What is Annaly Capital's earnings per share (EPS)?

Annaly Capital (NLY) reported diluted earnings per share of $2.92 for fiscal year 2025. This represents a 80.2% 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.

Annaly Capital (NLY) Financials

NLY

FY2025 annual

Revenue Not reported for FY2025

Net Income $2.1B +102.8% YoY

EPS (Diluted) $2.92 +80.2% YoY

Operating Cash Flow $692.9M -79.1% YoY

Market Cap $17.0B as of Sep 9, 2026

Price / Sales n/m no revenue reported

Price / Earnings 8.3x on $2.1B net income, FY2025

Price / Book 1.0x on $16.9B 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 9, 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 29, 2026 Currency USD FYE December

Newest figures come from the 10-Q for Q2 FY2026, filed Jul 29, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the NLY SEC filings page.

This page shows Annaly Capital (NLY) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 15 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 NLY FY2025 2026-08-29

The dominant mechanic is a highly leveraged asset base, with expansion funded chiefly by external financing rather than retained cash generation.

In FY2025, net income was $2.05B while operating cash flow was only $693M. Compared with FY2024, when operating cash flow was $3.31B> against net income of $1.01B, that reversal means reported earnings and cash generation were shaped by different balance-sheet movements.

Assets expanded from $93.2B in FY2023 to $135.6B in FY2025, creating a much larger balance sheet without a meaningful reduction in leverage. Liabilities rose from $81.9B to $119.4B while debt-to-equity remained elevated at roughly 7.4x.

In FY2025, investing cash flow was -$27.4B and financing cash flow was $27.2B. Against operating cash flow of $693M, that near-offset indicates balance-sheet expansion was funded chiefly through financing rather than internally generated cash.

Financial Health Signals

Financial health score not available

Annaly Capital 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

Annaly Capital passes 3 of 5 computable financial strength tests (4 of the nine could not be computed from available data). 3 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution).

Earnings Quality Low Quality

0.34x

For every $1 of reported earnings, Annaly Capital generates $0.34 in operating cash flow ($692.9M OCF vs $2.1B net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.

Key Financial Metrics

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Earnings & Revenue

Net Income

$822.7M

YoY+1340.8%

QoQ+191.1%

Annaly Capital reported $822.7M in net income in Q2 2026. This represents an increase of 1340.8% from the same quarter a year earlier. Against the prior quarter it is up 191.1%.

EPS (Diluted)

$1.06

QoQ+221.2%

Annaly Capital earned $1.06 per diluted share (EPS) in Q2 2026. Against the prior quarter it is up 221.2%.

Revenue

Not reported for Q2 2026.

EBITDA

Not reported for Q2 2026.

Cash & Balance Sheet

Cash & Debt

$2.9B

YoY+41.4%

QoQ+52.3%

5Y CAGR+16.1%

10Y CAGR+0.6%

Annaly Capital held $2.9B in cash as of Q2 2026; long-term debt is not reported for that period.

Dividends Per Share

$0.75

QoQ+7.1%

5Y CAGR+27.8%

10Y CAGR+9.6%

Annaly Capital paid $0.75 per share in dividends in Q2 2026. Against the prior quarter it is up 7.1%.

Shares Outstanding

754M

QoQ+2.9%

5Y CAGR-12.2%

10Y CAGR-2.7%

Annaly Capital had 754M shares outstanding in Q2 2026. Against the prior quarter it is up 2.9%.

Free Cash Flow

Not reported for Q2 2026.

Margins & Returns

Return on Equity

4.9%

YoY+4.4pp

QoQ+3.1pp

Annaly Capital's ROE was 4.9% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is up 4.4 percentage points from the same quarter a year earlier. Against the prior quarter it is up 3.1 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

None of these metrics is reported for Q2 2026.

NLY 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.

