Moelis & Co (MC) Financials

FY2025 annual

Revenue Not reported for FY2025

Net Income $259.6M +71.4% YoY

Free Cash Flow $540.0M +30.0% YoY

Operating Cash Flow $576.3M +34.8% YoY

Market Cap $5.1B as of Sep 5, 2026

Price / Sales n/m no revenue reported

Price / Earnings 19.7x on $259.6M net income, FY2025

Price / Book 10.1x on $505.8M 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 Sep 5, 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 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 MC SEC filings page.

This page shows Moelis & Co (MC) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 14 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 MC FY2025 2026-08-29

Moelis & Company converts cyclical earnings into cash while reinvestment stays small and leverage remains material.

Net income moved from $423.0M in FY2021 to -$27.5M in FY2023, exposing a pronounced earnings cycle rather than a steady profit engine. Yet positive operating cash flow reached $158.5M in FY2023 and rose to $576.3M by FY2025, while free cash flow stayed close to it; cash conversion therefore tracks operating activity better than any single year’s net income.

In FY2025, balance-sheet growth lifted assets to $1.7B and equity to $568.4M, giving the company a larger capital base. The leverage ratio eased to 1.9x from 2.0x in FY2024, indicating that growth was not funded solely by rising obligations.

FY2025 free cash flow was $540.0M against operating cash flow of $576.3M, showing limited leakage between accounting cash generation and spendable cash. Capital expenditures were only $36.3M, a small claim relative to operations; the same low-reinvestment pattern appeared in FY2024.

Financial Health Signals

Financial health score not available

Moelis & Co 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.

Earnings Quality Cash-Backed

2.22x

For every $1 of reported earnings, Moelis & Co generates $2.22 in operating cash flow ($576.3M OCF vs $259.6M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Key Financial Metrics

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Earnings & Revenue

EBITDA

$77.0M

YoY+21.5%

QoQ+75.1%

Moelis & Co's EBITDA was $77.0M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 21.5% from the same quarter a year earlier. Against the prior quarter it is up 75.1%.

Net Income

$55.1M

YoY+17.9%

QoQ+30.3%

Moelis & Co reported $55.1M in net income in Q2 2026. This represents an increase of 17.9% from the same quarter a year earlier. Against the prior quarter it is up 30.3%.

Revenue

Not reported for Q2 2026.

EPS (Diluted)

Not reported for Q2 2026.

Cash & Balance Sheet

Free Cash Flow

$215.9M

YoY+8.2%

QoQ+174.0%

5Y CAGR-2.8%

10Y CAGR+13.0%

Moelis & Co generated $215.9M in free cash flow in Q2 2026, representing cash available after capex. This represents an increase of 8.2% from the same quarter a year earlier. Against the prior quarter it is up 174.0%.

Cash & Debt

$207.7M

YoY-6.3%

QoQ+35.8%

5Y CAGR+1.1%

10Y CAGR+6.3%

Moelis & Co held $207.7M in cash as of Q2 2026; long-term debt is not reported for that period.

Dividends Per Share

Not reported for Q2 2026.

Shares Outstanding

Not reported for Q2 2026.

Margins & Returns

Return on Equity

10.9%

YoY+1.8pp

QoQ+2.2pp

Moelis & Co's ROE was 10.9% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is up 1.8 percentage points from the same quarter a year earlier. Against the prior quarter it is up 2.2 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

Capital Expenditures

$13.7M

YoY+187.6%

QoQ+6.9%

5Y CAGR+15.8%

10Y CAGR+26.6%

Moelis & Co invested $13.7M in capex in Q2 2026, funding long-term assets and infrastructure. This represents an increase of 187.6% from the same quarter a year earlier. Against the prior quarter it is up 6.9%.

R&D Spending

Not reported for Q2 2026.

Share Buybacks

Not reported for Q2 2026.

MC 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.

