based Compensation	N/A	$1.8M-15.0%	N/A	N/A	N/A	$2.1M-7.4%	N/A	N/A
Investing Cash Flow	$170.0M-28.2%	$249.5M+213.2%	-$135.5M-133.2%	$383.6M+57.3%	$236.7M+3.8%	-$220.5M-193.1%	$407.6M+433.0%	$243.9M+299.3%
Financing Cash Flow	-$237.6M+6.9%	-$212.6M-203.5%	-$1.1M+99.8%	-$304.9M-3.5%	-$255.2M+3.6%	$205.3M+168.3%	-$430.5M-397.0%	-$294.5M-1324.4%
Dividends Paid	$16.1M-5.2%	$16.1M-6.3%	$16.3M-5.9%	$16.4M-5.3%	$17.0M-2.1%	$17.2M-42.4%	$17.3M-41.7%	$17.3M-41.7%
Share Buybacks	$38.1M+90.0%	$762K-92.2%	$9.3M-7.5%	$4.2M	$20.1M	$9.8M	$10.0M	$0

Not reported in any period shown, so not listed: Capital Expenditures, Free Cash Flow.

KREF 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.

KREF 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
Return on Equity	-4.0%-6.7pp	2.6%+4.9pp	-2.2%-4.6pp	2.4%-7.7pp	10.1%+4.9pp	5.2%-2.8pp	8.0%+0.1pp	7.9%+2.3pp	5.6%-0.7pp	6.3%+0.4pp	5.9%
Return on Assets	-0.7%-1.3pp	0.6%+1.0pp	-0.4%-0.9pp	0.5%-1.6pp	2.1%+1.0pp	1.1%-0.7pp	1.8%+0.1pp	1.7%+0.9pp	0.8%+0.3pp	0.5%	N/A
Debt-to-Equity	4.47+0.8x	3.68-0.7x	4.37+0.4x	3.960.0x	3.92+0.2x	3.76+0.3x	3.51-0.1x	3.62-2.3x	5.87-5.7x	11.56	N/A

Metric	Q2'2610-Q	Q1'2610-Q	Q4'2510-K	Q3'2510-K	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-K
Return on Equity	-12.5%-10.1pp	-5.1%-4.8pp	-2.2%-3.8pp	1.1%+1.7pp	-2.4%-4.3pp	-0.4%-0.1pp	1.5%+2.4pp	-0.5%-2.4pp
Return on Assets	-1.8%-1.3pp	-0.8%-0.7pp	-0.4%-0.7pp	0.2%+0.3pp	-0.4%-0.8pp	-0.1%0.0pp	0.3%+0.5pp	-0.1%-0.5pp
Debt-to-Equity	5.98+1.6x	5.29+1.3x	4.47+0.8x	4.23+0.3x	4.40+0.3x	3.96-0.3x	3.68-0.7x	3.95-0.3x

Not reported in any period shown, so not listed: Gross Margin, Operating Margin, Net Margin, Current Ratio, Asset Turnover, 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
KKR Real Estate Finance Trust Inc. KREF	FY2025	N/A	-$47.1M	N/A	$356.2M	—
New York Mortgage Trust, Inc. NYMT	FY2025	$601.9M	$149.0M	24.8%	$652.1M	59/100
TPG RE Finance Trust, Inc. TRTX	FY2025	$146.1M	$60.3M	41.3%	$471.4M	18/100
Ready Capital Corporation RC	FY2025	$101.7M	-$221.1M	N/A	$186.7M	2/100
BrightSpire Capital, Inc. BRSP	FY2025	$330.6M	-$31.1M	-9.4%	$482.1M	28/100
Invesco Mortgage Capital Inc. IVR	FY2025	$295.3M	$101.3M	34.3%	$622.4M	0/100

Where KKR Real Estate Finance Trust Inc. Ranks

Frequently Asked Questions

Is KKR Real Estate Finance Trust Inc. profitable?

No, KKR Real Estate Finance Trust Inc. (KREF) reported a net income of -$47.1M in fiscal year 2025.

Does KKR Real Estate Finance Trust Inc. pay dividends?

Yes, KKR Real Estate Finance Trust Inc. (KREF) paid $1.00 per share in dividends during fiscal year 2025.

What is KKR Real Estate Finance Trust Inc.'s return on equity (ROE)?

KKR Real Estate Finance Trust Inc. (KREF) has a return on equity of -4.0% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is KKR Real Estate Finance Trust Inc.'s operating cash flow?

KKR Real Estate Finance Trust Inc. (KREF) generated $72.3M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are KKR Real Estate Finance Trust Inc.'s total assets?

KKR Real Estate Finance Trust Inc. (KREF) had $6.5B in total assets as of fiscal year 2025, including both current and long-term assets.

Does KKR Real Estate Finance Trust Inc. buy back shares?

Yes, KKR Real Estate Finance Trust Inc. (KREF) spent $43.4M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

How many shares does KKR Real Estate Finance Trust Inc. have outstanding?

KKR Real Estate Finance Trust Inc. (KREF) had 64M shares outstanding as of fiscal year 2025.

What is KKR Real Estate Finance Trust Inc.'s debt-to-equity ratio?

KKR Real Estate Finance Trust Inc. (KREF) had a debt-to-equity ratio of 4.47 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is KKR Real Estate Finance Trust Inc.'s return on assets (ROA)?

KKR Real Estate Finance Trust Inc. (KREF) had a return on assets of -0.7% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is KKR Real Estate Finance Trust Inc.'s P/E ratio?

KKR Real Estate Finance Trust Inc. (KREF) has no price-to-earnings ratio at the moment: net loss, so no earnings multiple (trailing 12 months to June 30, 2026). The market capitalization is $356.2M as of Oct 6, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

What is KKR Real Estate Finance Trust Inc.'s price-to-sales ratio?

KKR Real Estate Finance Trust Inc. (KREF) has no price-to-sales ratio at the moment: no revenue reported. The market capitalization is $356.2M as of Oct 6, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

What is KKR Real Estate Finance Trust Inc.'s Piotroski F-Score?

KKR Real Estate Finance Trust Inc. (KREF) has a Piotroski F-Score of 3 out of 5 computable signals; 4 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 KKR Real Estate Finance Trust Inc.'s earnings high quality?

KKR Real Estate Finance Trust Inc. (KREF) reported a net loss of $47.1M while generating $72.3M 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.