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

NextCure, Inc. (NXTC) reported diluted earnings per share of -$19.65 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.

NextCure, Inc. (NXTC) Financials

NXTC

FY2025 annual

Revenue Not reported for FY2025

Net Income -$55.8M -0.3% YoY

EPS (Diluted) -$19.65 YoY not available

Operating Cash Flow -$49.6M -21.6% YoY

Market Cap $23.3M as of Oct 3, 2026

Price / Sales n/m no revenue reported

Price / Earnings n/m net loss, so no earnings multiple, FY2025

Price / Book 1.9x on $12.1M 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 3, 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 Oct 1, 2026 Currency USD FYE December

Newest figures come from the S-4/A for Q2 FY2026, filed Oct 1, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the NXTC SEC filings page.

This page shows NextCure, Inc. (NXTC) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 8 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 NXTC FY2025 2026-10-03

NextCure remains a development-stage business, consuming capital each year while its shrinking equity base increases balance-sheet pressure.

From FY2021 to FY2025, the net loss narrowed from $69.4M to $55.8M, yet operating cash flow improved only from -$57.3M to -$49.6M; accounting progress has not translated into comparable cash improvement. In FY2025, the gap between the net loss and operating cash flow was $6.2M, versus $14.9M in FY2024, meaning the latest accounting loss was closer to the cash outflow.

R&D was $44.9M in FY2025 against $12.7M of SG&A, so the cost base remains concentrated in development spending rather than commercial overhead. That structure explains why lower operating losses do not yet represent a revenue-backed operating model.

Total assets contracted from $242.4M in FY2021 to $50.2M in FY2025, indicating that the balance sheet is funding a much smaller operating base. Liabilities remained about $15M across FY2024-FY2025 while debt-to-equity rose to 0.4x, showing that shrinking equity—not a large new debt load—is driving the leverage change. The supplied liquidity measure equaled 10.1 months of the latest annual operating outflow, framing reported cash and investments against current spending rather than proving future funding.

Financial Health Signals

Financial health score not available

NextCure, 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

2/6

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

Earnings Quality No Cash Backing

N/A

NextCure, Inc. reported a net loss of $55.8M while operations used $49.6M of cash. With neither figure positive, the ratio between the two carries no quality signal.

Key Financial Metrics

Export CSV

Earnings & Revenue

Net Income

-$14.9M

YoY+44.4%

QoQ-52.0%

NextCure, Inc. reported -$14.9M in net income in Q2 2026. This represents an increase of 44.4% from the same quarter a year earlier. Against the prior quarter it is down 52.0%.

EPS (Diluted)

-$2.80

QoQ-49.7%

NextCure, Inc. earned -$2.80 per diluted share (EPS) in Q2 2026. Against the prior quarter it is down 49.7%.

Revenue

Not reported for Q2 2026.

EBITDA

Not reported for Q2 2026.

Cash & Balance Sheet

Cash & Debt

$15.3M

YoY+211.9%

QoQ+0.6%

5Y CAGR-15.3%

NextCure, Inc. held $15.3M in cash as of Q2 2026; long-term debt is not reported for that period.

Shares Outstanding

QoQ+26.7%

5Y CAGR-30.2%

NextCure, Inc. had 5M shares outstanding in Q2 2026. Against the prior quarter it is up 26.7%.

Free Cash Flow

Not reported for Q2 2026.

Dividends Per Share

Not reported for Q2 2026.

Margins & Returns

Return on Equity

-122.6%

YoY-32.1pp

QoQ-85.9pp

NextCure, Inc.'s ROE was -122.6% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is down 32.1 percentage points from the same quarter a year earlier. Against the prior quarter it is down 85.9 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

R&D Spending

$7.4M

YoY-69.2%

QoQ+8.6%

NextCure, Inc. invested $7.4M in research and development in Q2 2026. This represents a decrease of 69.2% from the same quarter a year earlier. Against the prior quarter it is up 8.6%.

Share Buybacks

Not reported for Q2 2026.

Capital Expenditures

Not reported for Q2 2026.

NXTC 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.

