Rocky Mountain Chocolate Factory Financials
Rocky Mountain Chocolate Factory (RMCF) reported $27.5M in revenue for fiscal year 2026, down 7.0% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 14 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).
External financing is cushioning persistent operating losses while cost reductions improve margins without restoring self-funded cash generation.
Negative operating cash flow persisted across FY2024-FY2026, reaching-$1.81M in FY2026, while financing supplied$3.07M ; the modest recovery therefore came from external funding rather than operations. That funding pattern also explains why cash recovery moved from$720K to$1.22M without positive operating cash generation.
FY2026 revenue contracted
From FY2024 to FY2026, total equity fell from
Financial Health Signals
Scored against emerging companies for FY2026. 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 Rocky Mountain Chocolate Factory'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.
Not available for Rocky Mountain Chocolate Factory, and counted as zero in the overall score.
Rocky Mountain Chocolate Factory scores 0.66, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($11.5M) relative to total liabilities ($15.0M). 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.
Rocky Mountain Chocolate Factory passes 2 of 8 computable financial strength tests (1 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), 1 of 2 efficiency signals pass.
Rocky Mountain Chocolate Factory reported a net loss of $5K while operations used $1.8M of cash. With neither figure positive, the ratio between the two carries no quality signal.
Rocky Mountain Chocolate Factory reported an operating loss of $3.6M against $840K 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
Rocky Mountain Chocolate Factory generated $27.5M in revenue in fiscal year 2026. This represents a decrease of 7.0% from the prior year.
Rocky Mountain Chocolate Factory's EBITDA was -$2.2M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 56.3% from the prior year.
Rocky Mountain Chocolate Factory reported -$5K in net income in fiscal year 2026. This represents an increase of 25.5% from the prior year.
Rocky Mountain Chocolate Factory earned -$0.56 per diluted share (EPS) in fiscal year 2026. This represents an increase of 34.9% from the prior year.
Cash & Balance Sheet
Rocky Mountain Chocolate Factory recorded an outflow of $2.4M in free cash flow in fiscal year 2026, representing a cash shortfall after capex. This represents an increase of 77.0% from the prior year.
Rocky Mountain Chocolate Factory held $1.2M in cash as of fiscal year 2026; long-term debt is not reported for that period.
Not reported for fiscal year 2026.
Margins & Returns
Rocky Mountain Chocolate Factory's gross margin was 24.9% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is up 5.8 percentage points from the prior year.
Rocky Mountain Chocolate Factory's operating margin was -13.1% in fiscal year 2026, reflecting core business profitability. This is up 7.0 percentage points from the prior year.
Rocky Mountain Chocolate Factory's net profit margin was 0.0% in fiscal year 2026, showing the share of revenue converted to profit. That is unchanged from the prior year.
Rocky Mountain Chocolate Factory's ROE was -0.1% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. That is unchanged from the prior year.
Capital Allocation
Rocky Mountain Chocolate Factory invested $569K in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents a decrease of 84.9% from the prior year.
Not reported for fiscal year 2026.
Not reported for fiscal year 2026.
