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

Leap Therapeutics, Inc. (LPTX) reported diluted earnings per share of $0.07 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.

Leap Therapeutics, Inc. (LPTX) Financials

LPTX

FY2025 annual

Revenue Not reported for FY2025

Net Income $5.0M +107.4% YoY

EPS (Diluted) $0.07 YoY not available

Operating Cash Flow -$43.9M +27.2% YoY

Source SEC Filings (10-K/10-Q) Latest period Q1 FY2026, ended Mar 31, 2026 Reported May 14, 2026 Currency USD FYE December

Newest figures come from the 10-Q for Q1 FY2026, filed May 14, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the LPTX SEC filings page.

This page shows Leap Therapeutics, Inc. (LPTX) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 10 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 LPTX FY2025 2026-10-03

The business remains development-led: FY2021 R&D dwarfed reported revenue, while later operations continued consuming cash funded by financing inflows.

In FY2025, reported net income of $5M coexisted with a $41.1M operating loss and $43.9M operating cash outflow; accounting profit did not reflect cash-generating operations. The mismatch indicates that the reported profit came from factors outside ordinary operating performance.

R&D was $32.2M against $1.5M of revenue in FY2021, then remained $25.7M in FY2025 despite lower operating losses; this is a development-stage cost structure, not a scaled sales model. R&D also remained the largest disclosed operating expense in FY2025, showing where resources are concentrated.

Total assets rose from $49.1M in FY2024 to $163.2M in FY2025, while financing provided $107.6M. With operating cash flow still negative and debt-to-equity at just 0.1x, the balance-sheet expansion appears capital-funded rather than debt-funded; reported liquidity equaled 3.8 months of the latest annual operating outflow.

Financial Health Signals

Financial health score not available

Leap Therapeutics, 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

3/6

Leap Therapeutics, Inc. passes 3 of 6 computable financial strength tests (3 of the nine could not be computed from available data). 2 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass.

Earnings Quality No Cash Backing

$8.78used

For every $1 of reported earnings, Leap Therapeutics, Inc. used $8.78 of operating cash (-$43.9M OCF vs $5.0M net income). Earnings that no cash stands behind rest on accounting accruals, which cannot be repeated indefinitely.

Interest Coverage At Risk

N/A

Leap Therapeutics, Inc. reported an operating loss of $41.1M against $24K 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

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Earnings & Revenue

Net Income

-$77.2M

YoY-399.9%

Leap Therapeutics, Inc. reported -$77.2M in net income in Q1 2026. This represents a decrease of 399.9% from the same quarter a year earlier.

EPS (Diluted)

-$0.46

Leap Therapeutics, Inc. earned -$0.46 per diluted share (EPS) in Q1 2026.

Revenue

Not reported for Q1 2026.

EBITDA

Not reported for Q1 2026.

Cash & Balance Sheet

Cash & Debt

$6.7M

YoY-79.6%

QoQ-52.3%

5Y CAGR-31.2%

Leap Therapeutics, Inc. held $6.7M in cash as of Q1 2026; long-term debt is not reported for that period.

Shares Outstanding

90M

QoQ+7.3%

5Y CAGR+8.6%

Leap Therapeutics, Inc. had 90M shares outstanding in Q1 2026. Against the prior quarter it is up 7.3%.

Free Cash Flow

Not reported for Q1 2026.

Dividends Per Share

Not reported for Q1 2026.

Margins & Returns

Return on Equity

-91.5%

YoY-17.4pp

Leap Therapeutics, Inc.'s ROE was -91.5% in Q1 2026, measuring profit generated per dollar of shareholder equity. This is down 17.4 percentage points from the same quarter a year earlier.

Gross Margin

Not reported for Q1 2026.

Operating Margin

Not reported for Q1 2026.

Net Margin

Not reported for Q1 2026.

Capital Allocation

R&D Spending

$161K

YoY-98.8%

Leap Therapeutics, Inc. invested $161K in research and development in Q1 2026. This represents a decrease of 98.8% from the same quarter a year earlier.

Share Buybacks

Not reported for Q1 2026.

Capital Expenditures

Not reported for Q1 2026.

LPTX 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.