NLY 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	FY1110-K
SG&A Expenses	N/A	$199.6M+16.5%	$171.4M+5.4%	$162.6M-0.1%	$162.7M-12.5%	$186.0M-16.3%	$222.2M-18.2%	$271.8M-17.6%	$329.9M+47.2%	$224.1M-10.5%	$250.4M+25.0%	$200.2M-4.3%	$209.3M-9.8%	$232.1M-1.5%	$235.6M-0.8%	$237.3M
Interest Expense	N/A	$4.8B+5.0%	$4.6B+19.5%	$3.8B+193.4%	$1.3B+425.5%	$249.2M-72.3%	$899.1M-67.7%	$2.8B+46.7%	$1.9B+88.2%	$1.0B+53.3%	$657.8M+39.5%	$471.6M-8.0%	$512.7M-17.9%	$624.7M-6.4%	$667.2M+38.9%	$480.3M
Income Tax	N/A	-$6.9M-145.0%	$15.3M-61.3%	$39.4M-13.5%	$45.6M+874.8%	$4.7M+116.4%	-$28.4M-162.3%	-$10.8M-356.2%	-$2.4M-134.0%	$7.0M+537.7%	-$1.6M+18.4%	-$2.0M-136.7%	$5.3M-35.2%	$8.2M-77.1%	$35.9M-39.2%	$59.1M
Net Income	N/A	$2.1B+102.8%	$1.0B+161.8%	-$1.6B-194.9%	$1.7B-28.0%	$2.4B+368.9%	-$891.2M+58.8%	-$2.2B-4075.3%	$54.4M-96.5%	$1.6B+9.5%	$1.4B+207.3%	$466.6M+155.4%	-$842.1M-122.6%	$3.7B+114.9%	$1.7B+403.9%	$344.5M
EPS (Basic)	N/A	$2.92+80.2%	$1.62+144.9%	-$3.61-191.9%	$3.93-38.6%	$6.40+319.2%	-$2.92-82.5%	-$1.60-2566.7%	-$0.06-104.4%	$1.37-1.4%	$1.39+231.0%	$0.42+143.8%	-$0.96-124.9%	$3.86+121.8%	$1.74+370.3%	$0.37
EPS (Diluted)	$4.07	$2.92+80.2%	$1.62+144.9%	-$3.61-192.1%	$3.92	$6.39+318.8%	-$2.92	-$1.60-2566.7%	-$0.06-104.4%	$1.37-1.4%	$1.39+231.0%	$0.42+143.8%	-$0.96-125.7%	$3.74+118.7%	$1.71+362.2%	$0.37
Diluted Shares (Avg)	N/A	641M+22.6%	523M+5.7%	495M+20.1%	412M	357M+1.0%	354M	1.43B+18.6%	1.21B+13.4%	1.07B+9.9%	970M+2.4%	947M0.0%	948M-4.8%	996M-1.0%	1.01B+15.0%	875M

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
SG&A Expenses	$58.2M+16.3%	$52.6M+9.4%	N/A	$50.3M+14.6%	$50.0M+11.4%	$48.1M+24.6%	N/A	$43.9M+10.1%
Interest Expense	$1.3B+15.6%	$1.3B+16.0%	N/A	$1.3B+3.4%	$1.1B+2.0%	$1.1B-0.3%	N/A	$1.2B+16.2%
Income Tax	$6.9M+1468.0%	-$1.5M-118.4%	N/A	-$7.8M-27.5%	$440K-96.3%	$8.3M+976.7%	N/A	-$6.1M-149.5%
Net Income	$822.7M+1340.8%	$282.7M+127.5%	N/A	$832.4M+1152.8%	$57.1M+702.1%	$124.2M-73.2%	N/A	$66.4M+111.8%
EPS (Basic)	$1.06+3433.3%	$0.33+120.0%	$1.47+79.3%	$1.21+2320.0%	$0.03+133.3%	$0.15-82.4%	$0.82+193.2%	$0.05+104.1%
EPS (Diluted)	$1.06	$0.33+120.0%	$1.48+80.5%	$1.20	$0.03	$0.15	$0.82+193.2%	$0.05
Diluted Shares (Avg)	740M	724M+23.1%	N/A	658M	621M	588M	N/A	517M

