What is MEDICURE INC's earnings per share (EPS)?

MEDICURE INC (MCUJF) reported diluted earnings per share of -$0.07 for fiscal year 2024. The change from the previous fiscal year is not meaningful, because that year’s figure was zero or negative. 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.

MEDICURE INC (MCUJF) Financials

MCUJF

FY2024 annual

Revenue $15.2M -7.4% YoY

Net Income -$722K n/m YoY

EPS (Diluted) -$0.07 n/m YoY

Operating Cash Flow $956K -39.3% YoY

Market Cap $33.6M as of Oct 23, 2026

Price / Sales 2.2x on $15.2M revenue, FY2024

Price / Earnings n/m net loss, so no earnings multiple, FY2024

Price / Book 2.4x on $14.0M equity, Q1 FY2025

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 23, 2026; every other figure is from the SEC filings on this page. Not financial advice.

Source SEC Filings (20-F/6-K) Latest period Q1 FY2025, ended Mar 31, 2025 Reported May 21, 2025 Currency USD FYE December

Newest figures come from the 6-K for Q1 FY2025, filed May 21, 2025. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the MCUJF SEC filings page.

MEDICURE INC (MCUJF) reported $15.2M in revenue for fiscal year 2024, down 7.4% from the prior fiscal year. This page shows its 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).

Financial Health Signals

Financial health score not available

MEDICURE 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

3/8

MEDICURE INC passes 3 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 2 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality Mixed

N/A

MEDICURE INC reported a net loss of $722K while generating $956K 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

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Earnings & Revenue

Revenue

$3.8M

YoY-9.3%

MEDICURE INC generated $3.8M in revenue in Q1 2025. This represents a decrease of 9.3% from the same quarter a year earlier.

Net Income

-$483K

YoY-1381.4%

MEDICURE INC reported a net loss of $483K in Q1 2025. This represents a decrease of 1381.4% from the same quarter a year earlier.

EPS (Diluted)

-$0.05

YoYn/m

MEDICURE INC earned -$0.05 per diluted share (EPS) in Q1 2025. The change from the same quarter a year earlier is not meaningful, because that figure was zero or negative.

EBITDA

Not reported for Q1 2025.

Cash & Balance Sheet

Cash & Debt

$5.0M

QoQ+0.5%

MEDICURE INC held $5.0M in cash as of Q1 2025; no long-term debt figure is on record for that period.

Shares Outstanding

Diluted avg 10M

MEDICURE INC had a weighted average of 10M diluted shares in Q1 2025; the shares outstanding count is not reported for that period.

Free Cash Flow

Not reported for Q1 2025.

Dividends Per Share

Not reported for Q1 2025.

Margins & Returns

Gross Margin

51.8%

YoY-16.6pp

MEDICURE INC's gross margin was 51.8% in Q1 2025, indicating the percentage of revenue retained after direct costs. This is down 16.6 percentage points from the same quarter a year earlier.

Net Margin

-12.7%

YoY-13.6pp

MEDICURE INC's net profit margin was -12.7% in Q1 2025, showing the share of revenue converted to profit. This is down 13.6 percentage points from the same quarter a year earlier.

Return on Equity

-3.5%

YoY-3.7pp

MEDICURE INC's quarterly ROE was -3.5% in Q1 2025: one quarter's net income over shareholder equity, not annualized. This is down 3.7 percentage points from the same quarter a year earlier.

Operating Margin

Not reported for Q1 2025.

Capital Allocation

R&D Spending

$396K

YoY-20.6%

MEDICURE INC invested $396K in research and development in Q1 2025. This represents a decrease of 20.6% from the same quarter a year earlier.

Share Buybacks

Not reported for Q1 2025.

Capital Expenditures

Not reported for Q1 2025.

MCUJF 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.