MC quarterly income statement

Metric	TTM	FY25DEF 14A	FY24DEF 14A	FY23DEF 14A	FY22DEF 14A	FY21DEF 14A	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K
Operating Income	N/A	$273.9M+58.4%	$172.9M+528.6%	-$40.4M-118.7%	$216.1M-56.4%	$495.9M+86.6%	$265.7M+132.0%	$114.5M-49.5%	$226.8M+38.0%	$164.3M+2.0%	$161.1M+17.2%	$137.5M+188.0%	$47.7M-31.9%	$70.1M+84.3%	$38.0M
EBITDA	N/A	$285.7M+55.8%	$183.4M+672.5%	-$32.0M-114.3%	$224.1M-55.5%	$503.2M+86.1%	$270.4M+126.3%	$119.5M-48.4%	$231.4M+37.9%	$167.8M+2.2%	$164.3M+17.2%	$140.1M+180.2%	$50.0M-30.9%	$72.4M+78.5%	$40.6M
Interest Expense	N/A	N/A	N/A	N/A	N/A	N/A	$748K-24.4%	$990K+51.6%	$653K+60.0%	$408K+55.1%	$263K	N/A	N/A	N/A	N/A
Income Tax	N/A	$67.9M+52.4%	$44.5M+2829.7%	-$1.6M-103.4%	$47.6M-58.0%	$113.3M+119.3%	$51.7M+337.4%	$11.8M-61.2%	$30.4M-86.4%	$223.8M+802.2%	$24.8M+4.0%	$23.8M+73.6%	$13.7M+391.8%	$2.8M+11.8%	$2.5M
Net Income	N/A	$259.6M+71.4%	$151.5M+650.6%	-$27.5M-116.3%	$168.7M-60.1%	$423.0M+93.6%	$218.4M+61.0%	$135.7M-34.8%	$208.0M+64.4%	$126.5M-10.8%	$141.9M+18.0%	$120.2M+269.3%	$32.6M-53.6%	$70.2M+99.4%	$35.2M

Metric	Q2'2610-Q	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q
Operating Income	$72.8M+20.1%	$40.5M+9.7%	N/A	$48.3M+210.4%	$60.6M+202.1%	$36.9M+536.2%	N/A	$15.6M+177.7%
EBITDA	$77.0M+21.5%	$44.0M+10.8%	N/A	$51.3M+179.3%	$63.4M+181.7%	$39.7M+385.4%	N/A	$18.4M+202.0%
Income Tax	$20.2M+15.9%	$3.9M+136.1%	N/A	$22.2M+199.8%	$17.4M+153.6%	-$10.7M-43.8%	N/A	$7.4M+476.9%
Net Income	$55.1M+17.9%	$42.3M-21.3%	N/A	$60.1M+212.2%	$46.8M+213.4%	$53.8M+207.5%	N/A	$19.2M+269.2%

Not reported in any period shown, so not listed: Revenue, Cost of Revenue, Gross Profit, R&D Expenses, SG&A Expenses, Interest Expense, EPS (Basic), EPS (Diluted), Diluted Shares (Avg).

MC Balance Sheet

MC quarterly balance sheet

Metric	FY25DEF 14A	FY24DEF 14A	FY23DEF 14A	FY22DEF 14A	FY21DEF 14A	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K
Total Assets	$1.7B+26.2%	$1.4B+16.9%	$1.2B-3.0%	$1.2B-21.8%	$1.6B+30.0%	$1.2B+11.6%	$1.1B+17.2%	$914.4M+30.8%	$699.1M+16.7%	$598.8M+11.0%	$539.5M+16.2%	$464.2M+4.7%	$443.5M	N/A
Cash & Equivalents	$508.6M+23.3%	$412.5M+121.3%	$186.4M-9.9%	$206.8M-60.2%	$520.2M+156.9%	$202.5M+20.7%	$167.8M-35.7%	$261.1M+22.5%	$213.2M-33.2%	$318.9M+28.6%	$248.0M+25.3%	$197.9M-34.7%	$303.0M+63.2%	$185.6M
Short-Term Investments	$0	$0	$0-100.0%	$265.2M+0.7%	$263.3M+24.3%	$211.8M-0.7%	$213.2M+48.2%	$143.9M+49.8%	$96.1M	$0	$0	$0	$0	$0
Accounts Receivable	$82.2M+59.9%	$51.4M+0.4%	$51.2M+7.1%	$47.8M+14.2%	$41.9M-53.1%	$89.3M+98.1%	$45.1M-17.2%	$54.4M-4.1%	$56.7M+144.9%	$23.2M-20.0%	$28.9M+25.9%	$23.0M-20.1%	$28.8M	N/A
Long-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Total Liabilities	$1.1B+17.9%	$899.6M+10.1%	$817.3M+7.8%	$757.9M-29.7%	$1.1B+43.3%	$752.0M+10.9%	$677.9M+24.9%	$542.6M+52.9%	$354.8M+2.1%	$347.4M+23.2%	$282.0M-2.7%	$289.9M+116.2%	$134.1M	N/A
Total Equity	$568.4M+28.7%	$441.6M+25.4%	$352.1M-20.8%	$444.5M-9.1%	$489.1M+1.9%	$479.9M+8.4%	$442.8M+9.5%	$404.4M+24.4%	$324.9M+53.4%	$211.8M+25.8%	$168.4M+48.5%	$113.4M-63.4%	$309.4M+18.9%	$260.1M
Retained Earnings	-$801.2M+2.5%	-$821.6M-7.0%	-$767.6M-36.9%	-$560.7M-4.7%	-$535.3M-27.2%	-$420.7M-29.8%	-$324.2M-36.3%	-$237.8M-69.9%	-$139.9M-105.1%	-$68.2M-344.8%	-$15.3M+36.4%	-$24.1M	N/A	N/A