RMCF Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $27.2M | $27.5M-7.0% | $29.6M+5.8% | $28.0M-8.2% | $30.4M+3.2% | $29.5M+25.6% | $23.5M-26.3% | $31.8M-7.8% | $34.5M-9.3% | $38.1M-0.6% | $38.3M-5.3% | $40.5M-2.5% | $41.5M+5.9% | $39.2M+7.9% | $36.3M |
| Cost of Revenue | $21.0M | $20.6M-13.7% | $23.9M+15.8% | $20.7M+1.0% | $20.5M+9.9% | $18.6M+17.8% | $15.8M-13.3% | $18.2M-11.6% | $20.6M-2.7% | $21.2M+2.1% | $20.7M-0.6% | $20.9M+1.2% | $20.6M+5.1% | $19.6M+3.5% | $19.0M |
| Gross Profit | $6.3M | $6.9M+21.0% | $5.7M-22.4% | $7.3M+82.3% | $4.0M-18.7% | $4.9M+60.9% | $3.1M-52.9% | $6.5M-6.6% | $7.0M-22.5% | $9.0M-1.6% | $9.1M-12.9% | $10.5M-11.7% | $11.9M-1.4% | $12.0M-30.6% | $17.4M |
| SG&A Expenses | $5.7M | $5.4M-13.8% | $6.3M-5.5% | $6.7M-35.4% | $10.3M+38.5% | $7.5M+51.0% | $4.9M-13.9% | $5.7M+67.1% | $3.4M-12.1% | $3.9M-2.5% | $4.0M-14.1% | $4.7M-3.5% | $4.8M-3.4% | $5.0M+30.1% | $3.8M |
| Operating Income | -$4.4M | -$3.6M+39.6% | -$5.9M-21.2% | -$4.9M-0.2% | -$4.9M-604.2% | -$695K+74.6% | -$2.7M-296.1% | $1.4M-53.7% | $3.0M-42.4% | $5.2M-5.5% | $5.5M+48.8% | $3.7M-37.8% | $6.0M+13.9% | $5.2M+106.1% | $2.5M |
| Interest Expense | $860K | $840K+85.0% | $454K+756.6% | $53K+408.1% | $10K | $0-100.0% | $94K+393.8% | $19K-73.1% | $71K-41.6% | $121K-28.8% | $170K-21.4% | $217K-10.9% | $243K+393.0% | $49K | N/A |
| Income Tax | $187K | $187K | $0 | $0-100.0% | $614K+3751.2% | -$17K+97.7% | -$745K-302.3% | $369K-48.6% | $717K-66.8% | $2.2M+11.0% | $1.9M+844.3% | -$261K-112.8% | $2.0M-5.4% | $2.2M+74.7% | $1.2M |
| Net Income | -$849K | -$5K+25.5% | -$6K-31.3% | -$5K+99.9% | -$5.7M-1562.5% | -$342K+62.0% | -$900K-187.0% | $1.0M-53.8% | $2.2M-24.5% | $3.0M-14.1% | $3.5M-22.0% | $4.4M+12.4% | $3.9M-10.3% | $4.4M+197.1% | $1.5M |
| EPS (Diluted) | — | -$0.56+34.9% | -$0.86-30.3% | -$0.66 | -$0.91-1416.7% | -$0.06+60.0% | -$0.15-188.2% | $0.17-54.1% | $0.37-26.0% | $0.50-13.8% | $0.58-20.5% | $0.73+19.7% | $0.61-10.3% | $0.68+183.3% | $0.24 |
Not reported in any period shown, so not listed: R&D Expenses.
TTM is the trailing twelve months, Q2 FY2026 through Q1 FY2027, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
RMCF Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $20.2M-4.5% | $21.2M+2.9% | $20.6M-6.4% | $22.0M-18.2% | $26.9M+7.7% | $25.0M-10.3% | $27.8M+6.1% | $26.2M-8.4% | $28.6M-2.7% | $29.4M-3.0% | $30.3M-11.2% | $34.1M-2.9% | $35.2M+47.5% | $23.8M |
| Current Assets | $8.8M-4.9% | $9.2M-3.9% | $9.6M-14.3% | $11.2M-25.3% | $15.0M+17.4% | $12.8M-6.1% | $13.6M-4.6% | $14.3M-8.4% | $15.6M+2.8% | $15.2M-1.9% | $15.4M-12.6% | $17.7M+4.8% | $16.8M | N/A |
