Ribbon Communications Inc. (RBBN) Financials
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 2, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q2 FY2026, filed Jul 31, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the RBBN SEC filings page.
Ribbon Communications Inc. (RBBN) reported $797.6M in revenue over the twelve months to Jun 30, 2026, down 7.6% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 11 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).
Stable scale is being offset by margin compression and financing costs, leaving cash generation stronger than reported operating earnings.
In FY2025, operating cash flow of$51.4M converted to free cash flow of$26.1M after reinvestment, even though operating income was negative. That combination indicates cash conversion is being supported by noncash charges and working-capital timing, not by durable operating profit alone.
Gross margin fell from
FY2025 net income was only
Financial Health Signals
Scored against operating 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 Ribbon Communications Inc.'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.
Ribbon Communications Inc. has an operating margin of -0.4%, meaning the company loses less than $1 on every $100 of revenue. This results in a profitability score of 32/100. This is down from 2.0% the prior year.
Ribbon Communications Inc.'s revenue grew a modest 1.3% year-over-year to $844.6M. This slow but positive growth earns a score of 34/100.
Ribbon Communications Inc. has elevated debt relative to equity (D/E of 0.72), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 15/100, reflecting increased financial risk.
Ribbon Communications Inc.'s current ratio of 1.44 indicates adequate short-term liquidity, earning a score of 39/100. The company can meet its near-term obligations, though with limited headroom.
Ribbon Communications Inc. has a free cash flow margin of 3.1%, earning a moderate score of 36/100. The company generates positive cash flow after capital investments, but with room for improvement.
Ribbon Communications Inc.'s ROE of 0.0% shows moderate profitability relative to equity, earning a score of 31/100. This is unchanged from the prior year.
Ribbon Communications Inc. scores -0.70, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($316.5M) relative to total liabilities ($763.3M). 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.
Ribbon Communications Inc. passes 7 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), all 3 leverage/liquidity signals pass, neither operating efficiency signal passes.
Ribbon Communications Inc. reported $40K of net income while generating $51.4M in operating cash flow. The ratio between the two is outside the range this page publishes as a per-dollar figure, so both figures are given instead.
Ribbon Communications Inc. reported an operating loss of $3.3M against $44.0M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.
Key Financial Metrics
Earnings & Revenue
Ribbon Communications Inc. generated $192.3M in revenue in Q2 2026. This represents a decrease of 12.8% from the same quarter a year earlier. Against the prior quarter it is up 18.3%.
Ribbon Communications Inc.'s EBITDA was $2.3M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 88.4% from the same quarter a year earlier. Against the prior quarter it is up 113.5%.
Ribbon Communications Inc. reported -$26.9M in net income in Q2 2026. This represents a decrease of 142.2% from the same quarter a year earlier. Against the prior quarter it is up 22.1%.
Ribbon Communications Inc. earned -$0.15 per diluted share (EPS) in Q2 2026. This represents a decrease of 150.0% from the same quarter a year earlier. Against the prior quarter it is up 25.0%.
Cash & Balance Sheet
Ribbon Communications Inc. recorded an outflow of $15.8M in free cash flow in Q2 2026, representing a cash shortfall after capex. This represents a decrease of 143.9% from the same quarter a year earlier. Against the prior quarter it is up 37.0%.
Ribbon Communications Inc. held $43.5M in cash against $320.6M in long-term debt as of Q2 2026.
Not reported for Q2 2026.
Margins & Returns
Ribbon Communications Inc.'s gross margin was 47.0% in Q2 2026, indicating the percentage of revenue retained after direct costs. This is down 2.6 percentage points from the same quarter a year earlier. Against the prior quarter it is up 4.1 percentage points.
Ribbon Communications Inc.'s operating margin was -6.3% in Q2 2026, reflecting core business profitability. This is down 8.3 percentage points from the same quarter a year earlier. Against the prior quarter it is up 13.1 percentage points.
Ribbon Communications Inc.'s net profit margin was -14.0% in Q2 2026, showing the share of revenue converted to profit. This is down 8.9 percentage points from the same quarter a year earlier. Against the prior quarter it is up 7.2 percentage points.
