What is Precision Optics's earnings per share (EPS)?

Precision Optics (POCI) reported diluted earnings per share of $-0.85 for fiscal year 2025. This represents a -73.5% 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.

Precision Optics Financials

POCI

Source SEC Filings (10-K/10-Q) Data as of Mar 31, 2026 Currency USD FYE June

This page shows Precision Optics (POCI) 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 POCI FY2025 2026-05-13

Flat sales masked a sharp margin collapse, leaving Precision Optics increasingly dependent on outside funding to keep operating.

After sales plateaued, gross margin collapsed to 17.8% at roughly $19.1M of revenue, meaning the business lost much of the cushion between what it sells and what it costs to produce. Operating cash flow then fell to -$3.5M, so the same revenue base is now absorbing cash instead of covering overhead and routine reinvestment.

The cash loss is real: net loss of -$5.8M and free cash flow of -$3.8M moved in the same direction, so the weakness is not just accounting noise. The share count rose from 6.1M to 7.7M while debt-to-equity fell, reinforcing that balance-sheet support came more from owners than from lenders.

Working capital absorbed more cash as receivables plus inventory reached $7.9M on only $19.1M of revenue, a heavy tie-up for a business this size. That helps explain why a current ratio of 1.6x is less comfortable than it looks, because cash on hand was only $1.8M.

Financial Health Signals

Financial Health Score 30/100

Scored as: Emerging companies peer group

Scored against emerging companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →

Health score ≠ stock price. This rates the quality of Precision Optics's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Cash Runway

Dilution

R&D Intensity

Revenue Progress

Burn Trend

Balance Sheet

Altman Z-Score Distress

0.59

Precision Optics scores 0.59, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($54.5M) relative to total liabilities ($7.5M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.

Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.

Piotroski F-Score Weak

3/9

Precision Optics passes 3 of 9 financial strength tests. 1 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality Low Quality

0.61x

For every $1 of reported earnings, Precision Optics generates $0.61 in operating cash flow (-$3.5M OCF vs -$5.8M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.

Interest Coverage At Risk

-24.5x

Precision Optics earns $-24.5 in operating income for every $1 of interest expense (-$5.6M vs $227K). This narrow margin raises concern about the company's ability to service its debt if operating income declines.

Key Financial Metrics

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Earnings & Revenue

Revenue

$19.1M

YoY-0.1%

5Y CAGR+14.0%

10Y CAGR+17.2%

Precision Optics generated $19.1M in revenue in fiscal year 2025. This represents a decrease of 0.1% from the prior year.

EBITDA

-$5.3M

YoY-112.5%

Precision Optics's EBITDA was -$5.3M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 112.5% from the prior year.

Net Income

-$5.8M

YoY-95.8%

Precision Optics reported -$5.8M in net income in fiscal year 2025. This represents a decrease of 95.8% from the prior year.

EPS (Diluted)

$-0.85

YoY-73.5%

Precision Optics earned $-0.85 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 73.5% from the prior year.

Cash & Balance Sheet

Free Cash Flow

-$3.8M

YoY-27.7%

Precision Optics generated -$3.8M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 27.7% from the prior year.

Cash & Debt

$1.8M

YoY+337.7%

5Y CAGR+9.3%

10Y CAGR+22.1%

Precision Optics held $1.8M in cash against $1.3M in long-term debt as of fiscal year 2025.

Dividends Per Share

N/A

Shares Outstanding

YoY+27.0%

5Y CAGR-10.2%

10Y CAGR+1.9%

Precision Optics had 8M shares outstanding in fiscal year 2025. This represents an increase of 27.0% from the prior year.

Margins & Returns

Gross Margin

17.8%

YoY-12.5pp

5Y CAGR-16.1pp

10Y CAGR-2.6pp

Precision Optics's gross margin was 17.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 12.5 percentage points from the prior year.

Operating Margin

-29.1%

YoY-14.8pp

5Y CAGR-14.7pp

10Y CAGR+1.9pp

Precision Optics's operating margin was -29.1% in fiscal year 2025, reflecting core business profitability. This is down 14.8 percentage points from the prior year.

Net Margin

-30.3%

YoY-14.8pp

5Y CAGR-15.9pp

10Y CAGR-0.2pp

Precision Optics's net profit margin was -30.3% in fiscal year 2025, showing the share of revenue converted to profit. This is down 14.8 percentage points from the prior year.