| Cash & Equivalents | $1.2M+69.2% | $720K-65.4% | $2.1M-55.9% | $4.7M-37.8% | $7.6M+34.7% | $5.6M+16.8% | $4.8M-10.4% | $5.4M-11.3% | $6.1M+5.1% | $5.8M-6.7% | $6.2M-13.4% | $7.2M+22.1% | $5.9M+10.1% | $5.3M |
| Inventory | $4.1M-12.4% | $4.6M+6.2% | $4.4M+19.7% | $3.6M-15.3% | $4.3M+5.8% | $4.1M+8.3% | $3.8M-12.2% | $4.3M-11.8% | $4.8M-2.7% | $5.0M+2.8% | $4.8M+1.1% | $4.8M+8.5% | $4.4M | N/A |
| Accounts Receivable | $2.5M-25.3% | $3.4M+54.8% | $2.2M+7.0% | $2.1M+7.9% | $1.9M-5.1% | $2.0M-50.4% | $4.0M+1.4% | $4.0M+2.5% | $3.9M+1.1% | $3.9M+1.5% | $3.8M-11.5% | $4.3M-17.4% | $5.2M | N/A |
| Goodwill | $576K0.0% | $576K0.0% | $576K+0.1% | $576K-21.1% | $730K0.0% | $730K-30.3% | $1.0M0.0% | $1.0M0.0% | $1.0M0.0% | $1.0M0.0% | $1.0M-64.8% | $3.0M-2.8% | $3.1M | N/A |
| Total Liabilities | $15.0M+5.5% | $14.2M+42.8% | $9.9M+30.5% | $7.6M+1.8% | $7.5M+25.0% | $6.0M-29.3% | $8.5M+45.1% | $5.8M-28.5% | $8.2M-23.0% | $10.6M-10.5% | $11.8M-17.8% | $14.4M-5.9% | $15.3M+137.4% | $6.4M |
| Current Liabilities | $6.8M-1.2% | $6.9M-14.9% | $8.1M+61.1% | $5.0M-5.7% | $5.3M+40.5% | $3.8M-32.6% | $5.6M+18.4% | $4.7M-18.5% | $5.8M-27.9% | $8.1M+0.7% | $8.0M-3.4% | $8.3M+4.1% | $8.0M | N/A |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $1.2M-53.5% | $2.5M-34.0% | $3.8M-24.6% | $5.1M-19.2% | $6.3M | N/A |
| Total Equity | $5.2M-25.0% | $7.0M-34.4% | $10.6M-26.0% | $14.4M-25.9% | $19.4M+2.3% | $19.0M-2.0% | $19.4M-5.1% | $20.4M-0.5% | $20.5M+8.8% | $18.8M+1.9% | $18.5M-6.4% | $19.7M-0.6% | $19.9M+14.2% | $17.4M |
| Retained Earnings | -$9.9M-84.6% | -$5.4M-834.1% | $734K-85.0% | $4.9M-53.7% | $10.6M-3.7% | $11.0M-7.6% | $11.9M-13.4% | $13.7M-4.3% | $14.3M+8.0% | $13.3M+1.1% | $13.1M+14.0% | $11.5M+11.4% | $10.3M+19.7% | $8.6M |
RMCF Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$2.5M | -$1.8M+72.6% | -$6.6M-170.8% | -$2.4M-15.8% | -$2.1M-173.6% | $2.9M+4144.0% | $67K-98.5% | $4.5M+10.9% | $4.0M-15.6% | $4.8M-10.6% | $5.3M-21.6% | $6.8M+15.6% | $5.9M+3.7% | $5.7M-10.9% | $6.4M |
| Capital Expenditures | $660K | $569K-84.9% | $3.8M+24.7% | $3.0M+201.7% | $1.0M+6.2% | $941K+529.6% | $150K-84.8% | $984K+60.3% | $614K+12.6% | $545K-56.0% | $1.2M+66.6% | $743K+18.6% | $627K-75.1% | $2.5M+239.0% | $743K |
| Free Cash Flow | -$3.2M | -$2.4M+77.0% | -$10.4M-90.0% | -$5.5M-75.7% | -$3.1M-261.9% | $1.9M+2432.7% | -$82K-102.4% | $3.5M+2.0% | $3.4M-19.3% | $4.2M+3.2% | $4.1M-32.5% | $6.0M+15.3% | $5.2M+66.7% | $3.1M-44.0% | $5.6M |
| Investing Cash Flow | -$851K | -$764K+53.8% | -$1.7M-14.1% | -$1.4M-88.8% | -$768K-26.9% | -$605K-752.2% | -$71K+92.2% | -$911K-80.1% | -$506K-49.1% | -$340K+73.7% | -$1.3M-86.3% | -$694K-430.2% | $210K+102.3% | -$9.2M-855.0% | -$965K |
