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

Avidity Biosciences, Inc. (RNAM) reported diluted earnings per share of $-4.97 for fiscal year 2025. This represents a -72.0% 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.

Avidity Biosciences, Inc. Financials

RNAM

Source SEC Filings (10-K/10-Q) Data as of Dec 31, 2025 Currency USD FYE December

This page shows Avidity Biosciences, Inc. (RNAM) 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 RNAM FY2025 2026-04-22

FY2025 was financed by new capital, not operating revenue, as research spending scaled faster than internal cash generation.

The balance sheet looks liquid on the surface, but cash rose to $382.5M even as free cash flow fell to -$663.8M. That happened because financing inflows of $851.0M replaced operating cash the business did not generate, so FY2025's larger asset base came from outside capital rather than self-funding.

With revenue of $18.8M, reported sales are still tiny relative to the cost base. R&D spend of $559.2M and SG&A of $205.5M show a development-stage operating model where the company is funding research capacity, not supporting a mature commercial engine.

Short-term liquidity remains ample, with a current ratio of 9.2x. Total liabilities of $269.5M sit well below assets of $2.0B, so the near-term issue is funding burn rather than servicing leverage. The deeper structural signal is equity-funded scaling: share count roughly doubled over two years as the company financed larger research outlays without meaningful debt.

Financial Health Signals

Financial Health Score 53/100

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 Avidity Biosciences, 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.

Cash Runway

Dilution

R&D Intensity

Revenue Progress

Burn Trend

Balance Sheet

Altman Z-Score Safe

23.66

Avidity Biosciences, Inc. scores 23.66, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($11.2B) relative to total liabilities ($269.4M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

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

Piotroski F-Score Partial

2/7

Avidity Biosciences, Inc. passes 2 of 7 computable financial strength tests (2 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), both operating efficiency signals pass.

Earnings Quality Low Quality

0.95x

For every $1 of reported earnings, Avidity Biosciences, Inc. generates $0.95 in operating cash flow (-$650.4M OCF vs -$684.6M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.

Key Financial Metrics

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Earnings & Revenue

Revenue

$18.8M

YoY+72.1%

5Y CAGR+22.5%

Avidity Biosciences, Inc. generated $18.8M in revenue in fiscal year 2025. This represents an increase of 72.1% from the prior year.

EBITDA

-$741.8M

YoY-97.2%

Avidity Biosciences, Inc.'s EBITDA was -$741.8M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 97.2% from the prior year.

Net Income

-$684.6M

YoY-112.4%

Avidity Biosciences, Inc. reported -$684.6M in net income in fiscal year 2025. This represents a decrease of 112.4% from the prior year.

EPS (Diluted)

$-4.97

YoY-72.0%

Avidity Biosciences, Inc. earned $-4.97 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 72.0% from the prior year.

Cash & Balance Sheet

Free Cash Flow

-$663.8M

YoY-115.6%

Avidity Biosciences, Inc. generated -$663.8M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 115.6% from the prior year.

Cash & Debt

$382.5M

YoY+74.0%

5Y CAGR+3.5%

Avidity Biosciences, Inc. held $382.5M in cash against $0 in long-term debt as of fiscal year 2025.

Dividends Per Share

N/A

Shares Outstanding

155M

YoY+29.1%

5Y CAGR+32.8%

Avidity Biosciences, Inc. had 155M shares outstanding in fiscal year 2025. This represents an increase of 29.1% from the prior year.

Margins & Returns

Gross Margin

N/A

Operating Margin

-3977.3%

YoY-499.9pp

5Y CAGR-3324.9pp

Avidity Biosciences, Inc.'s operating margin was -3977.3% in fiscal year 2025, reflecting core business profitability. This is down 499.9 percentage points from the prior year.

Net Margin

-3650.4%

YoY-692.7pp

5Y CAGR-2996.9pp

Avidity Biosciences, Inc.'s net profit margin was -3650.4% in fiscal year 2025, showing the share of revenue converted to profit. This is down 692.7 percentage points from the prior year.

Return on Equity

-40.5%

YoY-17.9pp

5Y CAGR-26.1pp

Avidity Biosciences, Inc.'s ROE was -40.5% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 17.9 percentage points from the prior year.

Capital Allocation

R&D Spending

$559.2M

YoY+84.2%

5Y CAGR+71.6%

Avidity Biosciences, Inc. invested $559.2M in research and development in fiscal year 2025. This represents an increase of 84.2% from the prior year.

Share Buybacks

N/A

Capital Expenditures

$13.3M

YoY+88.5%

5Y CAGR+64.9%

Avidity Biosciences, Inc. invested $13.3M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 88.5% from the prior year.