LPTX quarterly income statement

Metric	TTM	FY2510-K	FY2410-K	FY2310-K	FY22	FY21	FY20	FY19	FY18	FY17	FY16
Revenue	N/A	N/A	N/A	N/A	N/A	$1.5M0.0%	$1.5M	N/A	N/A	N/A	N/A
R&D Expenses	N/A	$25.7M-55.1%	$57.2M-21.9%	$73.2M+62.9%	$45.0M+39.8%	$32.2M+57.5%	$20.4M-16.2%	$24.4M+11.6%	$21.8M-3.0%	$22.5M-3.4%	$23.3M
SG&A Expenses	N/A	$10.9M-15.4%	$12.8M-7.0%	$13.8M+17.0%	$11.8M+9.6%	$10.8M+12.0%	$9.6M+5.8%	$9.1M+1.8%	$8.9M-9.4%	$9.8M+145.5%	$4.0M
Operating Income	N/A	-$41.1M+41.4%	-$70.1M+19.5%	-$87.0M-53.3%	-$56.8M-37.0%	-$41.4M-45.2%	-$28.5M+14.7%	-$33.5M-8.8%	-$30.8M+4.9%	-$32.4M-18.5%	-$27.3M
EBITDA	N/A	-$41.1M+41.4%	-$70.1M+19.5%	-$87.0M-53.4%	-$56.7M-37.1%	-$41.4M-45.2%	-$28.5M+14.7%	-$33.4M-8.8%	-$30.7M+5.0%	-$32.3M-18.4%	-$27.3M
Interest Expense	N/A	$24K	N/A	N/A	$54K+31.7%	$41K+5.1%	$39K+69.6%	$23K+21.1%	$19K-96.4%	$528K	N/A
Income Tax	N/A	$5.3M+798.3%	$585K	N/A	$147K+712.5%	-$24K-1100.0%	-$2K+33.3%	-$3K-115.0%	$20K+112.7%	-$157K	N/A
Net Income	N/A	$5.0M+107.4%	-$68.0M+16.0%	-$81.0M-48.4%	-$54.6M-34.5%	-$40.6M-47.5%	-$27.5M+16.4%	-$32.9M-42.2%	-$23.1M+22.2%	-$29.7M-16.0%	-$25.6M
EPS (Basic)	N/A	$0.07+103.9%	-$1.81+54.5%	-$3.98+17.4%	-$4.82-925.5%	-$0.47+25.4%	-$0.63+57.1%	-$1.47+10.4%	-$1.64+49.8%	-$3.27	N/A
EPS (Diluted)	—	$0.07	-$1.81	-$3.98	-$4.82	-$0.47	-$0.63	-$1.47	-$2.11+36.3%	-$3.31	N/A
Diluted Shares (Avg)	N/A	71M	38M	20M	11M	86M	59M	23M	14M+56.9%	9M	N/A

Metric	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q	Q2'2410-Q
R&D Expenses	$161K-98.8%	N/A	$1.2M-91.6%	$10.5M-41.1%	$12.9M+14.3%	N/A	$14.9M+29.7%	$17.9M+61.1%
SG&A Expenses	$4.7M+54.9%	N/A	$1.9M-34.7%	$1.8M-46.0%	$3.0M-14.7%	N/A	$2.9M-11.7%	$3.4M-5.4%
Operating Income	-$4.8M+69.7%	N/A	-$3.2M+82.3%	-$16.9M+20.6%	-$15.9M-7.4%	N/A	-$17.9M-20.4%	-$21.3M-44.9%
Interest Expense	$7K+16.7%	N/A	$10K	$7K	$6K	N/A	N/A	N/A
Income Tax	-$5.1M	N/A	$202K-71.5%	N/A	N/A	N/A	$708K	N/A
Net Income	-$77.2M-399.9%	N/A	-$3.3M+81.8%	-$16.6M+17.3%	-$15.4M-11.7%	N/A	-$18.2M-32.7%	-$20.1M-50.3%
EPS (Basic)	-$0.46-24.3%	N/A	-$0.08+81.8%	-$0.40+23.1%	-$0.37+27.5%	N/A	-$0.44+13.7%	-$0.52+42.9%
EPS (Diluted)	-$0.46	N/A	-$0.08+81.8%	-$0.40+23.1%	-$0.37	N/A	-$0.44	-$0.52
Diluted Shares (Avg)	168M	N/A	41M+0.6%	41M+5.9%	41M	N/A	41M	39M