| Financing Cash Flow | $3.1M | $3.1M-55.4% | $6.9M+451.0% | $1.3M | $0+100.0% | -$299K-136.7% | $815K+119.9% | -$4.1M+2.2% | -$4.2M-1.8% | -$4.1M+7.2% | -$4.4M+37.0% | -$7.1M-47.5% | -$4.8M-217.0% | $4.1M+197.4% | -$4.2M |
| Dividends Paid | N/A | N/A | N/A | $0 | $0-100.0% | $61K-91.5% | $722K-74.8% | $2.9M+0.9% | $2.8M+0.8% | $2.8M+0.6% | $2.8M-1.2% | $2.8M+4.7% | $2.7M+1.1% | $2.7M+2.2% | $2.6M |
| Share Buybacks | N/A | N/A | N/A | $0 | $0-100.0% | $238K | $0-100.0% | $57K | N/A | N/A | $352K-88.4% | $3.0M-3.1% | $3.1M | N/A | $1.7M |
TTM is the trailing twelve months, Q2 FY2026 through Q1 FY2027, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
RMCF Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 24.9%+5.8pp | 19.1%-7.0pp | 26.1%+13.0pp | 13.2%-3.6pp | 16.7%+3.7pp | 13.0%-7.4pp | 20.4%+0.3pp | 20.2%-3.5pp | 23.6%-0.3pp | 23.9%-2.1pp | 25.9%-2.7pp | 28.6%-2.1pp | 30.8%-17.0pp | 47.8% |
| Operating Margin | -13.1%+7.0pp | -20.1%-2.5pp | -17.5%-1.5pp | -16.1%-13.7pp | -2.4%+9.3pp | -11.6%-16.0pp | 4.4%-4.3pp | 8.7%-5.0pp | 13.7%-0.7pp | 14.4%+5.3pp | 9.2%-5.2pp | 14.4%+1.0pp | 13.4%+6.4pp | 7.0% |
| Net Margin | 0.0%0.0pp | 0.0%0.0pp | 0.0%+18.6pp | -18.7%-17.5pp | -1.2%+2.7pp | -3.8%-7.1pp | 3.3%-3.2pp | 6.5%-1.3pp | 7.8%-1.2pp | 9.0%-1.9pp | 10.9%+1.4pp | 9.5%-1.7pp | 11.2%+7.1pp | 4.1% |
| Return on Equity | -0.1%0.0pp | -0.1%-0.1pp | 0.0%+39.5pp | -39.5%-37.8pp | -1.8%+3.0pp | -4.7%-10.1pp | 5.3%-5.6pp | 11.0%-3.5pp | 14.5%-3.9pp | 18.3%-5.6pp | 23.9%+4.0pp | 20.0%-2.2pp | 22.1%+13.6pp | 8.5% |
| Return on Assets | 0.0%0.0pp | 0.0%0.0pp | 0.0%+25.8pp | -25.8%-24.6pp | -1.3%+2.3pp | -3.6%-7.3pp | 3.7%-4.8pp | 8.5%-1.8pp | 10.3%-1.4pp | 11.7%-2.9pp | 14.6%+3.1pp | 11.5%-1.0pp | 12.5%+6.3pp | 6.2% |
| Current Ratio | 1.29-0.1x | 1.34+0.2x | 1.19-1.0x | 2.24-0.6x | 2.82-0.6x | 3.38+1.0x | 2.43-0.6x | 3.01+0.3x | 2.68+0.8x | 1.880.0x | 1.93-0.2x | 2.130.0x | 2.12 | N/A |
| Debt-to-Equity | 2.87+0.8x | 2.04+1.1x | 0.93+0.4x | 0.53+0.1x | 0.39+0.1x | 0.32-0.1x | 0.44+0.2x | 0.29+0.2x | 0.06-0.1x | 0.13-0.1x | 0.21-0.1x | 0.26-0.1x | 0.32-0.1x | 0.37 |
| FCF Margin | -8.6%+26.4pp | -35.0%-15.5pp | -19.5%-9.3pp | -10.2%-16.7pp | 6.5%+6.9pp | -0.4%-11.2pp | 10.9%+1.0pp | 9.8%-1.2pp | 11.1%+0.4pp | 10.7%-4.3pp | 14.9%+2.3pp | 12.6%+4.6pp | 8.0%-7.4pp | 15.5% |
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Where Rocky Mountain Chocolate Factory Ranks
Frequently Asked Questions
What is Rocky Mountain Chocolate Factory's annual revenue?