RNAM Income Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Revenue	$18.8M+72.1%	$10.9M+14.0%	$9.6M+3.6%	$9.2M-1.1%	$9.3M+37.4%	$6.8M
Cost of Revenue	N/A	N/A	N/A	N/A	N/A	N/A
Gross Profit	N/A	N/A	N/A	N/A	N/A	N/A
R&D Expenses	$559.2M+84.2%	$303.6M+59.0%	$191.0M+27.0%	$150.4M+48.6%	$101.2M+169.1%	$37.6M
SG&A Expenses	$205.5M+138.3%	$86.2M+59.1%	$54.2M+43.6%	$37.7M+44.0%	$26.2M+94.6%	$13.5M
Operating Income	-$745.9M-96.9%	-$378.9M-60.8%	-$235.6M-31.7%	-$178.9M-51.6%	-$118.1M-166.6%	-$44.3M
Interest Expense	N/A	N/A	N/A	$0	$0-100.0%	$209K
Income Tax	$0	$0	$0	$0	$0	$0
Net Income	-$684.6M-112.4%	-$322.3M-51.9%	-$212.2M-22.0%	-$174.0M-47.4%	-$118.0M-166.1%	-$44.4M
EPS (Diluted)	$-4.97-72.0%	$-2.89+0.7%	$-2.91+12.9%	$-3.34-17.2%	$-2.85-39.0%	$-2.05

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Revenue	$860K-93.1%	$12.5M+224.3%	$3.8M+144.6%	$1.6M-47.1%	$3.0M+27.3%	$2.3M+14.2%	$2.0M-42.3%	$3.5M
Cost of Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Gross Profit	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
R&D Expenses	$166.6M+7.5%	$154.9M+12.2%	$138.1M+38.8%	$99.5M+4.0%	$95.6M+23.9%	$77.2M+20.7%	$63.9M-4.3%	$66.8M
SG&A Expenses	$88.7M+91.5%	$46.3M+25.7%	$36.9M+9.7%	$33.6M+18.6%	$28.3M+21.8%	$23.3M+12.3%	$20.7M+49.2%	$13.9M
Operating Income	-$254.5M-34.8%	-$188.8M-10.3%	-$171.1M-30.1%	-$131.5M-8.7%	-$121.0M-23.3%	-$98.1M-18.8%	-$82.6M-7.0%	-$77.2M
Interest Expense	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Income Tax	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Income	-$237.1M-35.9%	-$174.4M-10.9%	-$157.3M-35.9%	-$115.8M-13.2%	-$102.3M-27.2%	-$80.4M-13.6%	-$70.8M-2.8%	-$68.9M
EPS (Diluted)	N/A	$-1.27-5.0%	$-1.21-34.4%	$-0.90	N/A	$-0.650.0%	$-0.65+17.7%	$-0.79

RNAM Balance Sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Total Assets	$2.0B+25.2%	$1.6B+148.8%	$628.6M-1.6%	$638.8M+49.4%	$427.6M+28.1%	$333.9M
Current Assets	$1.8B+16.6%	$1.5B+152.3%	$611.3M-1.9%	$622.9M+51.5%	$411.1M+24.0%	$331.7M
Cash & Equivalents	$382.5M+74.0%	$219.9M+18.8%	$185.1M-45.6%	$340.4M+6.2%	$320.4M-0.3%	$321.5M
Inventory	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	N/A	$0-100.0%	$1.1M-53.3%	$2.4M	N/A	N/A
Goodwill	N/A	N/A	N/A	N/A	N/A	N/A
Total Liabilities	$269.4M+93.9%	$138.9M+8.7%	$127.8M+110.4%	$60.7M+31.6%	$46.1M+66.8%	$27.7M
Current Liabilities	$195.4M+99.4%	$98.0M+21.5%	$80.7M+55.4%	$51.9M+75.0%	$29.7M+103.3%	$14.6M
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	$1.7B+18.5%	$1.4B+184.6%	$500.8M-13.4%	$578.1M+51.6%	$381.4M+24.6%	$306.2M
Retained Earnings	-$1.6B-76.7%	-$893.1M-56.5%	-$570.8M-59.2%	-$358.5M-94.3%	-$184.5M-177.4%	-$66.5M