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

LPTX Balance Sheet

LPTX quarterly balance sheet

Metric	FY2510-K	FY2410-K	FY2310-K	FY22	FY21	FY20	FY19	FY18	FY17	FY16
Total Assets	$163.2M+232.2%	$49.1M-32.5%	$72.8M+3.5%	$70.4M-40.3%	$117.9M+116.9%	$54.4M+630.0%	$7.4M-61.0%	$19.1M-34.4%	$29.1M+350.1%	$6.5M
Current Assets	$162.1M+237.4%	$48.0M-32.9%	$71.6M+5.4%	$68.0M-41.9%	$116.9M+123.6%	$52.3M+1132.6%	$4.2M-75.5%	$17.3M-37.4%	$27.7M+586.5%	$4.0M
Cash & Equivalents	$14.0M-70.3%	$47.2M-33.1%	$70.6M+7.9%	$65.5M-43.0%	$114.9M+120.7%	$52.1M+1238.2%	$3.9M-76.1%	$16.3M-36.7%	$25.7M+3145.5%	$793K
Short-Term Investments	$0	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Long-Term Investments	$0	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Total Liabilities	$9.7M-31.3%	$14.1M+11.0%	$12.7M+10.4%	$11.5M+14.6%	$10.0M+29.8%	$7.7M-16.1%	$9.2M-7.1%	$9.9M-44.8%	$17.9M-83.2%	$106.7M
Current Liabilities	$4.6M-67.6%	$14.1M+11.0%	$12.7M+13.0%	$11.2M+12.4%	$10.0M+35.5%	$7.4M-13.1%	$8.5M+31.5%	$6.5M+6.0%	$6.1M-83.2%	$36.2M
Non-Current Liabilities	$5.1M	$0	$0-100.0%	$262K+608.1%	$37K-89.4%	$348K-51.1%	$711K-79.4%	$3.4M-70.9%	$11.9M-83.2%	$70.5M
Total Equity	$153.5M+338.0%	$35.0M-41.7%	$60.1M+2.2%	$58.9M-45.4%	$107.9M+131.3%	$46.7M+2767.3%	-$1.7M-119.1%	$9.2M-17.5%	$11.1M+111.1%	-$100.2M
Retained Earnings	-$462.5M+1.0%	-$467.4M-17.0%	-$399.6M-25.6%	-$318.2M-20.7%	-$263.6M-18.2%	-$223.0M-14.3%	-$195.2M-27.1%	-$153.5M-17.7%	-$130.4M-29.5%	-$100.7M

Metric	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q	Q2'2410-Q
Total Assets	$87.4M+150.5%	$163.2M+232.2%	$11.4M-82.5%	$20.0M-75.4%	$34.9M-39.8%	$49.1M-32.5%	$65.0M-21.7%	$81.4M-15.1%
Current Assets	$81.9M+141.9%	$162.1M+237.4%	$10.5M-83.5%	$19.2M-75.9%	$33.9M-39.7%	$48.0M-32.9%	$63.8M-22.0%	$79.6M-15.2%
Cash & Equivalents	$6.7M-79.6%	$14.0M-70.3%	$9.7M-84.6%	$18.1M-76.9%	$32.7M-40.4%	$47.2M-33.1%	$62.8M-22.2%	$78.5M-14.2%
Total Liabilities	$3.0M-78.6%	$9.7M-31.3%	$8.7M-45.9%	$14.3M-8.4%	$14.0M+32.6%	$14.1M+11.0%	$16.1M+45.8%	$15.6M+32.5%
Current Liabilities	$3.0M-78.6%	$4.6M-67.6%	$8.7M-45.9%	$14.3M-8.2%	$14.0M+34.5%	$14.1M+11.0%	$16.1M+45.8%	$15.6M+32.6%
Non-Current Liabilities	$0	$5.1M	$0	$0-100.0%	$0-100.0%	$0	$0	$39K+2.6%
Total Equity	$84.4M+304.9%	$153.5M+338.0%	$2.7M-94.5%	$5.7M-91.3%	$20.8M-56.0%	$35.0M-41.7%	$49.0M-32.0%	$65.8M-21.7%
Retained Earnings	-$539.7M-11.8%	-$462.5M+1.0%	-$502.8M-11.2%	-$499.4M-15.1%	-$482.8M-16.8%	-$467.4M-17.0%	-$451.9M-16.7%	-$433.8M-16.2%

Not reported in any period shown, so not listed: Short-Term Investments, Inventory, Accounts Receivable, Long-Term Investments, Goodwill, Long-Term Debt.