MCUJF quarterly income statement

Metric	FY2420-F	FY2320-F	FY2220-F	FY2120-F	FY2020-F	FY1920-F	FY1820-F	FY1720-F	FY1620-F	FY1520-F
Revenue	$15.2M-7.4%	$16.4M-3.6%	$17.0M+0.2%	$17.0M+86.9%	$9.1M-41.5%	$15.6M-27.1%	$21.3M-1.6%	$21.7M-0.7%	$21.8M+36.8%	$16.0M
Cost of Revenue	$6.1M+4.9%	$5.8M+13.0%	$5.2M-26.9%	$7.1M+39.1%	$5.1M-9.4%	$5.6M+84.4%	$3.0M+9.9%	$2.8M-0.1%	$2.8M+69.7%	$1.6M
Gross Profit	$9.1M-14.2%	$10.6M-10.8%	$11.9M+19.4%	$9.9M+147.3%	$4.0M-59.6%	$10.0M-45.6%	$18.3M-3.3%	$18.9M-0.8%	$19.1M+33.0%	$14.3M
R&D Expenses	$2.1M+17.4%	$1.8M-10.5%	$2.0M+44.8%	$1.4M-45.7%	$2.6M-22.9%	$3.4M-31.5%	$4.9M+19.1%	$4.1M+52.1%	$2.7M-23.1%	$3.5M
Operating Income	N/A	N/A	N/A	N/A	N/A	N/A	-$899K-130.8%	$2.9M-40.1%	$4.9M+42.7%	$3.4M
EBITDA	N/A	N/A	N/A	N/A	N/A	N/A	-$680K-122.7%	$3.0M	N/A	N/A
Interest Expense	$115K+132.7%	$49Kn/m	-$17K-157.1%	$30Kn/m	-$600K-3634.3%	$17Kn/m	-$778K-216.2%	$669K-63.8%	$1.8M-38.0%	$3.0M
Income Tax	-$178Kn/m	-$19Kn/m	-$15K-159.0%	$25Kn/m	$0-100.0%	$112K-83.0%	$657Kn/m	-$7.2M-5809.1%	$127K-53.7%	$274K
Net Income	-$722Kn/m	-$698K-169.2%	$1.0Mn/m	-$569Kn/m	-$5.4Mn/m	-$15.3M-630.5%	$2.9M-91.7%	$34.7M+72.6%	$20.1M+1567.0%	$1.2M
EPS (Basic)	-$0.07n/m	-$0.07-171.0%	$0.10n/m	-$0.05n/m	-$0.50n/m	-$1.02-655.9%	$0.18-91.8%	$2.22+65.7%	$1.34+1446.4%	$0.09
EPS (Diluted)	-$0.07n/m	-$0.07-171.0%	$0.10n/m	-$0.05n/m	-$0.50n/m	-$1.02-679.0%	$0.18-90.8%	$1.91+64.3%	$1.16+1361.5%	$0.08
Diluted Shares (Avg)	10M0.0%	10M0.0%	10M+1.8%	10M0.0%	10M-31.7%	15M-9.4%	17M-8.7%	18M+4.7%	17M+9.8%	16M

Metric	Q1'256-K	Q4'246-K	Q1'246-K	Q4'2320-F	Q4'2220-F	Q4'2120-F	Q4'2020-F	Q4'1920-F
Revenue	$3.8M-9.3%	N/A	$4.2M	N/A	N/A	N/A	N/A	N/A
Cost of Revenue	$1.8M+38.4%	N/A	$1.3M	N/A	N/A	N/A	N/A	N/A
Gross Profit	$2.0M-31.3%	N/A	$2.9M	N/A	N/A	N/A	N/A	N/A
R&D Expenses	$396K-20.6%	N/A	$499K	N/A	N/A	N/A	N/A	N/A
Interest Expense	$695n/m	N/A	-$32K	N/A	N/A	N/A	N/A	N/A
Income Tax	$26Kn/m	N/A	-$23K	N/A	N/A	N/A	N/A	N/A
Net Income	-$483K-1381.4%	N/A	$38K	N/A	N/A	N/A	N/A	N/A
EPS (Basic)	-$0.05n/m	N/A	$0.00	N/A	N/A	N/A	N/A	N/A
EPS (Diluted)	-$0.05n/m	N/A	$0.00	N/A	N/A	N/A	N/A	N/A
Diluted Shares (Avg)	10M-0.6%	N/A	10M	N/A	N/A	N/A	N/A	N/A

Not reported in any period shown, so not listed: SG&A Expenses, Operating Income, EBITDA.