Metric	Q2'2610-Q	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q
Total Assets	$1.4B+4.9%	$1.3B+6.9%	$1.7B+26.2%	$1.5B+31.6%	$1.3B+27.8%	$1.2B+19.2%	$1.4B+16.9%	$1.2B+2.9%
Cash & Equivalents	$207.7M-6.3%	$152.9M-17.1%	$508.6M+23.3%	$281.6M+93.8%	$221.7M+47.4%	$184.5M+79.8%	$412.5M+121.3%	$145.3M-1.4%
Short-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Accounts Receivable	$66.9M+18.4%	$97.9M+76.6%	$82.2M+59.9%	$55.2M-4.4%	$56.5M+9.6%	$55.5M+11.0%	$51.4M+0.4%	$57.8M+126.4%
Long-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Total Liabilities	$766.6M+2.7%	$667.0M+4.1%	$1.1B+17.9%	$898.6M+18.6%	$746.5M+12.0%	$640.5M+3.3%	$899.6M+10.1%	$758.0M+2.4%
Total Equity	$505.8M-2.0%	$487.1M+0.5%	$568.4M+28.7%	$535.0M+45.6%	$516.0M+44.3%	$484.5M+32.9%	$441.6M+25.4%	$367.5M+0.1%
Retained Earnings	-$822.4M+1.8%	-$817.3M+1.0%	-$801.2M+2.5%	-$836.7M+2.9%	-$837.6M-0.8%	-$825.1M-3.3%	-$821.6M-7.0%	-$862.1M-20.3%