LPTX Cash Flow Statement

LPTX quarterly cash flow statement

Metric	TTM	FY2510-K	FY2410-K	FY2310-K	FY22	FY21	FY20	FY19	FY18	FY17	FY16
Operating Cash Flow	-$32.9M	-$43.9M+27.2%	-$60.3M-37.8%	-$43.8M+10.8%	-$49.0M-39.5%	-$35.2M-35.4%	-$26.0M+3.5%	-$26.9M-3.3%	-$26.0M-17.6%	-$22.1M+12.6%	-$25.3M
Depreciation & Amortization	N/A	$0-100.0%	$5K-66.7%	$15K-6.3%	$16K-44.8%	$29K-14.7%	$34K-27.7%	$47K-4.1%	$49K+2.1%	$48K+92.0%	$25K
Stock-Based Compensation	N/A	$4.9M-11.0%	$5.5M+7.3%	$5.1M-1.0%	$5.2M+40.5%	$3.7M+43.3%	$2.6M-31.1%	$3.7M+7.6%	$3.5M-38.1%	$5.6M+12344.4%	$45K
Capital Expenditures	N/A	N/A	N/A	N/A	N/A	N/A	N/A	$100K	N/A	$64K-55.6%	$144K
Free Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-$27.0M	N/A	-$22.2M+12.9%	-$25.5M
Investing Cash Flow	N/A	-$97.0M	N/A	$49.0M	N/A	N/A	$25K+129.4%	-$85K	N/A	-$64K+55.6%	-$144K
Financing Cash Flow	$112.8M	$107.6M+189.5%	$37.2M+124046.7%	-$30K+85.7%	-$210K-100.2%	$98.0M+32.5%	$74.0M+399.4%	$14.8M-6.8%	$15.9M-66.7%	$47.8M+86.4%	$25.6M

Metric	Q1'2610-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	-$3.4M+76.3%	-$6.6M+57.3%	-$8.3M+46.7%	-$14.5M-6.0%	-$14.5M+6.7%	-$15.5M-49.4%	-$15.6M-48.7%	-$13.7M-34.2%
Stock-Based Compensation	$2.1M+77.0%	N/A	N/A	N/A	$1.2M-3.5%	N/A	N/A	N/A
Investing Cash Flow	-$9.0M	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Financing Cash Flow	$5.1M+8419.7%	$108.0M+103698.1%	-$121K-83.3%	-$119K-100.3%	-$61K-310.3%	$104K	-$66K-6500.0%	$37.1M

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

LPTX 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.

LPTX quarterly financial ratios

Metric	FY2510-K	FY2410-K	FY2310-K	FY22	FY21	FY20	FY19	FY18	FY17	FY16
Operating Margin	N/A	N/A	N/A	N/A	-2761.7%	-1902.6%	N/A	N/A	N/A	N/A
Net Margin	N/A	N/A	N/A	N/A	-2705.8%	-1834.3%	N/A	N/A	N/A	N/A
Return on Equity	3.3%+197.3pp	-194.0%-59.3pp	-134.7%-41.9pp	-92.8%-55.1pp	-37.6%+21.4pp	-59.0%	N/A	-252.2%+15.2pp	-267.4%	N/A
Return on Assets	3.1%+141.5pp	-138.4%-27.2pp	-111.2%-33.6pp	-77.6%-43.2pp	-34.4%+16.2pp	-50.6%+391.1pp	-441.7%-320.4pp	-121.3%-19.0pp	-102.3%+294.7pp	-397.0%
Current Ratio	35.56+32.1x	3.41-2.2x	5.64-0.4x	6.05-5.6x	11.70+4.6x	7.09+6.6x	0.50-2.2x	2.69-1.9x	4.55+4.4x	0.11
Debt-to-Equity	0.06-0.3x	0.40+0.2x	0.210.0x	0.20+0.1x	0.09-0.1x	0.17	N/A	1.08-0.5x	1.61	N/A
Asset Turnover	N/A	N/A	N/A	N/A	0.010.0x	0.03	N/A	N/A	N/A	N/A