NXTC quarterly income statement

Metric	TTM	FY25S-4/A	FY24S-4/A	FY23DEF 14A	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K
Revenue	N/A	N/A	N/A	N/A	N/A	N/A	$22.4M+252.6%	$6.3M	N/A
R&D Expenses	N/A	$44.9M+8.3%	$41.5M-13.4%	$47.9M-11.6%	$54.2M+8.0%	$50.2M+7.8%	$46.6M+36.1%	$34.2M+72.9%	$19.8M
SG&A Expenses	N/A	$12.7M-19.2%	$15.7M-20.2%	$19.7M-9.2%	$21.7M+5.5%	$20.6M+20.7%	$17.0M+77.4%	$9.6M+182.0%	$3.4M
Operating Income	N/A	-$57.6M+3.6%	-$59.7M+11.7%	-$67.6M+10.9%	-$75.9M-7.3%	-$70.8M-71.7%	-$41.2M-10.0%	-$37.5M-61.6%	-$23.2M
EBITDA	N/A	-$55.4M+2.5%	-$56.8M+11.1%	-$63.9M+11.0%	-$71.8M-8.0%	-$66.5M-75.7%	-$37.8M-8.7%	-$34.8M-61.7%	-$21.5M
Interest Expense	N/A	N/A	N/A	N/A	N/A	N/A	$183K-12.4%	$209K+736.0%	$25K
Income Tax	N/A	$0	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Income	N/A	-$55.8M-0.3%	-$55.7M+11.3%	-$62.7M+16.1%	-$74.7M-7.7%	-$69.4M-89.6%	-$36.6M-8.5%	-$33.7M-48.0%	-$22.8M
EPS (Basic)	N/A	-$19.65+17.7%	-$23.88-961.3%	-$2.25+16.4%	-$2.69-7.2%	-$2.51-88.7%	-$1.33	N/A	N/A
EPS (Diluted)	—	-$19.65	-$23.88	-$2.25+16.4%	-$2.69-7.2%	-$2.51-88.7%	-$1.33	N/A	N/A
Diluted Shares (Avg)	N/A	3M	2M	28M+0.3%	28M+0.5%	28M+0.3%	28M	N/A	N/A

Metric	Q2'26S-4/A	Q1'26S-4/A	Q4'25S-4/A	Q3'2510-Q	Q2'25S-4/A	Q1'25S-4/A	Q4'24S-4/A	Q3'2410-Q
R&D Expenses	$7.4M-69.2%	$6.8M-13.4%	N/A	$6.1M-30.0%	$24.1M+94.0%	$7.9M-30.7%	N/A	$8.8M-20.3%
SG&A Expenses	$2.6M-19.0%	$3.3M-12.2%	N/A	$2.8M-24.6%	$3.2M-21.5%	$3.7M-14.6%	N/A	$3.7M-19.2%
Operating Income	-$15.1M+44.7%	-$10.1M+13.1%	N/A	-$8.9M+28.4%	-$27.3M-65.5%	-$11.6M+36.5%	N/A	-$12.5M+20.0%
Income Tax	$0	$0	N/A	$0	$0	$0	N/A	$0
Net Income	-$14.9M+44.4%	-$9.8M+10.8%	N/A	-$8.6M+25.3%	-$26.8M-74.0%	-$11.0M+35.8%	N/A	-$11.5M+19.3%
EPS (Basic)	-$2.80+75.2%	-$1.87+60.2%	-$0.81-97.6%	-$3.22+34.9%	-$11.29-70.8%	-$4.70-670.5%	-$0.41+21.2%	-$4.95-870.6%
EPS (Diluted)	-$2.80	-$1.87	-$0.81	-$3.22	-$11.29	-$4.70	-$0.41+21.2%	-$4.95
Diluted Shares (Avg)	5M	5M	N/A	3M	2M	2M	N/A	2M