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

NLY Balance Sheet

NLY 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	FY1110-K
Total Assets	$135.6B+31.0%	$103.6B+11.1%	$93.2B+13.9%	$81.9B+6.6%	$76.8B-13.2%	$88.5B-32.1%	$130.3B+23.2%	$105.8B+4.0%	$101.8B+15.8%	$87.9B+16.9%	$75.2B-14.9%	$88.4B+7.9%	$81.9B-38.6%	$133.5B+21.7%	$109.6B
Cash & Equivalents	$2.0B+36.9%	$1.5B+5.4%	$1.4B-10.4%	$1.6B+17.5%	$1.3B+7.9%	$1.2B-32.8%	$1.9B+6.6%	$1.7B+145.7%	$706.6M-54.1%	$1.5B-13.0%	$1.8B+1.6%	$1.7B+215.2%	$552.4M-10.3%	$615.8M-38.1%	$994.2M
Short-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Long-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Goodwill	N/A	N/A	N/A	N/A	$0-100.0%	$71.8M0.0%	$71.8M0.0%	$71.8M0.0%	$71.8M0.0%	$71.8M0.0%	$71.8M-24.2%	$94.8M0.0%	$94.8M+71.0%	$55.4M+31.9%	$42.0M
Total Liabilities	$119.4B+31.5%	$90.9B+11.0%	$81.9B+16.2%	$70.5B+10.9%	$63.6B-14.6%	$74.4B-35.0%	$114.5B+24.9%	$91.7B+5.5%	$86.9B+15.3%	$75.3B+19.0%	$63.3B-15.6%	$75.0B+7.9%	$69.5B-40.9%	$117.5B+25.2%	$93.8B
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	$429.6M-12.4%	$490.6M	N/A	$312.5M-0.8%	$314.9M-7.0%	$338.4M	N/A	N/A	N/A	N/A
Total Equity	$16.1B+27.6%	$12.6B+12.0%	$11.3B-0.1%	$11.3B-14.4%	$13.2B-6.0%	$14.0B-11.3%	$15.8B+11.9%	$14.1B-5.1%	$14.9B+18.3%	$12.6B+5.7%	$11.9B-10.7%	$13.3B+7.4%	$12.4B-22.1%	$15.9B+1.0%	$15.8B
Retained Earnings	-$13.2B+0.1%	-$13.2B-4.4%	-$12.6B-32.3%	-$9.5B+1.1%	-$9.7B+9.5%	-$10.7B-28.4%	-$8.3B-84.9%	-$4.5B-51.7%	-$3.0B+5.6%	-$3.1B+5.7%	-$3.3B-28.6%	-$2.6B-383.9%	-$534.3M+80.9%	-$2.8B-11.5%	-$2.5B

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	$143.7B+28.2%	$138.5B+31.8%	$135.6B+31.0%	$125.9B+24.0%	$112.1B+19.7%	$105.1B+14.9%	$103.6B+11.1%	$101.5B+13.2%
Cash & Equivalents	$2.9B+41.4%	$1.9B+4.3%	$2.0B+36.9%	$2.1B+34.4%	$2.1B+29.7%	$1.8B+10.1%	$1.5B+5.4%	$1.6B+25.7%
Short-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Long-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Total Liabilities	$126.8B+28.5%	$122.2B+32.8%	$119.4B+31.5%	$110.9B+24.6%	$98.7B+19.7%	$92.0B+15.1%	$90.9B+11.0%	$89.0B+12.7%
Total Equity	$16.9B+26.5%	$16.3B+25.2%	$16.1B+27.6%	$14.9B+19.8%	$13.4B+19.7%	$13.0B+13.9%	$12.6B+12.0%	$12.4B+17.8%
Retained Earnings	-$13.2B+5.2%	-$13.4B+0.6%	-$13.2B+0.1%	-$13.6B-2.9%	-$13.9B-8.1%	-$13.5B-7.9%	-$13.2B-4.4%	-$13.2B-11.7%

