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

Olema Pharmaceuticals, Inc. (OLMA) reported diluted earnings per share of -$1.87 for fiscal year 2025. This represents a 15.0% 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.

Olema Pharmaceuticals, Inc. (OLMA) Financials

OLMA

FY2025 annual

Revenue Not reported for FY2025

Net Income -$162.5M -25.5% YoY

EPS (Diluted) -$1.87 +15.0% YoY

Operating Cash Flow -$146.7M -40.6% YoY

Market Cap $601.1M as of Oct 16, 2026

Price / Sales n/m no revenue reported

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

Price / Book 1.4x on $430.6M 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 16, 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 Aug 10, 2026 Currency USD FYE December

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

This page shows Olema Pharmaceuticals, Inc. (OLMA) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 7 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 OLMA FY2025 2026-10-04

Olema is funding an increasingly expensive research program with outside capital, while debt remains a small part of its balance sheet.

Between FY2024 and FY2025, R&D spending rose from $124.5M to $157.7M as the operating loss widened, making development investment the clearest visible pressure on results. Operating cash flow reached $146.7M of outflow in FY2025 against a $162.5M net loss, showing that reported losses are translating closely into cash needs.

The latest balance sheet carries liabilities of $54.9M against assets of $533.4M, leaving liabilities a relatively small claim on the asset base. A 0.1x debt-to-equity ratio and 10.0x current ratio indicate financing capacity dominated by equity and liquid assets rather than debt.

Financing cash flow was $211.3M versus $146.7M of operating cash outflow, showing external funding was central to the year's cash movement. Reported liquidity equaled 41.3 months of annual outflow, while revenue is absent from the supplied annual data, so liquidity reflects financing support rather than operating receipts.

Financial Health Signals

Financial health score not available

Olema Pharmaceuticals, 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

1/6

Olema Pharmaceuticals, Inc. passes 1 of 6 computable financial strength tests (3 of the nine could not be computed from available data). 1 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution).

Earnings Quality No Cash Backing

N/A

Olema Pharmaceuticals, Inc. reported a net loss of $162.5M while operations used $146.7M of cash. With neither figure positive, the ratio between the two carries no quality signal.

Key Financial Metrics

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Earnings & Revenue

EBITDA

-$67.1M

YoY-40.5%

QoQ-15.9%

Olema Pharmaceuticals, Inc.'s EBITDA was -$67.1M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 40.5% from the same quarter a year earlier. Against the prior quarter it is down 15.9%.

Net Income

-$63.2M

YoY-44.3%

QoQ-19.0%

Olema Pharmaceuticals, Inc. reported -$63.2M in net income in Q2 2026. This represents a decrease of 44.3% from the same quarter a year earlier. Against the prior quarter it is down 19.0%.

EPS (Diluted)

-$0.61

YoY-19.6%

QoQ-17.3%

Olema Pharmaceuticals, Inc. earned -$0.61 per diluted share (EPS) in Q2 2026. This represents a decrease of 19.6% from the same quarter a year earlier. Against the prior quarter it is down 17.3%.

Revenue

Not reported for Q2 2026.

Cash & Balance Sheet

Cash & Debt

$48.6M

YoY-7.4%

QoQ-7.5%

5Y CAGR-0.7%

Olema Pharmaceuticals, Inc. held $48.6M in cash as of Q2 2026; long-term debt is not reported for that period.

Shares Outstanding

87M

YoY+27.5%

QoQ+0.2%

5Y CAGR+17.2%

Olema Pharmaceuticals, Inc. had 87M shares outstanding in Q2 2026. This represents an increase of 27.5% from the same quarter a year earlier. Against the prior quarter it is up 0.2%.

Free Cash Flow

Not reported for Q2 2026.

Dividends Per Share

Not reported for Q2 2026.

Margins & Returns

Return on Equity

-14.7%

YoY-2.0pp

QoQ-3.6pp

Olema Pharmaceuticals, Inc.'s ROE was -14.7% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is down 2.0 percentage points from the same quarter a year earlier. Against the prior quarter it is down 3.6 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

$57.8M

YoY+31.6%

QoQ+17.4%

Olema Pharmaceuticals, Inc. invested $57.8M in research and development in Q2 2026. This represents an increase of 31.6% from the same quarter a year earlier. Against the prior quarter it is up 17.4%.