Metric	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q	Q2'2410-Q
Return on Equity	-91.5%-17.4pp	N/A	-122.6%-85.4pp	-291.1%-260.5pp	-74.1%-44.9pp	N/A	-37.1%-18.1pp	-30.6%-14.7pp
Return on Assets	-88.3%-44.1pp	N/A	-29.0%-1.0pp	-83.0%-58.3pp	-44.3%-20.4pp	N/A	-27.9%-11.4pp	-24.7%-10.8pp
Current Ratio	27.28+24.9x	35.56+32.1x	1.21-2.8x	1.34-3.8x	2.41-3.0x	3.41-2.2x	3.97-3.4x	5.10-2.9x
Debt-to-Equity	0.04-0.6x	0.06-0.3x	3.23+2.9x	2.51+2.3x	0.67+0.5x	0.40+0.2x	0.33+0.2x	0.24+0.1x

Not reported in any period shown, so not listed: Gross Margin, Operating Margin, Net Margin, 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
Leap Therapeutics, Inc. LPTX	FY2025	N/A	$5.0M	N/A	$11.8M	—
Moleculin Biotech, Inc. MBRX	FY2025	$0	$33.6M	N/A	$9.9M	—
XTL Biopharmaceuticals Ltd. XTLB	FY2025	$451K	N/A	N/A	$5.3M	—
Sensei Biotherapeutics, Inc. SNSE	FY2025	N/A	-$21.1M	N/A	$18.6M	—
Mustang Bio, Inc. MBIO	FY2025	N/A	-$1.9M	N/A	$3.6M	—

Where Leap Therapeutics, Inc. Ranks

Frequently Asked Questions

Is Leap Therapeutics, Inc. profitable?

Yes, Leap Therapeutics, Inc. (LPTX) reported a net income of $5.0M in fiscal year 2025.

What is Leap Therapeutics, Inc.'s EBITDA?

Leap Therapeutics, Inc. (LPTX) had EBITDA of -$41.1M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

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

Leap Therapeutics, Inc. (LPTX) has a return on equity of 3.3% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Leap Therapeutics, Inc.'s operating cash flow?

Leap Therapeutics, Inc. (LPTX) recorded an outflow of $43.9M in operating cash flow during fiscal year 2025, representing cash used by core business activities.

What are Leap Therapeutics, Inc.'s total assets?

Leap Therapeutics, Inc. (LPTX) had $163.2M in total assets as of fiscal year 2025, including both current and long-term assets.

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

Leap Therapeutics, Inc. (LPTX) invested $25.7M in research and development during fiscal year 2025.

How many shares does Leap Therapeutics, Inc. have outstanding?

Leap Therapeutics, Inc. (LPTX) had 84M shares outstanding as of fiscal year 2025.

What is Leap Therapeutics, Inc.'s current ratio?

Leap Therapeutics, Inc. (LPTX) had a current ratio of 35.56 as of fiscal year 2025, which is generally considered healthy.

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

Leap Therapeutics, Inc. (LPTX) had a debt-to-equity ratio of 0.06 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

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

Leap Therapeutics, Inc. (LPTX) had a return on assets of 3.1% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

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

At the end of fiscal year 2025, Leap Therapeutics, Inc. (LPTX) held $14.0M in cash, cash equivalents and investments, and reported an operating cash outflow of $43.9M over that year. Dividing the one by the other, the reported balance equals about 4 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 Leap Therapeutics, Inc.'s Piotroski F-Score?

Leap Therapeutics, Inc. (LPTX) has a Piotroski F-Score of 3 out of 6 computable signals; 3 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 Leap Therapeutics, Inc.'s earnings high quality?

For every $1 of reported earnings, Leap Therapeutics, Inc. (LPTX) used $8.78 of operating cash (-$43.9M OCF vs $5.0M net income). Earnings that no cash stands behind rest on accounting accruals, which cannot be repeated indefinitely. 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 Leap Therapeutics, Inc. cover its interest payments?

Leap Therapeutics, Inc. (LPTX) reported an operating loss of $41.1M against $24K 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.