Return on Equity

-47.1%

YoY-17.8pp

5Y CAGR+4.3pp

10Y CAGR+129.6pp

Precision Optics's ROE was -47.1% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 17.8 percentage points from the prior year.

Capital Allocation

R&D Spending

$1.2M

YoY+17.9%

5Y CAGR+5.5%

10Y CAGR+8.9%

Precision Optics invested $1.2M in research and development in fiscal year 2025. This represents an increase of 17.9% from the prior year.

Share Buybacks

N/A

Capital Expenditures

$227K

YoY-16.6%

5Y CAGR+13.8%

10Y CAGR+13.8%

Precision Optics invested $227K in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 16.6% from the prior year.

POCI Income Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Revenue	$19.1M-0.1%	$19.1M-9.2%	$21.0M+34.2%	$15.7M+46.9%	$10.7M+7.6%	$9.9M
Cost of Revenue	$15.7M+17.9%	$13.3M0.0%	$13.3M+23.8%	$10.8M+48.5%	$7.2M+10.4%	$6.6M
Gross Profit	$3.4M-41.3%	$5.8M-25.0%	$7.7M+56.9%	$4.9M+43.5%	$3.4M+2.1%	$3.4M
R&D Expenses	$1.2M+17.9%	$982K-1.1%	$992K+48.9%	$666K+6.8%	$624K-29.6%	$886K
SG&A Expenses	$7.8M+3.4%	$7.5M+2.2%	$7.4M+31.5%	$5.6M+51.1%	$3.7M-4.7%	$3.9M
Operating Income	-$5.6M-103.8%	-$2.7M-326.6%	-$639K+57.8%	-$1.5M-67.2%	-$906K+36.4%	-$1.4M
Interest Expense	$227K+0.8%	$225K+2.8%	$219K+40.6%	$156K+2835.8%	$5K+429.1%	$1K
Income Tax	$2K0.0%	$2K0.0%	$2K+103.4%	$952+4.4%	$912-57.9%	$2K
Net Income	-$5.8M-95.8%	-$3.0M-1940.9%	-$145K+84.4%	-$928K-802.8%	-$103K+92.8%	-$1.4M
EPS (Diluted)	$-0.85-73.5%	$-0.49-1533.3%	$-0.03+83.3%	$-0.18-1700.0%	$-0.01	N/A

Metric	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24
Revenue	$8.7M+18.2%	$7.4M+10.3%	$6.7M+8.1%	$6.2M+47.7%	$4.2M-7.5%	$4.5M+7.9%	$4.2M-11.0%	$4.7M
Cost of Revenue	$6.7M-7.1%	$7.2M+24.9%	$5.7M+6.5%	$5.4M+42.8%	$3.8M+9.0%	$3.5M+12.2%	$3.1M-16.6%	$3.7M
Gross Profit	$2.1M+904.9%	$205K-78.4%	$946K+18.4%	$799K+91.2%	$418K-60.9%	$1.1M-4.2%	$1.1M+9.1%	$1.0M
R&D Expenses	$267K+7.1%	$250K-20.0%	$312K+36.6%	$228K+8.1%	$211K-33.5%	$318K-20.7%	$401K+13.0%	$355K
SG&A Expenses	$1.9M+9.2%	$1.7M-23.9%	$2.2M+15.7%	$1.9M-14.2%	$2.2M+35.1%	$1.7M-15.3%	$2.0M-3.1%	$2.0M
Operating Income	-$64K+96.3%	-$1.7M-9.2%	-$1.6M-17.6%	-$1.4M+33.5%	-$2.0M-124.0%	-$910K+27.0%	-$1.2M+8.1%	-$1.4M
Interest Expense	$35K-8.7%	$38K-7.9%	$42K-6.3%	$45K-23.8%	$58K-2.0%	$60K-7.2%	$64K+21.8%	$53K
Income Tax	$9K	N/A	N/A	N/A	$0	N/A	N/A	N/A
Net Income	-$108K+93.9%	-$1.8M-8.8%	-$1.6M-16.7%	-$1.4M+33.1%	-$2.1M-116.2%	-$970K+26.0%	-$1.3M+7.1%	-$1.4M
EPS (Diluted)	$-0.01+95.7%	$-0.23-9.5%	$-0.21	N/A	$-0.30-100.0%	$-0.15+28.6%	$-0.21	N/A