Share Buybacks

Not reported for Q2 2026.

Capital Expenditures

Not reported for Q2 2026.

OLMA 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.

OLMA quarterly income statement

Metric	TTM	FY25DEF 14A	FY24DEF 14A	FY23DEF 14A	FY2210-K	FY2110-K	FY2010-K	FY1910-K
R&D Expenses	N/A	$157.7M+26.6%	$124.5M+44.6%	$86.1M+4.7%	$82.3M+61.0%	$51.1M+272.9%	$13.7M+249.6%	$3.9M
SG&A Expenses	N/A	$21.0M+18.4%	$17.7M-5.7%	$18.8M-23.8%	$24.7M+21.2%	$20.4M+160.6%	$7.8M+1841.4%	$403K
Operating Income	N/A	-$178.7M-25.6%	-$142.3M-35.5%	-$105.0M+1.9%	-$107.0M-49.7%	-$71.5M-232.1%	-$21.5M-398.0%	-$4.3M
EBITDA	N/A	-$178.2M-25.6%	-$141.9M-35.6%	-$104.6M+1.9%	-$106.6M-49.5%	-$71.3M-231.5%	-$21.5M-398.8%	-$4.3M
Interest Expense	N/A	N/A	N/A	N/A	N/A	N/A	$653K	N/A
Income Tax	N/A	$3K+50.0%	$2K0.0%	$2K+100.0%	$1K	N/A	N/A	N/A
Net Income	N/A	-$162.5M-25.5%	-$129.5M-34.0%	-$96.7M+7.8%	-$104.8M-47.4%	-$71.1M-221.4%	-$22.1M-412.5%	-$4.3M
EPS (Basic)	N/A	-$1.87+15.0%	-$2.20-2.8%	-$2.14+18.3%	-$2.62-45.6%	-$1.80+47.4%	-$3.42-106.0%	-$1.66
EPS (Diluted)	-$2.13	-$1.87+15.0%	-$2.20-2.8%	-$2.14+18.3%	-$2.62-45.6%	-$1.80	-$3.42	-$1.66
Diluted Shares (Avg)	N/A	87M+48.1%	59M+29.8%	45M+13.1%	40M+1.2%	40M	7M	3M

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
R&D Expenses	$57.8M+31.6%	$49.2M+60.8%	N/A	$40.0M+20.2%	$43.9M+50.8%	$30.6M+2.5%	N/A	$33.2M+70.8%
SG&A Expenses	$9.4M+137.1%	$8.8M+106.0%	N/A	$5.9M+34.8%	$4.0M-10.4%	$4.2M-4.6%	N/A	$4.4M+13.0%
Operating Income	-$67.2M-40.4%	-$58.0M-66.3%	N/A	-$45.9M-21.9%	-$47.9M-42.7%	-$34.9M-1.6%	N/A	-$37.6M-61.2%
EBITDA	-$67.1M-40.5%	-$57.9M-66.5%	N/A	-$45.8M-22.1%	-$47.7M-42.8%	-$34.7M-1.4%	N/A	-$37.5M-61.4%
Net Income	-$63.2M-44.3%	-$53.1M-74.7%	N/A	-$42.2M-22.2%	-$43.8M-44.1%	-$30.4M+1.9%	N/A	-$34.6M-60.7%
EPS (Basic)	-$0.61-19.6%	-$0.52-44.4%	-$0.51-27.5%	-$0.49+18.3%	-$0.51+5.6%	-$0.36+35.7%	-$0.40+16.7%	-$0.60-25.0%
EPS (Diluted)	-$0.61-19.6%	-$0.52-44.4%	-$0.51-27.5%	-$0.49+18.3%	-$0.51	-$0.36	-$0.40+16.7%	-$0.60-25.0%
Diluted Shares (Avg)	104M+22.2%	103M+20.3%	N/A	86M+49.7%	85M	85M	N/A	57M+27.3%