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

MC Cash Flow Statement

MC quarterly cash flow statement

Metric	TTM	FY25DEF 14A	FY24DEF 14A	FY23DEF 14A	FY22DEF 14A	FY21DEF 14A	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K
Operating Cash Flow	$488.3M	$576.3M+34.8%	$427.5M+169.8%	$158.5M+380.3%	$33.0M-96.5%	$937.0M+118.3%	$429.2M+105.1%	$209.3M-46.5%	$390.9M+67.6%	$233.2M+0.7%	$231.6M+62.2%	$142.8M-31.7%	$208.9M+77.6%	$117.7M+6.3%	$110.7M
Depreciation & Amortization	N/A	$11.9M+13.7%	$10.4M+25.6%	$8.3M+4.3%	$8.0M+10.1%	$7.2M+53.8%	$4.7M-5.2%	$5.0M+7.4%	$4.6M+30.5%	$3.5M+11.3%	$3.2M+20.8%	$2.6M+16.2%	$2.3M-1.2%	$2.3M-8.4%	$2.5M
Stock-Based Compensation	N/A	$230.3M+42.6%	$161.4M+2.1%	$158.2M+22.7%	$128.9M-23.2%	$167.9M+25.7%	$133.6M+7.6%	$124.2M+1.0%	$123.0M+27.8%	$96.3M+25.0%	$77.0M+67.0%	$46.1M-61.5%	$119.8M+142.6%	$49.4M+17.4%	$42.0M
Capital Expenditures	$54.9M	$36.3M+200.4%	$12.1M-27.6%	$16.7M+180.3%	$6.0M-63.7%	$16.4M-59.6%	$40.7M+528.7%	$6.5M-6.5%	$6.9M+22.5%	$5.6M+96.8%	$2.9M-28.2%	$4.0M+2.8%	$3.9M+139.6%	$1.6M-55.9%	$3.7M
Free Cash Flow	$433.4M	$540.0M+30.0%	$415.4M+193.0%	$141.8M+424.4%	$27.0M-97.1%	$920.6M+136.9%	$388.6M+91.6%	$202.8M-47.2%	$384.0M+68.8%	$227.5M-0.5%	$228.7M+64.8%	$138.8M-32.3%	$205.0M+76.7%	$116.0M+8.4%	$107.1M
Investing Cash Flow	-$47.4M	-$196.0M-1245.2%	$17.1M-64.8%	$48.6M+534.4%	-$11.2M+34.3%	-$17.0M+57.4%	-$40.0M+23.0%	-$51.9M-658.7%	$9.3M+113.4%	-$69.4M-5120.5%	$1.4M+179.5%	-$1.7M	N/A	N/A	N/A
Financing Cash Flow	-$451.8M	-$283.9M-32.0%	-$215.1M+6.1%	-$229.2M+29.9%	-$326.9M+45.7%	-$602.5M-71.3%	-$351.8M-39.2%	-$252.7M+28.2%	-$351.7M-29.1%	-$272.5M-72.5%	-$158.0M-75.2%	-$90.2M	N/A	N/A	N/A
Dividends Paid	N/A	N/A	$184.2M+1.1%	$182.2M+4.3%	$174.7M-63.6%	$480.0M+69.6%	$282.9M+35.3%	$209.2M-33.3%	$313.8M+22.7%	$255.7M+65.3%	$154.7M+91.2%	$80.9M-34.3%	$123.2M+207.1%	$40.1M	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	$293K+27.9%	$229K-93.1%	$3.3M-56.5%	$7.6M	N/A	N/A	N/A

Metric	Q2'2610-Q	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q
Operating Cash Flow	$229.5M+12.4%	-$278.8M-68.5%	$338.7M+7.4%	$198.9M+45.0%	$204.2M+45.9%	-$165.5M-0.3%	$315.3M+217.4%	$137.2M-2.1%
Depreciation & Amortization	$4.2M+52.3%	$3.5M+25.7%	$3.4M+18.7%	$3.0M+6.2%	$2.8M+13.4%	$2.8M+17.0%	$2.8M+23.5%	$2.8M+39.1%
Stock-Based Compensation	$45.5M+9.3%	$72.2M-16.3%	N/A	$38.4M+6.2%	$41.6M+60.3%	$86.2M+43.8%	N/A	$36.2M+13.1%
Capital Expenditures	$13.7M+187.6%	$12.8M+312.0%	$9.2M+296.3%	$19.3M+829.9%	$4.8M+103.3%	$3.1M-42.2%	$2.3M-56.2%	$2.1M-56.1%
Free Cash Flow	$215.9M+8.2%	-$291.6M-73.0%	$329.6M+5.3%	$179.6M+32.9%	$199.4M+44.9%	-$168.6M+1.0%	$313.0M+232.8%	$135.1M-0.2%
Investing Cash Flow	-$92.1M+13.2%	$127.6M+1928.9%	-$9.7M-363.8%	-$73.2M+23.2%	-$106.1M-414.2%	-$7.0M-105.4%	$3.7M+123.9%	-$95.3M+11.7%
Financing Cash Flow	-$81.3M-33.2%	-$204.4M-260.4%	-$99.5M-111.9%	-$66.6M-37.1%	-$61.1M+15.1%	-$56.7M-19.0%	-$47.0M-1.7%	-$48.6M-7.2%
Dividends Paid	N/A	N/A	N/A	N/A	$59.1M+14.9%	$45.1M+14.8%	$45.9M+2.7%	$47.6M+6.8%

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

MC 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.