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

NXTC Balance Sheet

NXTC quarterly balance sheet

Metric	FY25S-4/A	FY24S-4/A	FY23DEF 14A	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K
Total Assets	$50.2M-37.9%	$80.9M-36.8%	$128.0M-30.5%	$184.2M-24.0%	$242.4M-21.0%	$306.6M-13.9%	$356.2M+141.3%	$147.6M
Current Assets	$43.7M-39.1%	$71.8M-36.3%	$112.7M-31.3%	$164.0M-28.0%	$227.8M-20.9%	$288.0M-15.3%	$340.0M+150.4%	$135.8M
Cash & Equivalents	$26.0M-6.3%	$27.7M+111.9%	$13.1M-50.9%	$26.6M+115.9%	$12.3M-62.4%	$32.8M-3.9%	$34.1M-74.8%	$135.2M
Short-Term Investments	$15.8M-61.3%	$40.9M-57.1%	$95.2M-28.6%	$133.3M-35.7%	$207.3M-17.3%	$250.7M-16.6%	$300.5M	$0
Long-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Total Liabilities	$15.2M-1.0%	$15.4M+13.0%	$13.6M-18.1%	$16.6M+84.8%	$9.0M-30.4%	$12.9M-62.7%	$34.7M-82.2%	$194.6M
Current Liabilities	$10.6M+10.4%	$9.6M+39.1%	$6.9M-24.6%	$9.1M+38.1%	$6.6M-36.0%	$10.3M-31.4%	$15.0M+46.1%	$10.3M
Non-Current Liabilities	$4.7M-19.6%	$5.8M-13.7%	$6.7M-10.3%	$7.5M+213.7%	$2.4M-7.9%	$2.6M-86.8%	$19.6M-89.3%	$184.3M
Long-Term Debt	N/A	N/A	N/A	$0	$0-100.0%	$1.8M-45.8%	$3.3M+4465.8%	$73K
Total Equity	$34.9M-46.6%	$65.5M-42.8%	$114.4M-31.7%	$167.5M-28.2%	$233.4M-20.5%	$293.7M-8.6%	$321.5M+784.8%	-$46.9M
Retained Earnings	-$436.0M-14.7%	-$380.1M-17.2%	-$324.5M-24.0%	-$261.8M-40.0%	-$187.0M-59.0%	-$117.6M-45.2%	-$81.0M-71.3%	-$47.3M

Metric	Q2'26S-4/A	Q1'26S-4/A	Q4'25S-4/A	Q3'2510-Q	Q2'25S-4/A	Q1'25S-4/A	Q4'24S-4/A	Q3'2410-Q
Total Assets	$22.6M-52.6%	$38.0M-43.4%	$50.2M-37.9%	$39.6M-56.2%	$47.7M-53.5%	$67.1M-41.7%	$80.9M-36.8%	$90.3M-35.4%
Current Assets	$22.3M-44.4%	$31.7M-46.1%	$43.7M-39.1%	$32.6M-58.5%	$40.0M-55.8%	$58.9M-42.6%	$71.8M-36.3%	$78.7M-35.9%
Cash & Equivalents	$15.3M+211.9%	$15.2M-30.5%	$26.0M-6.3%	$7.3M-73.6%	$4.9M-76.5%	$21.8M+18.9%	$27.7M+111.9%	$27.7M+41.9%
Short-Term Investments	$4.8M-84.1%	$14.6M-57.2%	$15.8M-61.3%	$21.8M-54.2%	$30.4M-53.6%	$34.0M-56.2%	$40.9M-57.1%	$47.6M-51.8%
Long-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Total Liabilities	$10.5M-34.7%	$11.3M-0.2%	$15.2M-1.0%	$16.0M+8.2%	$16.0M-6.4%	$11.3M-30.0%	$15.4M+13.0%	$14.8M+9.4%
Current Liabilities	$6.4M-40.5%	$6.9M+20.1%	$10.6M+10.4%	$11.0M+26.8%	$10.8M-0.5%	$5.7M-40.1%	$9.6M+39.1%	$8.7M+32.4%
Non-Current Liabilities	$4.1M-22.9%	$4.4M-21.1%	$4.7M-19.6%	$5.0M-18.2%	$5.3M-16.7%	$5.5M-15.1%	$5.8M-13.7%	$6.1M-12.3%
Total Equity	$12.1M-59.0%	$26.7M-52.2%	$34.9M-46.6%	$23.6M-68.7%	$29.6M-65.3%	$55.9M-43.6%	$65.5M-42.8%	$75.6M-40.2%
Retained Earnings	-$460.7M-10.2%	-$445.8M-14.0%	-$436.0M-14.7%	-$426.5M-15.7%	-$417.9M-17.1%	-$391.1M-14.5%	-$380.1M-17.2%	-$368.5M-18.9%

