What is TFC-PI's earnings per share (EPS)?

TFC-PI (TFC-PI) reported diluted earnings per share of $3.82 for fiscal year 2025. This represents a 13.7% 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.

TFC-PI Financials

TFC-PI

FY2025 annual

Revenue $24.5B -2.1% YoY

Net Income $5.3B +9.6% YoY

EPS (Diluted) $3.82 +13.7% YoY

Free Cash Flow Not reported for FY2025

Source SEC Filings (10-K/10-Q) Data as of Jun 30, 2026 Currency USD FYE December

TFC-PI (TFC-PI) reported $24.5B in revenue for fiscal year 2025, down 2.1% from the prior fiscal year. This page shows its 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 TFC-PI FY2025 2026-04-22

Thin asset returns on a very large balance sheet are the core engine turning modest spreads into meaningful equity earnings.

In FY2025, 0.97% return on assets translated into 8.1% return on equity, showing how this business converts a slim yield on assets into acceptable shareholder earnings through leverage. The quality of that recovery improved too: operating cash flow rose to $5.7B from $2.2B in FY2024, so profit and cash moved back into closer alignment after a weaker cash-conversion year.

The business is still operating with a higher funding-cost regime: interest expense stayed above $10.1B in FY2025 versus $2.3B in FY2022. Even so, net income moved from -$1.0B in FY2023 to $5.3B in FY2025, implying the earnings engine recovered without a return to the cheaper pre-FY2023 funding structure.

The capital posture looks balanced rather than flush: cash ended FY2025 at $36.4B, against $42.0B of long-term debt. Financing cash flow also turned positive at $8.6B while dividends continued at $2.7B, which suggests capital returns were supported partly by renewed balance-sheet funding and not solely by internally generated cash.

Financial Health Signals

Financial health score not available

TFC-PI 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

5/7

TFC-PI passes 5 of 7 computable financial strength tests (2 of the nine could not be computed from available data). All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 2 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality Cash-Backed

1.08x

For every $1 of reported earnings, TFC-PI generates $1.08 in operating cash flow ($5.7B OCF vs $5.3B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Key Financial Metrics

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Earnings & Revenue

Revenue

$24.5B

YoY-2.1%

5Y CAGR+9.6%

10Y CAGR+14.5%

TFC-PI generated $24.5B in revenue in fiscal year 2025. This represents a decrease of 2.1% from the prior year.

Net Income

$5.3B

YoY+9.6%

5Y CAGR+3.4%

10Y CAGR+9.6%

TFC-PI reported $5.3B in net income in fiscal year 2025. This represents an increase of 9.6% from the prior year.

EPS (Diluted)

$3.82

YoY+13.7%

5Y CAGR+4.4%

TFC-PI earned $3.82 per diluted share (EPS) in fiscal year 2025. This represents an increase of 13.7% from the prior year.

EBITDA

Not reported for fiscal year 2025.

Cash & Balance Sheet

Cash & Debt

$36.4B

YoY-8.5%

5Y CAGR+14.0%

10Y CAGR+24.2%

TFC-PI held $36.4B in cash against $42.0B in long-term debt as of fiscal year 2025.

Shares Outstanding

1.25B

YoY-4.3%

5Y CAGR-1.5%

TFC-PI had 1.25B shares outstanding in fiscal year 2025. This represents a decrease of 4.3% from the prior year.

Free Cash Flow

Not reported for fiscal year 2025.

Dividends Per Share

Not reported for fiscal year 2025.

Margins & Returns

Net Margin

21.6%

YoY+2.3pp

5Y CAGR-7.3pp

10Y CAGR-11.9pp

TFC-PI's net profit margin was 21.6% in fiscal year 2025, showing the share of revenue converted to profit. This is up 2.3 percentage points from the prior year.

Return on Equity

8.1%

YoY+0.5pp

5Y CAGR+1.8pp

10Y CAGR+0.4pp

TFC-PI's ROE was 8.1% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 0.5 percentage points from the prior year.

Gross Margin

Not reported for fiscal year 2025.

Operating Margin

Not reported for fiscal year 2025.

Capital Allocation

Share Buybacks

$2.5B

YoY+150.0%

TFC-PI spent $2.5B on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 150.0% from the prior year.

R&D Spending

Not reported for fiscal year 2025.

Capital Expenditures

Not reported for fiscal year 2025.