POCI Balance Sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Total Assets	$19.8M+17.0%	$16.9M-14.3%	$19.7M+18.2%	$16.7M+166.8%	$6.3M-1.4%	$6.4M
Current Assets	$10.1M+41.3%	$7.1M-27.8%	$9.9M+51.6%	$6.5M+36.2%	$4.8M-3.4%	$4.9M
Cash & Equivalents	$1.8M+337.7%	$405K-86.1%	$2.9M+383.0%	$606K-29.7%	$862K-24.1%	$1.1M
Inventory	$3.6M+24.2%	$2.9M+3.3%	$2.8M-8.1%	$3.0M+60.3%	$1.9M-14.2%	$2.2M
Accounts Receivable	$4.3M+22.3%	$3.5M-9.3%	$3.9M+46.7%	$2.7M+41.8%	$1.9M+26.8%	$1.5M
Goodwill	$8.8M0.0%	$8.8M0.0%	$8.8M0.0%	$8.8M+1183.2%	$688K0.0%	$688K
Total Liabilities	$7.5M+10.0%	$6.8M-11.0%	$7.7M-0.5%	$7.7M+173.2%	$2.8M-20.9%	$3.6M
Current Liabilities	$6.2M+25.4%	$4.9M-6.7%	$5.3M+14.7%	$4.6M+82.7%	$2.5M-20.3%	$3.1M
Long-Term Debt	$1.3M-32.1%	$1.9M-12.7%	$2.2M+11.0%	$2.0M	$0	N/A
Total Equity	$12.3M+21.8%	$10.1M-16.4%	$12.0M+34.3%	$9.0M+161.5%	$3.4M+23.8%	$2.8M
Retained Earnings	-$57.0M-11.3%	-$51.2M-6.1%	-$48.2M-0.3%	-$48.1M-2.0%	-$47.2M-0.2%	-$47.1M

Metric	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24
Total Assets	$33.7M+47.1%	$22.9M+2.3%	$22.4M+13.1%	$19.8M+0.9%	$19.6M+12.1%	$17.5M+1.6%	$17.2M+1.9%	$16.9M
Current Assets	$21.4M+105.4%	$10.4M+5.7%	$9.9M-2.0%	$10.1M+0.9%	$10.0M+27.2%	$7.8M+4.4%	$7.5M+5.5%	$7.1M
Cash & Equivalents	$10.7M+1111.6%	$881K-36.7%	$1.4M-21.5%	$1.8M-30.4%	$2.5M+1099.3%	$212K-66.6%	$636K+56.8%	$405K
Inventory	$3.7M-13.2%	$4.3M+9.9%	$3.9M+8.9%	$3.6M-3.0%	$3.7M-4.6%	$3.8M+11.2%	$3.5M+20.7%	$2.9M
Accounts Receivable	$6.6M+35.0%	$4.9M+16.3%	$4.2M-3.4%	$4.3M+26.6%	$3.4M-2.3%	$3.5M+12.3%	$3.1M-11.9%	$3.5M
Goodwill	$8.8M0.0%	$8.8M0.0%	$8.8M0.0%	$8.8M0.0%	$8.8M0.0%	$8.8M0.0%	$8.8M0.0%	$8.8M
Total Liabilities	$13.6M+0.1%	$13.6M+18.4%	$11.5M+52.2%	$7.5M+16.9%	$6.4M-19.8%	$8.0M+13.1%	$7.1M+3.7%	$6.8M
Current Liabilities	$10.2M+2.4%	$10.0M+30.6%	$7.6M+23.8%	$6.2M+22.8%	$5.0M-21.9%	$6.4M+20.2%	$5.3M+8.7%	$4.9M
Long-Term Debt	$856K-14.4%	$1.0M-12.6%	$1.1M-11.2%	$1.3M-10.2%	$1.4M-11.0%	$1.6M-7.7%	$1.7M-8.0%	$1.9M
Total Equity	$20.1M+115.5%	$9.3M-14.6%	$10.9M-10.9%	$12.3M-7.0%	$13.2M+39.1%	$9.5M-6.5%	$10.1M+0.7%	$10.1M
Retained Earnings	-$60.5M-0.2%	-$60.4M-3.0%	-$58.6M-2.9%	-$57.0M-2.5%	-$55.6M-3.9%	-$53.5M-1.8%	-$52.5M-2.6%	-$51.2M