MCUJF Balance Sheet

MCUJF quarterly balance sheet

Metric	FY2420-F	FY2320-F	FY2220-F	FY2120-F	FY2020-F	FY1920-F	FY1820-F	FY1720-F	FY1620-F	FY1520-F
Total Assets	$20.6M-3.0%	$21.3M-3.8%	$22.1M-0.6%	$22.2M-16.7%	$26.7M-18.1%	$32.6M-57.1%	$76.0M-26.2%	$103.0M-35.6%	$159.9M	N/A
Current Assets	$11.0M-4.2%	$11.5M+5.0%	$11.0M+11.7%	$9.8M-20.1%	$12.3M-49.2%	$24.2M-63.1%	$65.7M-28.3%	$91.5M+122.6%	$41.1M	N/A
Cash & Equivalents	$5.0M+3.5%	$4.8M+34.4%	$3.6M+24.1%	$2.9M+35.8%	$2.1M-78.7%	$10.0M-43.5%	$17.7M+321.0%	$4.2M-54.0%	$9.1M+254.3%	$2.6M
Inventory	$2.3M+3.8%	$2.2M-7.7%	$2.4M-8.6%	$2.6M-35.3%	$4.0M-17.5%	$4.9M+57.1%	$3.1M+26.5%	$2.5M-72.9%	$9.1M	N/A
Accounts Receivable	$3.7M+1.3%	$3.6M-12.8%	$4.2M+14.2%	$3.6M-11.5%	$4.1M-47.7%	$7.9M-0.1%	$7.9M+15.0%	$6.9M-46.4%	$12.8M	N/A
Goodwill	$2.3M-0.3%	$2.3M+0.1%	$2.3M+0.9%	$2.3M-0.6%	$2.3Mn/m	$0	N/A	N/A	$35.4M	N/A
Total Liabilities	$6.2M0.0%	$6.2M-5.9%	$6.6M-16.0%	$7.8M-33.1%	$11.7M-1.2%	$11.8M-19.9%	$14.8M-61.6%	$38.5M-70.7%	$131.4M	N/A
Current Liabilities	$5.8M-3.0%	$6.0M-3.1%	$6.2M-6.9%	$6.7M-31.0%	$9.7M+7.3%	$9.0M-27.5%	$12.4M-64.4%	$34.9M-23.9%	$45.9M	N/A
Non-Current Liabilities	$351K+102.6%	$173K-53.3%	$372K-68.0%	$1.2M-42.9%	$2.0M-28.2%	$2.8M+19.7%	$2.4M-34.7%	$3.6M-95.8%	$85.6M	N/A
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A	N/A	$0-100.0%	$50.8M	N/A
Total Equity	$14.4M-4.3%	$15.1M-2.9%	$15.5M+7.7%	$14.4M-4.0%	$15.0M-27.8%	$20.8M-66.1%	$61.3M-5.0%	$64.5M+139.2%	$27.0M+736.2%	$3.2M
Retained Earnings	-$46.5Mn/m	-$49.9Mn/m	-$48.0Mn/m	-$51.9Mn/m	-$51.4Mn/m	-$48.3Mn/m	-$36.7Mn/m	-$43.6Mn/m	-$73.0M	N/A

Metric	Q1'256-K	Q4'246-K	Q1'246-K	Q4'2320-F	Q4'2220-F	Q4'2120-F	Q4'2020-F	Q4'1920-F
Total Assets	$20.7M	$20.6M-3.0%	N/A	$21.3M-3.8%	$22.1M-0.6%	$22.2M-16.7%	$26.7M-18.1%	$32.6M-57.1%
Current Assets	$11.0M	$11.0M-4.2%	N/A	$11.5M+5.0%	$11.0M+11.7%	$9.8M-20.1%	$12.3M-49.2%	$24.2M-63.1%
Cash & Equivalents	$5.0M	$5.0M+3.5%	N/A	$4.8M+34.4%	$3.6M+24.1%	$2.9M+35.8%	$2.1M-78.7%	$10.0M-43.5%
Inventory	$2.7M	$2.3M+3.8%	N/A	$2.2M-7.7%	$2.4M-8.6%	$2.6M-35.3%	$4.0M-17.5%	$4.9M+57.1%
Accounts Receivable	$3.1M	$3.7M+1.3%	N/A	$3.6M-12.8%	$4.2M+14.2%	$3.6M-11.5%	$4.1M-47.7%	$7.9M-0.1%
Goodwill	$2.7M	$2.3M-0.3%	N/A	$2.3M+0.1%	$2.3M+0.9%	$2.3M-0.6%	$2.3Mn/m	$0
Total Liabilities	$6.7M	$6.2M0.0%	N/A	$6.2M-5.9%	$6.6M-16.0%	$7.8M-33.1%	$11.7M-1.2%	$11.8M-19.9%
Current Liabilities	$6.4M	$5.8M-3.0%	N/A	$6.0M-3.1%	$6.2M-6.9%	$6.7M-31.0%	$9.7M+7.3%	$9.0M-27.5%
Non-Current Liabilities	$310K	$351K+102.6%	N/A	$173K-53.3%	$372K-68.0%	$1.2M-42.9%	$2.0M-28.2%	$2.8M+19.7%
Total Equity	$14.0M-7.7%	$14.4M-4.3%	$15.1M	$15.1M-2.9%	$15.5M+7.7%	$14.4M-4.0%	$15.0M-27.8%	$20.8M-66.1%
Retained Earnings	-$47.0M	-$46.5Mn/m	N/A	-$49.9Mn/m	-$48.0Mn/m	-$51.9Mn/m	-$51.4Mn/m	-$48.3Mn/m