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

OLMA Balance Sheet

OLMA quarterly balance sheet

Metric	FY25DEF 14A	FY24DEF 14A	FY23DEF 14A	FY2210-K	FY2110-K	FY2010-K	FY1910-K
Total Assets	$533.4M+18.3%	$451.0M+62.8%	$276.9M+28.4%	$215.6M-27.1%	$295.9M-13.6%	$342.7M	N/A
Current Assets	$515.5M+17.6%	$438.5M+64.5%	$266.5M+27.6%	$208.9M-28.1%	$290.7M-15.0%	$342.1M	N/A
Cash & Equivalents	$48.3M-65.4%	$139.5M+103.5%	$68.5M+189.2%	$23.7M+71.6%	$13.8M-95.9%	$338.5M+497766.2%	$68K
Short-Term Investments	$457.1M+55.2%	$294.6M+52.4%	$193.3M+6.9%	$180.7M-33.9%	$273.4M	$0	$0
Long-Term Investments	$0	$0	$0	$0	$0	$0	$0
Total Liabilities	$54.9M+30.6%	$42.0M+82.3%	$23.1M+27.4%	$18.1M+59.1%	$11.4M+148.1%	$4.6M	N/A
Current Liabilities	$51.8M+24.1%	$41.8M+93.1%	$21.6M+30.6%	$16.5M+83.5%	$9.0M+96.7%	$4.6M	N/A
Non-Current Liabilities	$3.1M+1094.2%	$257K-82.0%	$1.4M-7.8%	$1.6M-34.3%	$2.4M	$0	N/A
Total Equity	$478.6M+17.0%	$409.0M+61.1%	$253.9M+28.5%	$197.5M-30.6%	$284.6M-15.8%	$338.1M+3291.8%	-$10.6M
Retained Earnings	-$597.6M-37.3%	-$435.1M-42.4%	-$305.6M-46.3%	-$209.0M-100.6%	-$104.2M-214.8%	-$33.1M	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	$486.6M+27.4%	$530.6M+29.5%	$533.4M+18.3%	$352.5M+53.1%	$382.0M+50.1%	$409.6M+55.3%	$451.0M+62.8%	$230.2M-21.4%
Current Assets	$469.9M+27.8%	$513.2M+29.4%	$515.5M+17.6%	$334.3M+53.4%	$367.7M+51.8%	$396.7M+57.3%	$438.5M+64.5%	$218.0M-22.7%
Cash & Equivalents	$48.6M-7.4%	$52.5M+3.8%	$48.3M-65.4%	$35.3M-1.7%	$52.5M+210.6%	$50.6M+50.2%	$139.5M+103.5%	$35.9M-69.4%
Short-Term Investments	$412.5M+33.3%	$452.8M+32.4%	$457.1M+55.2%	$293.7M+64.2%	$309.4M+39.3%	$342.1M+58.9%	$294.6M+52.4%	$178.9M+12.2%
Long-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Total Liabilities	$56.0M+52.4%	$50.2M+91.6%	$54.9M+30.6%	$45.0M+43.8%	$36.8M+34.2%	$26.2M-4.3%	$42.0M+82.3%	$31.3M+77.0%
Current Liabilities	$53.0M+59.9%	$47.2M+81.0%	$51.8M+24.1%	$41.7M+35.7%	$33.2M+25.0%	$26.1M-0.6%	$41.8M+93.1%	$30.7M+92.3%
Non-Current Liabilities	$3.0M-16.7%	$3.0M+2339.0%	$3.1M+1094.2%	$3.3M+489.0%	$3.6M+319.3%	$123K-89.3%	$257K-82.0%	$562K-66.9%
Total Equity	$430.6M+24.7%	$480.5M+25.3%	$478.6M+17.0%	$307.5M+54.6%	$345.2M+52.0%	$383.5M+62.3%	$409.0M+61.1%	$198.9M-27.7%
Retained Earnings	-$713.8M-40.2%	-$650.6M-39.8%	-$597.6M-37.3%	-$551.5M-37.3%	-$509.3M-38.8%	-$465.5M-38.3%	-$435.1M-42.4%	-$401.5M-44.0%