POCI Cash Flow Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Operating Cash Flow	-$3.5M-32.2%	-$2.7M-3208.7%	-$81K+91.3%	-$933K-2105.1%	$47K+107.9%	-$592K
Capital Expenditures	$227K-16.6%	$272K+1523.2%	$17K-85.2%	$113K+49.1%	$76K-36.3%	$119K
Free Cash Flow	-$3.8M-27.7%	-$3.0M-2919.6%	-$98K+90.6%	-$1.0M-3462.9%	-$29K+95.9%	-$712K
Investing Cash Flow	-$233K+20.6%	-$294K-459.8%	-$52K+87.1%	-$408K-233.2%	-$122K+92.4%	-$1.6M
Financing Cash Flow	$5.1M+1028.4%	$456K-81.4%	$2.5M+126.1%	$1.1M+650.3%	-$197K-118.9%	$1.0M
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24
Operating Cash Flow	-$723K-182.4%	-$256K-427.4%	$78K+113.7%	-$569K+69.6%	-$1.9M-138.0%	-$787K-146.9%	-$319K+67.4%	-$976K
Capital Expenditures	N/A	N/A	N/A	$46K-63.6%	$127K+325.3%	$30K+22.5%	$24K+109.3%	$12K
Free Cash Flow	N/A	N/A	N/A	-$615K+69.2%	-$2.0M-144.9%	-$817K-138.1%	-$343K+65.3%	-$988K
Investing Cash Flow	$49K+151.4%	-$96K+68.1%	-$302K-260.8%	-$84K+6.8%	-$90K-180.6%	-$32K-13.8%	-$28K-138.0%	-$12K
Financing Cash Flow	$10.5M+6719.8%	-$158K-0.1%	-$158K-30.3%	-$121K-102.8%	$4.3M+986.3%	$396K-31.4%	$577K+23.3%	$468K
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

POCI Financial Ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Gross Margin	17.8%-12.5pp	30.3%-6.4pp	36.8%+5.3pp	31.4%-0.7pp	32.2%-1.7pp	33.9%
Operating Margin	-29.1%-14.8pp	-14.3%-11.2pp	-3.0%+6.6pp	-9.7%-1.2pp	-8.5%+5.9pp	-14.3%
Net Margin	-30.3%-14.8pp	-15.4%-14.8pp	-0.7%+5.2pp	-5.9%-5.0pp	-1.0%+13.4pp	-14.4%
Return on Equity	-47.1%-17.8pp	-29.3%-28.1pp	-1.2%+9.2pp	-10.3%-7.3pp	-3.0%+48.4pp	-51.4%
Return on Assets	-29.2%-11.8pp	-17.4%-16.7pp	-0.7%+4.8pp	-5.6%-3.9pp	-1.6%+20.8pp	-22.4%
Current Ratio	1.64+0.2	1.45-0.4	1.87+0.5	1.42-0.5	1.90+0.3	1.57
Debt-to-Equity	0.11-0.1	0.190.0	0.18-0.0	0.22+0.2	0.00-1.3	1.29
FCF Margin	-19.8%-4.3pp	-15.5%-15.0pp	-0.5%+6.2pp	-6.7%-6.4pp	-0.3%+6.9pp	-7.2%