TFC-PI Income Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

TFC-PI annual income statement

Metric	TTM	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18	FY17	FY16	FY15	FY14	FY13	FY12	FY11
Revenue	$24.2B	$24.5B-2.1%	$25.1B+2.5%	$24.5B+47.0%	$16.6B+20.8%	$13.8B-11.4%	$15.5B+65.2%	$9.4B+15.9%	$8.1B+10.1%	$7.4B+4.4%	$7.1B+11.7%	$6.3B+3.0%	$6.1B-5.6%	$6.5B-5.9%	$6.9B+0.5%	$6.9B
SG&A Expenses	$7.1B	$6.8B+4.0%	$6.6B-2.6%	$6.8B+3.2%	$6.6B-6.3%	$7.0B-14.1%	$8.1B+68.5%	$4.8B+12.1%	$4.3B+2.1%	$4.2B+4.9%	$4.0B+16.1%	$3.5B+9.1%	$3.2B-3.4%	$3.3B+5.4%	$3.1B+14.6%	$2.7B
Interest Expense	$9.7B	$10.1B-7.8%	$11.0B+10.5%	$9.9B+327.7%	$2.3B+202.2%	$768.0M-55.4%	$1.7B-17.8%	$2.1B+45.8%	$1.4B+71.4%	$839.0M+12.6%	$745.0M+1.4%	$735.0M-4.3%	$768.0M-13.8%	$891.0M-15.9%	$1.1B-23.1%	$1.4B
Income Tax	$966.0M	$1.0B+287.4%	-$556.0M-175.3%	$738.0M-41.0%	$1.3B-11.2%	$1.4B+43.5%	$981.0M+25.4%	$782.0M-2.6%	$803.0M-11.9%	$911.0M-13.9%	$1.1B+33.2%	$794.0M-13.8%	$921.0M-40.7%	$1.6B+103.3%	$764.0M+158.1%	$296.0M
Net Income	$5.8B	$5.3B+9.6%	$4.8B+562.3%	-$1.0B-116.7%	$6.3B-2.6%	$6.4B+43.3%	$4.5B+38.8%	$3.2B-0.6%	$3.3B+34.9%	$2.4B-1.1%	$2.4B+15.0%	$2.1B-3.8%	$2.2B+27.5%	$1.7B-14.7%	$2.0B+52.3%	$1.3B
EPS (Diluted)	—	$3.82+13.7%	$3.36+408.3%	-$1.09-124.6%	$4.43-0.9%	$4.47+45.1%	$3.08	$3.71-5.1%	$3.91+42.7%	$2.74-1.1%	$2.77+8.2%	$2.56-5.9%	$2.72+24.2%	$2.19-18.9%	$2.70+47.5%	$1.83

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Revenue	$6.0B+1.9%	$5.9B-4.2%	$6.1B-2.7%	$6.3B+2.1%	$6.2B+2.8%	$6.0B-3.1%	$6.2B-2.7%	$6.4B
SG&A Expenses	$1.8B+3.8%	$1.7B-6.1%	$1.8B+6.6%	$1.7B+2.9%	$1.7B+4.6%	$1.6B-3.8%	$1.7B+2.5%	$1.6B
Interest Expense	$2.3B+4.0%	$2.3B-6.5%	$2.4B-9.1%	$2.7B+3.5%	$2.6B+3.5%	$2.5B-4.2%	$2.6B-5.9%	$2.8B
Income Tax	$262.0M+25.4%	$209.0M-0.5%	$210.0M-26.3%	$285.0M+4.4%	$273.0M-0.4%	$274.0M+3.4%	$265.0M-2.2%	$271.0M
Net Income	$1.6B+4.9%	$1.5B+9.4%	$1.4B-6.7%	$1.5B+17.1%	$1.2B-1.7%	$1.3B-1.2%	$1.3B-11.5%	$1.4B
EPS (Diluted)	$1.23+12.8%	$1.09	N/A	$1.04+15.6%	$0.90+3.4%	$0.87	N/A	$0.99

Not reported in any period shown, so not listed: Cost of Revenue, Gross Profit, R&D Expenses, Operating Income.

TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, 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.