Ribbon Communications Inc.'s ROE was -6.8% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is down 3.9 percentage points from the same quarter a year earlier. Against the prior quarter it is up 1.4 percentage points.
Capital Allocation
Ribbon Communications Inc. invested $44.9M in research and development in Q2 2026. This represents an increase of 0.4% from the same quarter a year earlier. Against the prior quarter it is up 0.9%.
Ribbon Communications Inc. repurchased no shares in Q2 2026. This represents a decrease of 100.0% from the same quarter a year earlier. Against the prior quarter it is down 100.0%.
Ribbon Communications Inc. invested $4.3M in capex in Q2 2026, funding long-term assets and infrastructure. This represents a decrease of 24.4% from the same quarter a year earlier. Against the prior quarter it is up 39.8%.
RBBN 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.
| 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 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $192.3M-12.8% | $162.6M-10.3% | $227.3M-9.6% | $215.4M+2.4% | $220.6M+14.5% | $181.3M+0.9% | $251.4M+11.0% | $210.2M+3.5% |
| Cost of Revenue | $102.0M-8.3% | $92.9M-6.1% | $106.3M-4.5% | $107.4M+6.7% | $111.3M+17.4% | $98.9M+12.8% | $111.3M+6.3% | $100.6M+1.0% |
| Gross Profit | $90.3M-17.3% | $69.7M-15.4% | $121.1M-13.6% | $108.0M-1.5% | $109.3M+11.7% | $82.4M-10.4% | $140.1M+15.1% | $109.6M+5.9% |
| R&D Expenses | $44.9M+0.4% | $44.4M+2.0% | $44.7M-0.7% | $45.9M+0.5% | $44.7M+2.8% | $43.6M-4.8% | $45.0M | $45.6M-1.3% |
| SG&A Expenses | $14.6M-11.9% | $17.0M+12.2% | $16.1M-5.6% | $16.4M-24.2% | $16.6M+11.6% | $15.1M-0.4% | $17.1M | $21.6M+67.5% |
| Operating Income | -$12.2M-389.1% | -$31.7M-61.6% | $9.3M-72.0% | $2.8M+398.1% | $4.2M+318.4% | -$19.6M-45.4% | $33.2M+99.3% | -$927K-208.3% |
| EBITDA | $2.3M-88.4% | -$17.0M-270.1% | $24.3M-49.9% | $18.2M+19.5% | $19.8M+36.5% | -$4.6M-245.3% | $48.4M+45.2% | $15.2M-19.0% |
| Interest Expense | $10.7M-2.7% | $9.8M-7.1% | $10.9M-9.0% | $11.6M-2.9% | $11.0M+183.0% | $10.5M+75.4% | $12.0M | $12.0M+67.3% |
| Income Tax | $1.7M-21.7% | -$6.4M-755.2% | -$89.3M-5371.9% | $3.1M+95.9% | $2.2M+45.6% | -$754K-122.3% | $1.7M | $1.6M-65.2% |
| Net Income | -$26.9M-142.2% | -$34.5M-31.5% | $49.5M-18.3% | -$12.1M+9.8% | -$11.1M+34.0% | -$26.2M+13.6% | $60.5M+755.3% | -$13.4M+0.6% |
| EPS (Basic) | -$0.15-150.0% | -$0.20-33.3% | $0.50+1150.0% | -$0.07+12.5% | -$0.06+40.0% | -$0.15+16.7% | $0.040.0% | -$0.080.0% |
| EPS (Diluted) | -$0.15-150.0% | -$0.20-33.3% | $0.50 | -$0.07+12.5% | -$0.06+40.0% | -$0.15+16.7% | $0.04 | -$0.080.0% |
| Diluted Shares (Avg) | 177M+0.3% | 176M0.0% | N/A | 177M+1.1% | 177M+1.7% | 176M+1.9% | N/A | 175M+2.0% |
RBBN Balance Sheet
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.