Metric	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24
Gross Margin	23.6%+20.8pp	2.8%-11.4pp	14.2%+1.2pp	12.9%+2.9pp	10.0%-13.7pp	23.6%-3.0pp	26.6%+4.9pp	21.7%
Operating Margin	-0.7%+22.9pp	-23.6%+0.2pp	-23.9%-1.9pp	-21.9%+26.7pp	-48.7%-28.6pp	-20.1%+9.6pp	-29.7%-0.9pp	-28.8%
Net Margin	-1.2%+22.9pp	-24.2%+0.3pp	-24.5%-1.8pp	-22.7%+27.4pp	-50.1%-28.7pp	-21.4%+9.8pp	-31.2%-1.3pp	-29.9%
Return on Equity	-0.5%+18.6pp	-19.1%-4.1pp	-15.0%-3.5pp	-11.4%+4.5pp	-15.9%-5.7pp	-10.2%+2.7pp	-12.9%+1.1pp	-14.0%
Return on Assets	-0.3%+7.5pp	-7.8%-0.5pp	-7.3%-0.2pp	-7.1%+3.6pp	-10.7%-5.1pp	-5.5%+2.1pp	-7.6%+0.7pp	-8.3%
Current Ratio	2.10+1.1	1.05-0.2	1.29-0.3	1.64-0.4	1.99+0.8	1.22-0.2	1.41-0.0	1.45
Debt-to-Equity	0.04-0.1	0.110.0	0.100.0	0.110.0	0.11-0.1	0.170.0	0.17-0.0	0.19
FCF Margin	N/A	N/A	N/A	-10.0%+37.8pp	-47.8%-29.7pp	-18.0%-9.9pp	-8.2%+12.8pp	-20.9%

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Frequently Asked Questions

What is Precision Optics's annual revenue?

Precision Optics (POCI) reported $19.1M in total revenue for fiscal year 2025. This represents a -0.1% 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 Precision Optics's revenue growing?

Precision Optics (POCI) revenue declined by 0.1% year-over-year, from $19.1M to $19.1M in fiscal year 2025.

Is Precision Optics profitable?

No, Precision Optics (POCI) reported a net income of -$5.8M in fiscal year 2025, with a net profit margin of -30.3%.

What is Precision Optics's EBITDA?

Precision Optics (POCI) had EBITDA of -$5.3M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

How much debt does Precision Optics have?

As of fiscal year 2025, Precision Optics (POCI) had $1.8M in cash and equivalents against $1.3M in long-term debt.

What is Precision Optics's gross margin?

Precision Optics (POCI) had a gross margin of 17.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

What is Precision Optics's operating margin?

Precision Optics (POCI) had an operating margin of -29.1% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

What is Precision Optics's net profit margin?

Precision Optics (POCI) had a net profit margin of -30.3% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

What is Precision Optics's return on equity (ROE)?

Precision Optics (POCI) has a return on equity of -47.1% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Precision Optics's free cash flow?

Precision Optics (POCI) generated -$3.8M in free cash flow during fiscal year 2025. This represents a -27.7% 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 Precision Optics's operating cash flow?

Precision Optics (POCI) generated -$3.5M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Precision Optics's total assets?

Precision Optics (POCI) had $19.8M in total assets as of fiscal year 2025, including both current and long-term assets.

What are Precision Optics's capital expenditures?

Precision Optics (POCI) invested $227K in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

How much does Precision Optics spend on research and development?

Precision Optics (POCI) invested $1.2M in research and development during fiscal year 2025.

How many shares does Precision Optics have outstanding?

Precision Optics (POCI) had 8M shares outstanding as of fiscal year 2025.

What is Precision Optics's current ratio?

Precision Optics (POCI) had a current ratio of 1.64 as of fiscal year 2025, which is generally considered healthy.

What is Precision Optics's debt-to-equity ratio?

Precision Optics (POCI) 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 Precision Optics's return on assets (ROA)?

Precision Optics (POCI) had a return on assets of -29.2% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Precision Optics's cash runway?

Based on fiscal year 2025 data, Precision Optics (POCI) had $1.8M in cash against an annual operating cash burn of $3.5M. This gives an estimated cash runway of approximately 6 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.

What is Precision Optics's Altman Z-Score?

Precision Optics (POCI) has an Altman Z-Score of 0.59, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is Precision Optics's Piotroski F-Score?

Precision Optics (POCI) has a Piotroski F-Score of 3 out of 9, indicating weak financial health. 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 Precision Optics's earnings high quality?

Precision Optics (POCI) has an earnings quality ratio of 0.61x, 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.

Can Precision Optics cover its interest payments?

Precision Optics (POCI) has an interest coverage ratio of -24.5x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

How financially healthy is Precision Optics?

Precision Optics (POCI) scores 30 out of 100 on our Financial Health Score, indicating weak standing within its emerging companies peer group. The score is a 0-100 composite of six dimensions (Cash Runway, Dilution, R&D Intensity, Revenue Progress, Burn Trend, Balance Sheet), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.