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

NXTC Cash Flow Statement

NXTC quarterly cash flow statement

Metric	TTM	FY25S-4/A	FY24S-4/A	FY23DEF 14A	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K
Operating Cash Flow	-$37.0M	-$49.6M-21.6%	-$40.8M+23.0%	-$53.0M+1.7%	-$53.9M+5.9%	-$57.3M-27.4%	-$45.0M-26.2%	-$35.6M-545.7%	$8.0M
Depreciation & Amortization	N/A	$2.2M-24.1%	$2.9M-21.6%	$3.7M-9.8%	$4.1M-4.7%	$4.3M+26.5%	$3.4M+26.5%	$2.7M+60.3%	$1.7M
Stock-Based Compensation	N/A	$3.0M-52.9%	$6.3M-22.6%	$8.2M-13.9%	$9.5M-7.6%	$10.3M+30.0%	$7.9M+319.5%	$1.9M+617.1%	$263K
Capital Expenditures	N/A	N/A	$474K-42.2%	$820K-61.2%	$2.1M-10.3%	$2.4M-66.9%	$7.1M+111.6%	$3.4M+10.1%	$3.1M
Free Cash Flow	N/A	N/A	-$41.3M+23.3%	-$53.8M+3.9%	-$56.0M+6.1%	-$59.6M-14.5%	-$52.1M-33.6%	-$39.0M-891.1%	$4.9M
Investing Cash Flow	$25.8M	$25.6M-53.8%	$55.3M+40.8%	$39.3M-42.2%	$68.0M+85.7%	$36.6M-15.9%	$43.5M+114.3%	-$303.9M-9822.4%	-$3.1M
Financing Cash Flow	$21.6M	$22.3M+15394.4%	$144K-6.5%	$154K-23.0%	$200K+106.1%	-$3.3M-130.7%	-$1.4M-100.6%	$243.0M+100.2%	$121.4M

Metric	Q2'26S-4/A	Q1'26S-4/A	Q4'25S-4/A	Q3'2510-Q	Q2'25S-4/A	Q1'25S-4/A	Q4'24S-4/A	Q3'2410-Q
Operating Cash Flow	-$9.7M+57.2%	-$13.4M-2.8%	-$7.6M-9.6%	-$6.3M+45.3%	-$22.7M-132.3%	-$13.0M-3.1%	-$7.0M+34.7%	-$11.5M+10.4%
Stock-Based Compensation	$304K-48.2%	$344K-74.8%	N/A	$600K-60.8%	$587K-63.2%	$1.4M-19.5%	N/A	$1.5M-23.6%
Capital Expenditures	N/A	N/A	N/A	N/A	N/A	N/A	-$34K+161.5%	$170K-39.1%
Free Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	-$7.0M+34.4%	-$11.6M+11.0%
Investing Cash Flow	$9.8M+160.3%	$1.3M-81.7%	$6.0M-13.7%	$8.7M-52.5%	$3.8M-69.1%	$7.1M-60.3%	$7.0M+67.2%	$18.3M+78.1%
Financing Cash Flow	$22K	$1.2M	$20.3M+54745.9%	$0	N/A	N/A	$37K-47.9%	$0

Not reported in any period shown, so not listed: Depreciation & Amortization, Dividends Paid, Share Buybacks.

NXTC 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.

NXTC quarterly financial ratios

Metric	FY25S-4/A	FY24S-4/A	FY23DEF 14A	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K
Operating Margin	N/A	N/A	N/A	N/A	N/A	-184.2%	-590.5%	N/A
Net Margin	N/A	N/A	N/A	N/A	N/A	-163.6%	-531.5%	N/A
Return on Equity	-159.8%-74.8pp	-85.0%-30.2pp	-54.8%-10.2pp	-44.6%-14.9pp	-29.7%-17.3pp	-12.5%-2.0pp	-10.5%	N/A
Return on Assets	-111.3%-42.4pp	-68.8%-19.8pp	-49.0%-8.4pp	-40.6%-11.9pp	-28.6%-16.7pp	-11.9%-2.5pp	-9.5%+6.0pp	-15.4%
Current Ratio	4.14-3.4x	7.50-8.9x	16.38-1.6x	17.97-16.5x	34.48+6.6x	27.89+5.3x	22.60+9.4x	13.19
Debt-to-Equity	0.44+0.2x	0.23+0.1x	0.12+0.1x	0.000.0x	0.000.0x	0.010.0x	0.01	N/A
Asset Turnover	N/A	N/A	N/A	N/A	N/A	0.07+0.1x	0.02	N/A
FCF Margin	N/A	N/A	N/A	N/A	N/A	-232.8%	-614.4%	N/A