| 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 | $1.1B+0.1% | $1.2B+2.0% | $1.2B+4.3% | $1.1B-0.9% | $1.1B+3.3% | $1.1B+5.5% | $1.2B+1.6% | $1.1B-0.6% |
| Current Assets | $405.6M-6.5% | $408.5M-3.9% | $454.5M-2.0% | $418.4M+0.4% | $433.9M+7.4% | $425.1M+15.2% | $463.7M+10.7% | $416.6M+6.7% |
| Cash & Equivalents | $43.5M-28.0% | $67.6M-5.2% | $96.4M+9.8% | $74.8M+100.9% | $60.5M-6.4% | $71.2M+130.3% | $87.8M+231.3% | $37.2M+52.0% |
| Short-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Inventory | $87.8M+9.4% | $81.5M+2.3% | $78.8M-0.5% | $80.0M+3.5% | $80.3M+1.4% | $79.6M-1.4% | $79.2M+2.1% | $77.3M+10.2% |
| Accounts Receivable | $220.2M-11.7% | $204.1M-9.5% | $231.9M-9.0% | $218.3M-12.4% | $249.4M+18.2% | $225.5M+6.1% | $254.7M-5.1% | $249.2M+2.9% |
| Long-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Goodwill | $300.9M0.0% | $300.9M0.0% | $300.9M0.0% | $300.9M0.0% | $300.9M0.0% | $300.9M0.0% | $300.9M0.0% | $300.9M0.0% |
| Total Liabilities | $750.3M-2.8% | $740.6M-2.0% | $763.3M+0.7% | $745.2M+3.6% | $771.7M+10.2% | $755.7M+15.6% | $757.9M+9.6% | $719.2M+6.1% |
| Current Liabilities | $309.3M-1.4% | $298.8M-2.1% | $315.5M-4.1% | $291.9M-0.4% | $313.6M+15.1% | $305.2M-39.5% | $328.9M-3.6% | $293.1M-9.9% |
| Non-Current Liabilities | $440.9M-3.8% | $441.8M-1.9% | $447.8M+4.4% | $453.3M+6.4% | $458.1M+7.1% | $450.5M+201.4% | $429.1M+22.5% | $426.1M+21.0% |
| Long-Term Debt | $320.6M-2.1% | $323.0M-1.9% | $324.5M-1.9% | $326.1M-1.9% | $327.6M-1.9% | $329.2M | $330.7M+67.5% | $332.4M+60.7% |
| Total Equity | $392.6M+6.0% | $419.1M+9.8% | $449.0M+11.0% | $360.1M-9.0% | $370.4M-8.5% | $381.8M-10.1% | $404.6M-10.6% | $395.5M-10.9% |
| Retained Earnings | -$1.6B+1.0% | -$1.6B+2.0% | -$1.5B+2.5% | -$1.6B-2.7% | -$1.6B-2.8% | -$1.6B-3.2% | -$1.6B-3.6% | -$1.6B-3.5% |
RBBN Cash Flow 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.
| 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 | -$11.5M-1346.7% | -$22.0M-522.2% | $29.2M-52.7% | $26.5M+278.4% | -$795K+91.9% | -$3.5M-127.0% | $61.8M+206.7% | -$14.8M-27.7% |
| Depreciation & Amortization | $14.5M-6.6% | $14.7M-2.2% | $15.0M-1.6% | $15.4M-4.5% | $15.5M-5.3% | $15.0M-9.8% | $15.2M-8.8% | $16.1M-9.9% |
| Stock-Based Compensation | $4.8M+7.9% | $6.0M+38.6% | N/A | $5.8M+44.5% | $4.5M+28.1% | $4.3M-5.0% | N/A | $4.0M-18.3% |
| Capital Expenditures | $4.3M-24.4% | $3.1M-74.7% | $2.0M-75.3% | $5.5M-37.2% | $5.7M+83.3% | $12.1M+383.4% | $8.0M+189.0% | $8.8M+248.6% |
| Free Cash Flow | -$15.8M-143.9% | -$25.1M-59.8% | $27.3M-49.3% | $21.0M+188.5% | -$6.5M+49.7% | -$15.7M-248.1% | $53.8M+209.5% | -$23.7M-67.2% |
| Investing Cash Flow | -$4.8M+14.7% | -$3.1M+74.7% | -$2.0M+75.3% | -$5.5M+38.6% | -$5.7M-76.8% | -$12.1M-356.2% | -$8.0M-178.9% | -$9.0M-256.4% |
| Financing Cash Flow | -$8.0M-44.1% | -$3.1M-71.9% | -$5.9M-140.4% | -$6.1M-85.9% | -$5.6M-111.3% | -$1.8M+69.0% | -$2.5M+84.3% | -$3.3M-172.2% |
| Share Buybacks | $0-100.0% | $824K | $3.2M | $3.5M | $2.3M | N/A | N/A | N/A |
Not reported in any period shown, so not listed: Dividends Paid.