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Total Assets	$2.0B-8.3%	$2.1B+55.9%	$1.4B-6.2%	$1.5B-6.7%	$1.6B-4.7%	$1.6B+21.8%	$1.3B+41.6%	$951.5M
Current Assets	$1.8B-8.5%	$2.0B+57.2%	$1.3B-12.9%	$1.4B-7.0%	$1.5B-4.9%	$1.6B+22.1%	$1.3B+42.2%	$934.5M
Cash & Equivalents	$382.5M+9.2%	$350.2M+43.6%	$243.9M-4.1%	$254.2M+15.6%	$219.9M-40.6%	$370.2M-35.7%	$575.8M+22.1%	$471.4M
Inventory	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	N/A	N/A	N/A	N/A	$0	$0	$0-100.0%	$1.6M
Goodwill	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Total Liabilities	$269.4M+8.7%	$247.9M+40.7%	$176.3M+35.2%	$130.4M-6.2%	$138.9M+1.1%	$137.4M+8.7%	$126.4M+4.8%	$120.6M
Current Liabilities	$195.4M+15.1%	$169.9M+25.8%	$135.1M+59.1%	$84.9M-13.4%	$98.0M+7.3%	$91.3M+8.5%	$84.2M+12.4%	$75.0M
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	$1.7B-10.5%	$1.9B+58.2%	$1.2B-10.2%	$1.3B-6.8%	$1.4B-5.2%	$1.5B+23.1%	$1.2B+47.0%	$830.9M
Retained Earnings	-$1.6B-17.7%	-$1.3B-15.0%	-$1.2B-15.6%	-$1.0B-13.0%	-$893.1M-12.9%	-$790.8M-11.3%	-$710.4M-11.1%	-$639.6M

RNAM Cash Flow Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Operating Cash Flow	-$650.4M-116.2%	-$300.9M-152.7%	-$119.1M+12.6%	-$136.3M-43.7%	-$94.8M-155.4%	-$37.1M
Capital Expenditures	$13.3M+88.5%	$7.1M+67.1%	$4.2M+49.8%	$2.8M-24.5%	$3.7M+242.5%	$1.1M
Free Cash Flow	-$663.8M-115.6%	-$307.9M-149.8%	-$123.3M+11.4%	-$139.1M-41.1%	-$98.6M-157.9%	-$38.2M
Investing Cash Flow	-$38.0M+95.5%	-$854.2M-556.7%	-$130.1M+31.5%	-$190.0M-130.2%	-$82.5M-959.9%	-$7.8M
Financing Cash Flow	$851.0M-28.6%	$1.2B+1170.3%	$93.9M-72.9%	$346.2M+96.3%	$176.3M-35.2%	$272.0M
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	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Operating Cash Flow	-$169.8M-8.7%	-$156.2M+21.8%	-$199.7M-60.0%	-$124.8M-25.0%	-$99.9M-52.2%	-$65.6M-0.9%	-$65.0M+7.6%	-$70.4M
Capital Expenditures	$5.5M+674.0%	$712K-78.7%	$3.3M-10.9%	$3.8M-4.2%	$3.9M+129.8%	$1.7M+220.9%	$531K-42.0%	$915K
Free Cash Flow	-$175.3M-11.7%	-$156.9M+22.7%	-$203.0M-57.9%	-$128.6M-23.9%	-$103.8M-54.2%	-$67.3M-2.7%	-$65.5M+8.1%	-$71.3M
Investing Cash Flow	$207.2M+135.2%	-$587.9M-417.0%	$185.5M+18.0%	$157.2M+344.9%	-$64.2M+86.7%	-$482.4M-75.5%	-$274.9M-739.4%	-$32.7M
Financing Cash Flow	-$5.1M-100.6%	$850.4M+22438.2%	$3.8M+94.8%	$1.9M-85.9%	$13.7M-96.0%	$342.5M-23.3%	$446.7M+14.7%	$389.4M
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

RNAM Financial Ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Gross Margin	N/A	N/A	N/A	N/A	N/A	N/A
Operating Margin	-3977.3%-499.9pp	-3477.4%-1013.0pp	-2464.4%-524.8pp	-1939.6%-673.8pp	-1265.8%-613.5pp	-652.4%
Net Margin	-3650.4%-692.7pp	-2957.7%-737.8pp	-2219.9%-333.5pp	-1886.3%-620.9pp	-1265.4%-611.9pp	-653.5%
Return on Equity	-40.5%-17.9pp	-22.6%+19.8pp	-42.4%-12.3pp	-30.1%+0.8pp	-30.9%-16.5pp	-14.5%
Return on Assets	-35.0%-14.4pp	-20.6%+13.2pp	-33.8%-6.5pp	-27.2%+0.4pp	-27.6%-14.3pp	-13.3%
Current Ratio	9.20-6.5	15.73+8.2	7.58-4.4	12.00-1.9	13.86-8.9	22.74
Debt-to-Equity	0.16+0.1	0.10-0.2	0.26+0.2	0.10-0.0	0.12+0.0	0.09
FCF Margin	-3539.1%-713.2pp	-2825.9%-1536.2pp	-1289.7%+218.3pp	-1507.9%-451.2pp	-1056.8%-493.8pp	-563.0%