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

NLY Cash Flow Statement

NLY 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	FY1110-K
Operating Cash Flow	$886.4M	$692.9M-79.1%	$3.3B+39.9%	$2.4B-55.9%	$5.4B+74.6%	$3.1B+482.8%	$528.0M+144.0%	-$1.2B-145.7%	$2.6B+60.6%	$1.6B+3.2%	$1.6B+143.4%	-$3.6B-159.5%	$6.1B+147.5%	-$12.9B-268.8%	$7.6B+215.7%	$2.4B
Depreciation & Amortization	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	$26.6M-23.6%	$34.8M+74.1%	$20.0M+334.6%	$4.6M	N/A	N/A	N/A
Investing Cash Flow	-$32.3B	-$27.4B-82.6%	-$15.0B-78.1%	-$8.4B+42.1%	-$14.5B-396.5%	$4.9B-87.9%	$40.4B+295.5%	-$20.6B-2172.3%	-$908.4M+93.8%	-$14.7B-611.2%	-$2.1B-117.0%	$12.1B	N/A	N/A	N/A	N/A
Financing Cash Flow	$32.3B	$27.2B+131.7%	$11.8B+99.7%	$5.9B-37.3%	$9.4B+219.2%	-$7.9B+81.0%	-$41.5B-289.0%	$22.0B+3307.9%	-$684.4M-105.6%	$12.2B+4745.8%	$251.8M+103.0%	-$8.5B	N/A	N/A	N/A	N/A
Dividends Paid	$2.1B	$1.9B+26.0%	$1.5B-1.6%	$1.5B-0.1%	$1.5B+11.7%	$1.4B-7.9%	$1.5B-12.6%	$1.7B+9.6%	$1.5B+13.9%	$1.4B+10.8%	$1.2B+1.0%	$1.2B0.0%	$1.2B-26.3%	$1.6B-23.7%	$2.1B+5.3%	$2.0B
Share Buybacks	N/A	N/A	N/A	N/A	$0	$0-100.0%	$209.4M-6.3%	$223.6M	$0	$0-100.0%	$102.7M-10.1%	$114.3M	N/A	$141.1M-44.8%	$255.9M	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	$1.6B+796.0%	-$1.4B-796.8%	$644.3M-77.1%	$24.1M+101.4%	$180.7M-62.1%	-$156.3M-109.2%	$2.8B+642.0%	-$1.7B-189.4%
Investing Cash Flow	-$6.2B+14.9%	-$4.4B-364.3%	-$9.9B-58.3%	-$11.8B-166.9%	-$7.3B-76.7%	$1.7B+1098.7%	-$6.3B-619.4%	-$4.4B+17.6%
Financing Cash Flow	$5.6B-23.9%	$5.7B+588.4%	$9.2B+172.7%	$11.8B+94.8%	$7.4B+105.3%	-$1.2B+9.1%	$3.4B+338.8%	$6.1B+73.3%
Dividends Paid	$562.9M+25.2%	$535.7M+29.6%	$523.0M+30.2%	$476.7M+31.4%	$449.5M+38.0%	$413.2M+14.1%	$401.6M+11.9%	$362.7M+12.8%

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

NLY 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.