Rocky Mountain Chocolate Factory (RMCF) reported $27.5M in total revenue for fiscal year 2026. This represents a -7.0% 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 Rocky Mountain Chocolate Factory's revenue growing?
Rocky Mountain Chocolate Factory (RMCF) revenue declined by 7.0% year-over-year, from $29.6M to $27.5M in fiscal year 2026.
Is Rocky Mountain Chocolate Factory profitable?
No, Rocky Mountain Chocolate Factory (RMCF) reported a net income of -$5K in fiscal year 2026, with a net profit margin of 0.0%.
What is Rocky Mountain Chocolate Factory's EBITDA?
Rocky Mountain Chocolate Factory (RMCF) had EBITDA of -$2.2M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
What is Rocky Mountain Chocolate Factory's gross margin?
Rocky Mountain Chocolate Factory (RMCF) had a gross margin of 24.9% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.
What is Rocky Mountain Chocolate Factory's operating margin?
Rocky Mountain Chocolate Factory (RMCF) had an operating margin of -13.1% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.
What is Rocky Mountain Chocolate Factory's net profit margin?
Rocky Mountain Chocolate Factory (RMCF) had a net profit margin of 0.0% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
What is Rocky Mountain Chocolate Factory's return on equity (ROE)?
Rocky Mountain Chocolate Factory (RMCF) has a return on equity of -0.1% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
What is Rocky Mountain Chocolate Factory's free cash flow?
Rocky Mountain Chocolate Factory (RMCF) recorded an outflow of $2.4M in free cash flow during fiscal year 2026. This represents a 77.0% 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 Rocky Mountain Chocolate Factory's operating cash flow?
Rocky Mountain Chocolate Factory (RMCF) recorded an outflow of $1.8M in operating cash flow during fiscal year 2026, representing cash used by core business activities.
What are Rocky Mountain Chocolate Factory's total assets?
Rocky Mountain Chocolate Factory (RMCF) had $20.2M in total assets as of fiscal year 2026, including both current and long-term assets.
What are Rocky Mountain Chocolate Factory's capital expenditures?
Rocky Mountain Chocolate Factory (RMCF) invested $569K in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
What is Rocky Mountain Chocolate Factory's current ratio?
Rocky Mountain Chocolate Factory (RMCF) had a current ratio of 1.29 as of fiscal year 2026, which is considered adequate.
What is Rocky Mountain Chocolate Factory's debt-to-equity ratio?
Rocky Mountain Chocolate Factory (RMCF) had a debt-to-equity ratio of 2.87 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Rocky Mountain Chocolate Factory's return on assets (ROA)?
Rocky Mountain Chocolate Factory (RMCF) had a return on assets of 0.0% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
What is Rocky Mountain Chocolate Factory's cash runway?
Based on fiscal year 2026 data, Rocky Mountain Chocolate Factory (RMCF) had $1.2M in cash against an annual operating cash burn of $1.8M. This gives an estimated cash runway of approximately 8 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 Rocky Mountain Chocolate Factory's Altman Z-Score?
Rocky Mountain Chocolate Factory (RMCF) has an Altman Z-Score of 0.66, 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 Rocky Mountain Chocolate Factory's Piotroski F-Score?
Rocky Mountain Chocolate Factory (RMCF) has a Piotroski F-Score of 2 out of 8 computable signals; 1 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 Rocky Mountain Chocolate Factory's earnings high quality?
Rocky Mountain Chocolate Factory (RMCF) reported a net loss of $5K while operations used $1.8M 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.
Can Rocky Mountain Chocolate Factory cover its interest payments?
Rocky Mountain Chocolate Factory (RMCF) reported an operating loss of $3.6M against $840K 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 Rocky Mountain Chocolate Factory?
Rocky Mountain Chocolate Factory (RMCF) scores 34 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.