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

OLMA Cash Flow Statement

OLMA quarterly cash flow statement

Metric	TTM	FY25DEF 14A	FY24DEF 14A	FY23DEF 14A	FY2210-K	FY2110-K	FY2010-K	FY1910-K
Operating Cash Flow	-$164.7M	-$146.7M-40.6%	-$104.4M-24.6%	-$83.7M-2.0%	-$82.1M-61.9%	-$50.7M-155.2%	-$19.9M-544.8%	-$3.1M
Depreciation & Amortization	N/A	$490K+24.7%	$393K+4.2%	$377K+5.6%	$357K+119.0%	$163K+1381.8%	$11K+22.2%	$9K
Stock-Based Compensation	N/A	$17.6M-22.1%	$22.6M+30.9%	$17.3M-8.4%	$18.8M+18.3%	$15.9M+412.0%	$3.1M	N/A
Capital Expenditures	N/A	N/A	$159K	N/A	$363K-77.0%	$1.6M+2712.5%	$56K	N/A
Free Cash Flow	N/A	N/A	-$104.5M	N/A	-$82.4M-57.7%	-$52.3M-162.3%	-$19.9M	N/A
Investing Cash Flow	-$99.5M	-$155.8M-66.5%	-$93.5M-1828.0%	-$4.9M-105.3%	$91.5M+133.2%	-$275.4M-491753.6%	-$56K	N/A
Financing Cash Flow	$260.4M	$211.3M-21.4%	$268.8M+101.5%	$133.4M+27928.4%	$476K-65.8%	$1.4M-99.6%	$358.4M	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	-$45.9M-53.6%	-$46.0M-4.6%	-$38.3M-45.8%	-$34.5M-27.8%	-$29.9M-8.4%	-$44.0M-87.2%	-$26.3M-42.3%	-$27.0M-18.8%
Depreciation & Amortization	$102K-22.7%	$119K-7.0%	$187K+61.2%	$43K-54.7%	$132K+40.4%	$128K+45.5%	$116K+31.8%	$95K+5.6%
Stock-Based Compensation	$12.9M+175.0%	$10.1M+131.8%	N/A	$4.3M-24.5%	$4.7M-18.0%	$4.4M-10.8%	N/A	$5.6M+37.1%
Capital Expenditures	N/A	N/A	N/A	$0	N/A	N/A	$0	$0
Free Cash Flow	N/A	N/A	N/A	-$34.5M-27.8%	N/A	N/A	-$26.3M	-$27.0M
Investing Cash Flow	$40.8M+19.3%	$4.5M+110.0%	-$162.2M-41.7%	$17.3M-62.4%	$34.2M+801.8%	-$45.1M-123.8%	-$114.4M-270.1%	$45.9M+280.5%
Financing Cash Flow	$1.1M+144.0%	$45.7M+20487.4%	$213.6M-12.6%	$41K-55.4%	-$2.5M-116.1%	$222K-97.5%	$244.3M+46611.3%	$92K-99.9%

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

OLMA 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.