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Gross Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Margin	-29590.5%-28077.0pp	-1513.5%+2935.2pp	-4448.7%+3912.2pp	-8360.9%-4291.3pp	-4069.6%+131.3pp	-4200.9%-160.5pp	-4040.4%-1861.8pp	-2178.6%
Net Margin	-27569.9%-26171.6pp	-1398.3%+2691.0pp	-4089.3%+3270.7pp	-7360.0%-3920.5pp	-3439.5%+2.2pp	-3441.7%+20.1pp	-3461.8%-1518.4pp	-1943.4%
Return on Equity	-14.0%-4.8pp	-9.3%+3.9pp	-13.2%-4.5pp	-8.7%-1.5pp	-7.2%-1.8pp	-5.3%+0.5pp	-5.8%+2.5pp	-8.3%
Return on Assets	-12.1%-3.9pp	-8.2%+3.3pp	-11.5%-3.6pp	-7.9%-1.4pp	-6.5%-1.6pp	-4.9%+0.3pp	-5.3%+2.0pp	-7.2%
Current Ratio	9.20-2.4	11.57+2.3	9.26-7.6	16.91+1.2	15.73-2.0	17.76+2.0	15.78+3.3	12.47
Debt-to-Equity	0.16+0.0	0.13-0.0	0.15+0.0	0.100.0	0.100.0	0.09-0.0	0.10-0.0	0.15
FCF Margin	-20381.9%-19124.3pp	-1257.6%+4019.5pp	-5277.1%+2897.3pp	-8174.3%-4683.3pp	-3491.0%-609.2pp	-2881.8%+322.8pp	-3204.7%-1192.4pp	-2012.3%

Frequently Asked Questions

What is Avidity Biosciences, Inc.'s annual revenue?

Avidity Biosciences, Inc. (RNAM) reported $18.8M in total revenue for fiscal year 2025. This represents a 72.1% 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 Avidity Biosciences, Inc.'s revenue growing?

Avidity Biosciences, Inc. (RNAM) revenue grew by 72.1% year-over-year, from $10.9M to $18.8M in fiscal year 2025.

Is Avidity Biosciences, Inc. profitable?

No, Avidity Biosciences, Inc. (RNAM) reported a net income of -$684.6M in fiscal year 2025, with a net profit margin of -3650.4%.

What is Avidity Biosciences, Inc.'s EBITDA?

Avidity Biosciences, Inc. (RNAM) had EBITDA of -$741.8M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

What is Avidity Biosciences, Inc.'s operating margin?

Avidity Biosciences, Inc. (RNAM) had an operating margin of -3977.3% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

What is Avidity Biosciences, Inc.'s net profit margin?

Avidity Biosciences, Inc. (RNAM) had a net profit margin of -3650.4% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

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

Avidity Biosciences, Inc. (RNAM) has a return on equity of -40.5% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Avidity Biosciences, Inc.'s free cash flow?

Avidity Biosciences, Inc. (RNAM) generated -$663.8M in free cash flow during fiscal year 2025. This represents a -115.6% 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 Avidity Biosciences, Inc.'s operating cash flow?

Avidity Biosciences, Inc. (RNAM) generated -$650.4M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Avidity Biosciences, Inc.'s total assets?

Avidity Biosciences, Inc. (RNAM) had $2.0B in total assets as of fiscal year 2025, including both current and long-term assets.

What are Avidity Biosciences, Inc.'s capital expenditures?

Avidity Biosciences, Inc. (RNAM) invested $13.3M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

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

Avidity Biosciences, Inc. (RNAM) invested $559.2M in research and development during fiscal year 2025.

How many shares does Avidity Biosciences, Inc. have outstanding?

Avidity Biosciences, Inc. (RNAM) had 155M shares outstanding as of fiscal year 2025.

What is Avidity Biosciences, Inc.'s current ratio?

Avidity Biosciences, Inc. (RNAM) had a current ratio of 9.20 as of fiscal year 2025, which is generally considered healthy.

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

Avidity Biosciences, Inc. (RNAM) had a debt-to-equity ratio of 0.16 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

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

Avidity Biosciences, Inc. (RNAM) had a return on assets of -35.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Avidity Biosciences, Inc.'s cash runway?

Based on fiscal year 2025 data, Avidity Biosciences, Inc. (RNAM) had $382.5M in cash against an annual operating cash burn of $650.4M. This gives an estimated cash runway of approximately 7 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 Avidity Biosciences, Inc.'s Altman Z-Score?

Avidity Biosciences, Inc. (RNAM) has an Altman Z-Score of 23.66, placing it in the Safe Zone (low 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 Avidity Biosciences, Inc.'s Piotroski F-Score?

Avidity Biosciences, Inc. (RNAM) has a Piotroski F-Score of 2 out of 7 computable signals; 2 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 Avidity Biosciences, Inc.'s earnings high quality?

Avidity Biosciences, Inc. (RNAM) has an earnings quality ratio of 0.95x, 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.

How financially healthy is Avidity Biosciences, Inc.?

Avidity Biosciences, Inc. (RNAM) scores 53 out of 100 on our Financial Health Score, indicating moderate 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.