RBBN 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.
| 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 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 47.0%-2.6pp | 42.9%-2.6pp | 53.3%-2.5pp | 50.1%-2.0pp | 49.5%-1.3pp | 45.4%-5.7pp | 55.7%+2.0pp | 52.1%+1.2pp |
| Operating Margin | -6.3%-8.3pp | -19.5%-8.7pp | 4.1%-9.1pp | 1.3%+1.7pp | 1.9%+2.9pp | -10.8%-3.3pp | 13.2%+5.9pp | -0.4%-0.9pp |
| Net Margin | -14.0%-8.9pp | -21.2%-6.7pp | 21.8%-2.3pp | -5.6%+0.8pp | -5.0%+3.7pp | -14.5%+2.4pp | 24.1%+21.0pp | -6.4%+0.3pp |
| Return on Equity | -6.8%-3.9pp | -8.2%-1.4pp | 11.0%-3.9pp | -3.4%0.0pp | -3.0%+1.2pp | -6.9%+0.3pp | 15.0%+13.4pp | -3.4%-0.3pp |
| Return on Assets | -2.4%-1.4pp | -3.0%-0.7pp | 4.1%-1.1pp | -1.1%+0.1pp | -1.0%+0.5pp | -2.3%+0.5pp | 5.2%+4.6pp | -1.2%0.0pp |
| Current Ratio | 1.31-0.1x | 1.370.0x | 1.440.0x | 1.430.0x | 1.38-0.1x | 1.39+0.7x | 1.41+0.2x | 1.42+0.2x |
| Debt-to-Equity | 0.82-0.1x | 0.77-0.1x | 0.72-0.1x | 0.91+0.1x | 0.88+0.1x | 0.86-0.7x | 0.82+0.4x | 0.84+0.4x |
| Asset Turnover | 0.170.0x | 0.140.0x | 0.190.0x | 0.190.0x | 0.190.0x | 0.160.0x | 0.220.0x | 0.190.0x |
| FCF Margin | -8.2%-5.3pp | -15.4%-6.8pp | 12.0%-9.4pp | 9.7%+21.0pp | -2.9%+3.8pp | -8.6%-14.5pp | 21.4%+13.7pp | -11.3%-4.3pp |
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 |
|---|---|---|---|---|---|---|
| Ribbon Communications Inc. RBBN | FY2025 | $844.6M | $40K | 0.0% | $316.5M | 31/100 |
| VTEX VTEX | FY2025 | $240.5M | $20.0M | 8.3% | $603.5M | 58/100 |
| Pros Holdings, Inc. PRO | FY2024 | $330.4M | -$20.5M | -6.2% | $1.1B | 32/100 |
| Red Violet, Inc. RDVT | FY2025 | $90.3M | $13.2M | 14.6% | $1.3B | 78/100 |
| Domo, Inc. DOMO | FY2026 | $318.9M | -$59.3M | -18.6% | $167.0M | 14/100 |
| Ibotta, Inc. IBTA | FY2025 | $342.4M | $3.6M | 1.1% | $793.9M | 64/100 |
Where Ribbon Communications Inc. Ranks
Frequently Asked Questions
What is Ribbon Communications Inc.'s annual revenue?