OLMA quarterly financial ratios

Metric	FY25DEF 14A	FY24DEF 14A	FY23DEF 14A	FY2210-K	FY2110-K	FY2010-K	FY1910-K
Return on Equity	-34.0%-2.3pp	-31.7%+6.4pp	-38.1%+15.0pp	-53.0%-28.1pp	-25.0%-18.4pp	-6.5%	N/A
Return on Assets	-30.4%-1.7pp	-28.7%+6.2pp	-34.9%+13.7pp	-48.6%-24.6pp	-24.0%-17.6pp	-6.5%	N/A
Current Ratio	9.95-0.5x	10.50-1.8x	12.33-0.3x	12.62-19.6x	32.23-42.4x	74.62	N/A
Debt-to-Equity	0.110.0x	0.100.0x	0.090.0x	0.09+0.1x	0.040.0x	0.01	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	-14.7%-2.0pp	-11.1%-3.1pp	N/A	-13.7%+3.6pp	-12.7%+0.7pp	-7.9%+5.2pp	N/A	-17.4%-9.5pp
Return on Assets	-13.0%-1.5pp	-10.0%-2.6pp	N/A	-12.0%+3.0pp	-11.5%+0.5pp	-7.4%+4.3pp	N/A	-15.0%-7.7pp
Current Ratio	8.86-2.2x	10.88-4.3x	9.95-0.5x	8.03+0.9x	11.09+2.0x	15.22+5.6x	10.50-1.8x	7.10-10.6x
Debt-to-Equity	0.130.0x	0.100.0x	0.110.0x	0.150.0x	0.110.0x	0.070.0x	0.100.0x	0.16+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
Olema Pharmaceuticals, Inc. OLMA	FY2025	N/A	-$162.5M	N/A	$601.1M	—
Arvinas, Inc ARVN	FY2025	$262.6M	-$81.0M	-30.9%	$445.9M	74/100
Bicara Therapeutics Inc. BCAX	FY2025	N/A	-$137.9M	N/A	$1.1B	—
Oruka Therapeutics, Inc. ORKA	FY2025	N/A	-$105.4M	N/A	$5.1B	—
Verastem, Inc. VSTM	FY2025	$30.9M	-$209.5M	N/A	$698.2M	52/100

Where Olema Pharmaceuticals, Inc. Ranks

Frequently Asked Questions

Is Olema Pharmaceuticals, Inc. profitable?

No, Olema Pharmaceuticals, Inc. (OLMA) reported a net income of -$162.5M in fiscal year 2025.

What is Olema Pharmaceuticals, Inc.'s EBITDA?

Olema Pharmaceuticals, Inc. (OLMA) had EBITDA of -$178.2M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

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

Olema Pharmaceuticals, Inc. (OLMA) has a return on equity of -34.0% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Olema Pharmaceuticals, Inc.'s operating cash flow?

Olema Pharmaceuticals, Inc. (OLMA) recorded an outflow of $146.7M in operating cash flow during fiscal year 2025, representing cash used by core business activities.

What are Olema Pharmaceuticals, Inc.'s total assets?

Olema Pharmaceuticals, Inc. (OLMA) had $533.4M in total assets as of fiscal year 2025, including both current and long-term assets.

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

Olema Pharmaceuticals, Inc. (OLMA) invested $157.7M in research and development during fiscal year 2025.

How many shares does Olema Pharmaceuticals, Inc. have outstanding?

Olema Pharmaceuticals, Inc. (OLMA) had 87M shares outstanding as of fiscal year 2025.

What is Olema Pharmaceuticals, Inc.'s current ratio?

Olema Pharmaceuticals, Inc. (OLMA) had a current ratio of 9.95 as of fiscal year 2025, which is generally considered healthy.

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

Olema Pharmaceuticals, Inc. (OLMA) had a debt-to-equity ratio of 0.11 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

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

Olema Pharmaceuticals, Inc. (OLMA) had a return on assets of -30.4% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

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

Olema Pharmaceuticals, Inc. (OLMA) has no price-to-earnings ratio at the moment: net loss, so no earnings multiple (FY2025). The market capitalization is $601.1M as of Oct 16, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

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

Olema Pharmaceuticals, Inc. (OLMA) has no price-to-sales ratio at the moment: no revenue reported. The market capitalization is $601.1M as of Oct 16, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

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

At the end of fiscal year 2025, Olema Pharmaceuticals, Inc. (OLMA) held $505.4M in cash, cash equivalents and investments, and reported an operating cash outflow of $146.7M over that year. Dividing the one by the other, the reported balance equals about 41 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 Olema Pharmaceuticals, Inc.'s Piotroski F-Score?

Olema Pharmaceuticals, Inc. (OLMA) has a Piotroski F-Score of 1 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 Olema Pharmaceuticals, Inc.'s earnings high quality?

Olema Pharmaceuticals, Inc. (OLMA) reported a net loss of $162.5M while operations used $146.7M 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.