MC quarterly financial ratios

Metric	FY25DEF 14A	FY24DEF 14A	FY23DEF 14A	FY22DEF 14A	FY21DEF 14A	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K
Return on Equity	45.7%+11.4pp	34.3%+42.1pp	-7.8%-45.8pp	38.0%-48.5pp	86.5%+41.0pp	45.5%+14.9pp	30.6%-20.8pp	51.4%+12.5pp	38.9%-28.0pp	67.0%-4.4pp	71.4%+42.7pp	28.7%+6.0pp	22.7%+9.2pp	13.5%
Return on Assets	14.9%+3.9pp	11.0%+13.3pp	-2.3%-16.2pp	13.9%-13.3pp	27.2%+8.9pp	18.3%+5.6pp	12.7%-10.1pp	22.8%+4.7pp	18.1%-5.6pp	23.7%+1.4pp	22.3%+15.3pp	7.0%-8.8pp	15.8%	N/A
Debt-to-Equity	1.87-0.2x	2.04-0.3x	2.32+0.6x	1.71-0.5x	2.20+0.6x	1.570.0x	1.53+0.2x	1.34+0.3x	1.09-0.5x	1.640.0x	1.68-0.9x	2.56+2.1x	0.43	N/A

Metric	Q2'2610-Q	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q
Return on Equity	10.9%+1.8pp	8.7%-2.4pp	N/A	11.2%+6.0pp	9.1%+4.9pp	11.1%+6.3pp	N/A	5.2%+8.3pp
Return on Assets	3.9%+0.4pp	3.3%-1.2pp	N/A	4.0%+2.3pp	3.5%+2.1pp	4.5%+2.7pp	N/A	1.7%+2.7pp
Debt-to-Equity	1.52+0.1x	1.370.0x	1.87-0.2x	1.68-0.4x	1.45-0.4x	1.32-0.4x	2.04-0.3x	2.060.0x

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
Moelis & Co MC	FY2025	N/A	$259.6M	N/A	$5.1B	—
Lazard Ltd LAZ	FY2025	$3.1B	$237.0M	7.6%	$4.4B	45/100
Pjt Partners Inc PJT	FY2025	$1.7B	$180.1M	10.5%	$4.7B	51/100
Stonex Group Inc SNEX	FY2025	$131.0B	$305.9M	0.2%	$8.4B	48/100
Piper Sandler Co`S PIPR	FY2025	$1.9B	$281.3M	14.8%	$5.4B	53/100
MARA Holdings Inc MARA	FY2025	$907.1M	-$1.3B	N/A	$4.4B	33/100

Where Moelis & Co Ranks

Frequently Asked Questions

Is Moelis & Co profitable?

Yes, Moelis & Co (MC) reported a net income of $259.6M in fiscal year 2025.

What is Moelis & Co's EBITDA?

Moelis & Co (MC) had EBITDA of $285.7M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

What is Moelis & Co's return on equity (ROE)?

Moelis & Co (MC) has a return on equity of 45.7% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Moelis & Co's free cash flow?

Moelis & Co (MC) generated $540.0M in free cash flow during fiscal year 2025. This represents a 30.0% 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 Moelis & Co's operating cash flow?

Moelis & Co (MC) generated $576.3M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Moelis & Co's total assets?

Moelis & Co (MC) had $1.7B in total assets as of fiscal year 2025, including both current and long-term assets.

What are Moelis & Co's capital expenditures?

Moelis & Co (MC) invested $36.3M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

What is Moelis & Co's debt-to-equity ratio?

Moelis & Co (MC) had a debt-to-equity ratio of 1.87 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Moelis & Co's return on assets (ROA)?

Moelis & Co (MC) had a return on assets of 14.9% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Moelis & Co's P/E ratio?

Moelis & Co (MC) trades at 19.7x earnings, its market capitalization divided by net income of $259.6M net income, FY2025. The market capitalization is $5.1B as of Sep 5, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

What is Moelis & Co's price-to-sales ratio?

Moelis & Co (MC) has no price-to-sales ratio at the moment: no revenue reported. The market capitalization is $5.1B as of Sep 5, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

Are Moelis & Co's earnings high quality?

Moelis & Co (MC) has an earnings quality ratio of 2.22x, 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.