Ribbon Communications Inc. (RBBN) reported $844.6M in total revenue for fiscal year 2025. This represents a 1.3% 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 Ribbon Communications Inc.'s revenue growing?
Ribbon Communications Inc. (RBBN) revenue grew by 1.3% year-over-year, from $833.9M to $844.6M in fiscal year 2025.
Is Ribbon Communications Inc. profitable?
Yes, Ribbon Communications Inc. (RBBN) reported a net income of $40K in fiscal year 2025, with a net profit margin of 0.0%.
What is Ribbon Communications Inc.'s EBITDA?
Ribbon Communications Inc. (RBBN) had EBITDA of $57.6M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Ribbon Communications Inc. have?
As of fiscal year 2025, Ribbon Communications Inc. (RBBN) had $96.4M in cash and equivalents against $324.5M in long-term debt.
What is Ribbon Communications Inc.'s gross margin?
Ribbon Communications Inc. (RBBN) had a gross margin of 49.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Ribbon Communications Inc.'s operating margin?
Ribbon Communications Inc. (RBBN) had an operating margin of -0.4% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Ribbon Communications Inc.'s net profit margin?
Ribbon Communications Inc. (RBBN) had a net profit margin of 0.0% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Ribbon Communications Inc.'s return on equity (ROE)?
Ribbon Communications Inc. (RBBN) has a return on equity of 0.0% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Ribbon Communications Inc.'s free cash flow?
Ribbon Communications Inc. (RBBN) generated $26.1M in free cash flow during fiscal year 2025. This represents a -6.4% 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 Ribbon Communications Inc.'s operating cash flow?
Ribbon Communications Inc. (RBBN) generated $51.4M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Ribbon Communications Inc.'s total assets?
Ribbon Communications Inc. (RBBN) had $1.2B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Ribbon Communications Inc.'s capital expenditures?
Ribbon Communications Inc. (RBBN) invested $25.3M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Ribbon Communications Inc. spend on research and development?
Ribbon Communications Inc. (RBBN) invested $178.9M in research and development during fiscal year 2025.
What is Ribbon Communications Inc.'s current ratio?
Ribbon Communications Inc. (RBBN) had a current ratio of 1.44 as of fiscal year 2025, which is considered adequate.
What is Ribbon Communications Inc.'s debt-to-equity ratio?
Ribbon Communications Inc. (RBBN) had a debt-to-equity ratio of 0.72 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Ribbon Communications Inc.'s return on assets (ROA)?
Ribbon Communications Inc. (RBBN) had a return on assets of 0.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Ribbon Communications Inc.'s P/E ratio?
Ribbon Communications Inc. (RBBN) has no price-to-earnings ratio at the moment: net loss, so no earnings multiple (trailing 12 months to June 30, 2026). The market capitalization is $316.5M as of Oct 2, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Ribbon Communications Inc.'s price-to-sales ratio?
Ribbon Communications Inc. (RBBN) trades at 0.4x sales, its market capitalization divided by revenue of $797.6M revenue, trailing 12 months to June 30, 2026. The market capitalization is $316.5M as of Oct 2, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Ribbon Communications Inc.'s Altman Z-Score?
Ribbon Communications Inc. (RBBN) has an Altman Z-Score of -0.70, 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 Ribbon Communications Inc.'s Piotroski F-Score?
Ribbon Communications Inc. (RBBN) has a Piotroski F-Score of 7 out of 9, indicating strong 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 Ribbon Communications Inc.'s earnings high quality?
Ribbon Communications Inc. (RBBN) reported $40K of net income while generating $51.4M in operating cash flow. The ratio between the two is outside the range this page publishes as a per-dollar figure, so both figures are given instead. 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 Ribbon Communications Inc. cover its interest payments?
Ribbon Communications Inc. (RBBN) reported an operating loss of $3.3M against $44.0M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. 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 Ribbon Communications Inc.?
Ribbon Communications Inc. (RBBN) scores 31 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), 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.