Metric	Q2'26S-4/A	Q1'26S-4/A	Q4'25S-4/A	Q3'2510-Q	Q2'25S-4/A	Q1'25S-4/A	Q4'24S-4/A	Q3'2410-Q
Return on Equity	-122.6%-32.1pp	-36.7%-17.0pp	N/A	-36.5%-21.2pp	-90.4%-72.4pp	-19.7%-2.4pp	N/A	-15.3%-4.0pp
Return on Assets	-65.8%-9.6pp	-25.8%-9.4pp	N/A	-21.8%-9.0pp	-56.2%-41.2pp	-16.4%-1.5pp	N/A	-12.8%-2.6pp
Current Ratio	3.47-0.2x	4.61-5.7x	4.14-3.4x	2.97-6.1x	3.71-4.6x	10.26-0.4x	7.50-8.9x	9.07-9.7x
Debt-to-Equity	0.86+0.3x	0.42+0.2x	0.44+0.2x	0.68+0.5x	0.54+0.3x	0.200.0x	0.23+0.1x	0.20+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
NextCure, Inc. NXTC	FY2025	N/A	-$55.8M	N/A	$23.3M	—
Briacell Therapeutics Corp. BCTX	FY2025	N/A	-$26.3M	N/A	$35.1M	—
BioVie, Inc. BIVI	FY2026	N/A	-$22.1M	N/A	$12.7M	—
Apollomics Inc. APLM	FY2025	$8.5M	-$10.9M	N/A	$67.8M	30/100
CARISMA THERAPEUTICS INC CARM	FY2024	$19.6M	-$60.5M	N/A	$6.4M	—
Portage Biotech Inc. PRTG	FY2018	N/A	$123.7M	N/A	$15.5M	—

Where NextCure, Inc. Ranks

Frequently Asked Questions

Is NextCure, Inc. profitable?

No, NextCure, Inc. (NXTC) reported a net income of -$55.8M in fiscal year 2025.

What is NextCure, Inc.'s EBITDA?

NextCure, Inc. (NXTC) had EBITDA of -$55.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

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

NextCure, Inc. (NXTC) has a return on equity of -159.8% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is NextCure, Inc.'s operating cash flow?

NextCure, Inc. (NXTC) recorded an outflow of $49.6M in operating cash flow during fiscal year 2025, representing cash used by core business activities.

What are NextCure, Inc.'s total assets?

NextCure, Inc. (NXTC) had $50.2M in total assets as of fiscal year 2025, including both current and long-term assets.

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

NextCure, Inc. (NXTC) invested $44.9M in research and development during fiscal year 2025.

How many shares does NextCure, Inc. have outstanding?

NextCure, Inc. (NXTC) had 4M shares outstanding as of fiscal year 2025.

What is NextCure, Inc.'s current ratio?

NextCure, Inc. (NXTC) had a current ratio of 4.14 as of fiscal year 2025, which is generally considered healthy.

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

NextCure, Inc. (NXTC) had a debt-to-equity ratio of 0.44 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

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

NextCure, Inc. (NXTC) had a return on assets of -111.3% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is NextCure, Inc.'s P/E ratio?

NextCure, Inc. (NXTC) has no price-to-earnings ratio at the moment: net loss, so no earnings multiple (FY2025). The market capitalization is $23.3M as of Oct 3, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

What is NextCure, Inc.'s price-to-sales ratio?

NextCure, Inc. (NXTC) has no price-to-sales ratio at the moment: no revenue reported. The market capitalization is $23.3M as of Oct 3, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

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

At the end of fiscal year 2025, NextCure, Inc. (NXTC) held $41.8M in cash, cash equivalents and investments, and reported an operating cash outflow of $49.6M over that year. Dividing the one by the other, the reported balance equals about 10 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 NextCure, Inc.'s Piotroski F-Score?

NextCure, Inc. (NXTC) has a Piotroski F-Score of 2 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 NextCure, Inc.'s earnings high quality?

NextCure, Inc. (NXTC) reported a net loss of $55.8M while operations used $49.6M of cash. With neither figure positive, 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.