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

MCUJF Cash Flow Statement

MCUJF quarterly cash flow statement

Metric	FY2420-F	FY2320-F	FY2220-F	FY2120-F	FY2020-F	FY1920-F	FY1820-F	FY1720-F	FY1620-F	FY1520-F
Operating Cash Flow	$956K-39.3%	$1.6M+16.6%	$1.4M-56.7%	$3.1Mn/m	-$1.8Mn/m	-$11.3M-2177.0%	$544K-96.9%	$17.5M+266.9%	$4.8M+4526.7%	$103K
Depreciation & Amortization	N/A	N/A	N/A	$2.5M+12.8%	$2.2M+39.7%	$1.6M+610.1%	$219K+179.9%	$78K	N/A	N/A
Investing Cash Flow	-$513Kn/m	-$205Kn/m	-$229Kn/m	-$2.1Mn/m	-$5.7M-121.5%	$26.4M+83.6%	$14.4M-66.7%	$43.3Mn/m	-$31.4Mn/m	-$164K
Financing Cash Flow	-$257Kn/m	-$225Kn/m	-$262Kn/m	-$247Kn/m	-$601Kn/m	-$23.3Mn/m	-$1.9Mn/m	-$66.3M-299.9%	$33.2M+1370.8%	$2.3M

Metric	Q1'256-K	Q4'246-K	Q1'246-K	Q4'2320-F	Q4'2220-F	Q4'2120-F	Q4'2020-F	Q4'1920-F
Operating Cash Flow	$456Kn/m	N/A	-$97K	N/A	N/A	N/A	N/A	N/A
Depreciation & Amortization	$79K+3.2%	N/A	$77K	N/A	N/A	N/A	N/A	N/A
Investing Cash Flow	-$377Kn/m	N/A	-$64K	N/A	N/A	N/A	N/A	N/A
Financing Cash Flow	-$62Kn/m	N/A	-$56K	N/A	N/A	N/A	N/A	N/A

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

MCUJF 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.

MCUJF quarterly financial ratios

Metric	FY2420-F	FY2320-F	FY2220-F	FY2120-F	FY2020-F	FY1920-F	FY1820-F	FY1720-F	FY1620-F	FY1520-F
Gross Margin	59.8%-4.7pp	64.5%-5.2pp	69.7%+11.2pp	58.5%+14.3pp	44.2%-19.8pp	63.9%-21.8pp	85.7%-1.5pp	87.2%-0.1pp	87.3%-2.5pp	89.8%
Operating Margin	N/A	N/A	N/A	N/A	N/A	N/A	-4.2%-17.7pp	13.5%-8.8pp	22.3%+0.9pp	21.4%
Net Margin	-4.7%-0.5pp	-4.3%-10.2pp	5.9%+9.3pp	-3.3%+55.6pp	-59.0%+39.1pp	-98.1%-111.6pp	13.5%	160.0%	92.1%+84.5pp	7.6%
Return on Equity	-5.0%-0.4pp	-4.6%-11.1pp	6.5%+10.5pp	-4.0%+31.8pp	-35.8%+37.7pp	-73.4%-78.1pp	4.7%-49.1pp	53.8%-20.8pp	74.6%+37.2pp	37.4%
Return on Assets	-3.5%-0.2pp	-3.3%-7.9pp	4.6%+7.1pp	-2.6%+17.5pp	-20.1%+26.7pp	-46.8%-50.6pp	3.8%-29.9pp	33.7%+21.1pp	12.6%	N/A
Current Ratio	1.890.0x	1.92+0.1x	1.77+0.3x	1.47+0.2x	1.27-1.4x	2.69-2.6x	5.29+2.7x	2.62+1.7x	0.90	N/A
Debt-to-Equity	N/A	N/A	N/A	N/A	N/A	N/A	N/A	0.00-1.9x	1.88	N/A
Liabilities-to-Equity	0.430.0x	0.410.0x	0.42-0.1x	0.54-0.2x	0.78+0.2x	0.57+0.3x	0.24-0.4x	0.60-4.3x	4.87	N/A
Asset Turnover	0.740.0x	0.770.0x	0.770.0x	0.77+0.4x	0.34-0.1x	0.48+0.2x	0.28+0.1x	0.21+0.1x	0.14	N/A