NLY 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	FY1110-K
Return on Equity	12.8%+4.7pp	8.0%+22.6pp	-14.6%-29.9pp	15.3%-2.9pp	18.2%+24.6pp	-6.4%+7.3pp	-13.7%-14.1pp	0.4%-10.2pp	10.6%-0.8pp	11.4%+7.5pp	3.9%+10.2pp	-6.3%-36.4pp	30.1%+19.2pp	10.9%+8.7pp	2.2%
Return on Assets	1.5%+0.5pp	1.0%+2.7pp	-1.8%-3.9pp	2.1%-1.0pp	3.1%+4.1pp	-1.0%+0.7pp	-1.7%-1.7pp	0.1%-1.5pp	1.5%-0.1pp	1.6%+1.0pp	0.6%+1.6pp	-0.9%-5.5pp	4.5%+3.3pp	1.3%+1.0pp	0.3%
Debt-to-Equity	7.42+0.2x	7.21-0.1x	7.27+1.0x	6.25+1.4x	4.83+4.8x	0.030.0x	0.03-6.5x	6.50+6.5x	0.020.0x	0.030.0x	0.03-5.6x	5.630.0x	5.60-1.8x	7.38+1.4x	5.95

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	4.9%+4.4pp	1.7%+0.8pp	N/A	5.6%+5.1pp	0.4%+0.5pp	1.0%-3.1pp	N/A	0.5%+5.8pp
Return on Assets	0.6%+0.5pp	0.2%+0.1pp	N/A	0.7%+0.6pp	0.1%+0.1pp	0.1%-0.4pp	N/A	0.1%+0.7pp
Debt-to-Equity	7.49+0.1x	7.51+0.4x	7.42+0.2x	7.44+0.3x	7.370.0x	7.08+0.1x	7.21-0.1x	7.15-0.3x

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
Annaly Capital NLY	FY2025	N/A	$2.1B	N/A	$17.0B	—
Agnc Invt Corp AGNC	FY2025	N/A	$1.7B	N/A	$12.7B	—
Starwood Prpty STWD	FY2025	$1.8B	$411.5M	22.3%	$5.9B	26/100
Rithm Capital RITM	FY2025	$4.6B	$567.2M	12.4%	$5.6B	21/100
Agnc Invt AGNCN	FY2025	N/A	$1.7B	N/A	N/A	—
Blackstone Mtg Tr Inc BXMT	FY2025	$920.3M	$109.6M	11.9%	$2.3B	16/100

Where Annaly Capital Ranks

Frequently Asked Questions

Is Annaly Capital profitable?

Yes, Annaly Capital (NLY) reported a net income of $2.1B in fiscal year 2025.

Does Annaly Capital pay dividends?

Yes, Annaly Capital (NLY) paid $2.80 per share in dividends during fiscal year 2025.

What is Annaly Capital's return on equity (ROE)?

Annaly Capital (NLY) has a return on equity of 12.8% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Annaly Capital's operating cash flow?

Annaly Capital (NLY) generated $692.9M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Annaly Capital's total assets?

Annaly Capital (NLY) had $135.6B in total assets as of fiscal year 2025, including both current and long-term assets.

How many shares does Annaly Capital have outstanding?

Annaly Capital (NLY) had 718M shares outstanding as of fiscal year 2025.

What is Annaly Capital's debt-to-equity ratio?

Annaly Capital (NLY) had a debt-to-equity ratio of 7.42 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Annaly Capital's return on assets (ROA)?

Annaly Capital (NLY) had a return on assets of 1.5% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Annaly Capital's P/E ratio?

Annaly Capital (NLY) trades at 8.3x earnings, its market capitalization divided by net income of $2.1B net income, FY2025. The market capitalization is $17.0B as of Sep 9, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

What is Annaly Capital's price-to-sales ratio?

Annaly Capital (NLY) has no price-to-sales ratio at the moment: no revenue reported. The market capitalization is $17.0B as of Sep 9, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

What is Annaly Capital's Piotroski F-Score?

Annaly Capital (NLY) 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 Annaly Capital's earnings high quality?

Annaly Capital (NLY) has an earnings quality ratio of 0.34x, considered low quality (accrual-driven). 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.