Metric	Q1'256-K	Q4'246-K	Q1'246-K	Q4'2320-F	Q4'2220-F	Q4'2120-F	Q4'2020-F	Q4'1920-F
Gross Margin	51.8%-16.6pp	N/A	68.4%	N/A	N/A	N/A	N/A	N/A
Net Margin	-12.7%-13.6pp	N/A	0.9%	N/A	N/A	N/A	N/A	N/A
Return on Equity	-3.5%-3.7pp	N/A	0.3%	N/A	N/A	N/A	N/A	N/A
Return on Assets	-2.3%	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Current Ratio	1.71	1.890.0x	N/A	1.92+0.1x	1.77+0.3x	1.47+0.2x	1.27-1.4x	2.69-2.6x
Liabilities-to-Equity	0.48	0.430.0x	N/A	0.410.0x	0.42-0.1x	0.54-0.2x	0.78+0.2x	0.57+0.3x
Asset Turnover	0.18	N/A	N/A	N/A	N/A	N/A	N/A	N/A

Not reported in any period shown, so not listed: Operating Margin, Debt-to-Equity, 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
MEDICURE INC MCUJF	FY2024	$15.2M	-$722K	-4.7%	$33.6M	—
ONE WORLD PRODUCTS INC OWPC	FY2024	$5K	N/A	N/A	$36K	—

Where MEDICURE INC Ranks

Frequently Asked Questions

What is MEDICURE INC's annual revenue?

MEDICURE INC (MCUJF) reported $15.2M in total revenue for fiscal year 2024. This represents a -7.4% 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 MEDICURE INC's revenue growing?

MEDICURE INC (MCUJF) revenue declined by 7.4% year-over-year, from $16.4M to $15.2M in fiscal year 2024.

Is MEDICURE INC profitable?

No, MEDICURE INC (MCUJF) reported a net loss of $722K in fiscal year 2024, with a net profit margin of -4.7%.

What is MEDICURE INC's gross margin?

MEDICURE INC (MCUJF) had a gross margin of 59.8% in fiscal year 2024, indicating the percentage of revenue retained after direct costs of goods sold.

What is MEDICURE INC's net profit margin?

MEDICURE INC (MCUJF) had a net profit margin of -4.7% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.

What is MEDICURE INC's return on equity (ROE)?

MEDICURE INC (MCUJF) has a return on equity of -5.0% for fiscal year 2024, measuring how efficiently the company generates profit from shareholder equity.

What is MEDICURE INC's operating cash flow?

MEDICURE INC (MCUJF) generated $956K in operating cash flow during fiscal year 2024, representing cash generated from core business activities.

What are MEDICURE INC's total assets?

MEDICURE INC (MCUJF) had $20.6M in total assets as of fiscal year 2024, including both current and long-term assets.

How much does MEDICURE INC spend on research and development?

MEDICURE INC (MCUJF) invested $2.1M in research and development during fiscal year 2024.

How many shares does MEDICURE INC have outstanding?

MEDICURE INC (MCUJF) had 10M shares outstanding as of fiscal year 2024.

What is MEDICURE INC's current ratio?

MEDICURE INC (MCUJF) had a current ratio of 1.89 as of fiscal year 2024, which is generally considered healthy.

What is MEDICURE INC's liabilities-to-equity ratio?

MEDICURE INC (MCUJF) had a liabilities-to-equity ratio of 0.43 as of fiscal year 2024, which is total liabilities divided by total shareholder equity. Total liabilities counts every obligation on the balance sheet (payables, deposits, insurance reserves and deferred taxes as well as borrowings), so this ratio usually runs well above debt-to-equity. No debt-to-equity ratio is shown for fiscal year 2024, because the filing data we hold for that year carries no long-term debt figure.

What is MEDICURE INC's return on assets (ROA)?

MEDICURE INC (MCUJF) had a return on assets of -3.5% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.

What is MEDICURE INC's P/E ratio?

MEDICURE INC (MCUJF) has no price-to-earnings ratio at the moment: net loss, so no earnings multiple (FY2024). The market capitalization is $33.6M as of Oct 23, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

What is MEDICURE INC's price-to-sales ratio?

MEDICURE INC (MCUJF) trades at 2.2x sales, its market capitalization divided by $15.2M revenue, FY2024. The market capitalization is $33.6M as of Oct 23, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

What is MEDICURE INC's Piotroski F-Score?

MEDICURE INC (MCUJF) has a Piotroski F-Score of 3 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 MEDICURE INC's earnings high quality?

MEDICURE INC (MCUJF) reported a net loss of $722K while generating $956K 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.