TFC-PI Balance Sheet

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

TFC-PI annual balance sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18	FY17	FY16	FY15	FY14	FY13	FY12	FY11
Total Assets	$547.5B+3.1%	$531.2B-0.8%	$535.3B-3.6%	$555.3B+2.6%	$541.2B+6.3%	$509.2B+7.6%	$473.1B+109.6%	$225.7B+1.8%	$221.6B+1.1%	$219.3B+4.4%	$209.9B+12.4%	$186.8B+2.1%	$183.0B-0.8%	$184.5B+5.7%	$174.6B
Cash & Equivalents	$36.4B-8.5%	$39.8B+29.8%	$30.6B+43.1%	$21.4B+5.5%	$20.3B+7.6%	$18.9B-1.0%	$19.1B+396.0%	$3.8B+30.0%	$3.0B-30.9%	$4.3B+2.7%	$4.2B+79.2%	$2.3B+7.4%	$2.2B-28.8%	$3.0B-15.0%	$3.6B
Goodwill	$17.1B0.0%	$17.1B-0.2%	$17.2B-26.2%	$23.2B+0.8%	$23.0B-5.7%	$24.4B+1.2%	$24.2B+146.0%	$9.8B+2.1%	$9.6B-0.2%	$9.6B+12.8%	$8.5B+24.4%	$6.9B+0.8%	$6.8B+0.1%	$6.8B+11.9%	$6.1B
Total Liabilities	$482.3B+3.2%	$467.5B-1.8%	$476.1B-3.8%	$494.7B+4.8%	$472.0B+7.7%	$438.3B+7.8%	$406.5B+107.9%	$195.5B+1.9%	$191.9B+1.4%	$189.3B+3.7%	$182.6B+12.4%	$162.5B+1.4%	$160.2B-1.9%	$163.3B+3.9%	$157.1B
Long-Term Debt	$42.0B+20.0%	$35.0B-10.2%	$38.9B-9.9%	$43.2B+20.3%	$35.9B-9.3%	$39.6B-4.2%	$41.3B+74.4%	$23.7B+0.3%	$23.6B+7.7%	$22.0B-7.6%	$23.8B+2.0%	$23.3B+8.5%	$21.5B+12.4%	$19.1B-12.3%	$21.8B
Total Equity	$65.2B+2.4%	$63.7B+7.5%	$59.3B-2.1%	$60.5B-12.6%	$69.3B-2.3%	$70.9B+6.5%	$66.6B+120.6%	$30.2B+1.6%	$29.7B-0.8%	$29.9B+9.5%	$27.3B+12.2%	$24.4B+7.0%	$22.8B+7.5%	$21.2B+21.2%	$17.5B
Retained Earnings	$26.1B+9.6%	$23.8B+7.6%	$22.1B-15.9%	$26.3B+14.2%	$23.0B+18.2%	$19.5B-1.8%	$19.8B+9.3%	$18.1B+11.4%	$16.3B+9.8%	$14.8B+10.0%	$13.5B+9.3%	$12.3B+11.5%	$11.0B+9.0%	$10.1B+15.5%	$8.8B

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Total Assets	$556.0B+1.3%	$549.0B+0.3%	$547.5B+0.7%	$543.9B0.0%	$543.8B+1.5%	$535.9B+0.9%	$531.2B+1.5%	$523.4B
Cash & Equivalents	$39.3B+8.5%	$36.2B-0.5%	$36.4B-1.3%	$36.9B-11.1%	$41.5B-1.7%	$42.2B+6.0%	$39.8B+0.3%	$39.6B
Goodwill	$17.1B0.0%	$17.1B0.0%	$17.1B0.0%	$17.1B0.0%	$17.1B0.0%	$17.1B0.0%	$17.1B0.0%	$17.1B
Total Liabilities	$491.9B+1.5%	$484.8B+0.5%	$482.3B+0.9%	$478.2B-0.2%	$479.0B+1.6%	$471.3B+0.8%	$467.5B+2.1%	$457.7B
Long-Term Debt	$43.0B+3.3%	$41.6B-0.8%	$42.0B+0.6%	$41.7B-6.1%	$44.4B+38.7%	$32.0B-8.4%	$35.0B-4.9%	$36.8B
Total Equity	$64.1B-0.2%	$64.2B-1.5%	$65.2B-0.7%	$65.6B+1.2%	$64.8B+0.3%	$64.6B+1.5%	$63.7B-3.1%	$65.7B
Retained Earnings	$27.7B+3.3%	$26.8B+2.8%	$26.1B+2.5%	$25.4B+2.7%	$24.8B+2.1%	$24.3B+2.0%	$23.8B+2.3%	$23.2B

Not reported in any period shown, so not listed: Current Assets, Inventory, Accounts Receivable, Current Liabilities.

TFC-PI Cash Flow Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

TFC-PI annual cash flow statement

Metric	TTM	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18	FY17	FY16	FY15	FY14	FY13	FY12	FY11
Operating Cash Flow	$5.8B	$5.7B+165.2%	$2.2B-74.9%	$8.6B-22.1%	$11.1B+40.4%	$7.9B+6.1%	$7.4B+389.3%	$1.5B-65.0%	$4.3B-6.2%	$4.6B+48.8%	$3.1B-0.5%	$3.1B-2.5%	$3.2B-39.5%	$5.3B+42.9%	$3.7B-18.6%	$4.6B
Capital Expenditures	N/A	N/A	N/A	N/A	$564.0M+27.6%	$442.0M-45.8%	$815.0M+263.8%	$224.0M-38.3%	$363.0M	N/A	N/A	N/A	N/A	N/A	$145.0M-35.3%	$224.0M
Free Cash Flow	N/A	N/A	N/A	N/A	$10.5B+41.2%	$7.5B+12.5%	$6.6B+411.0%	$1.3B-67.5%	$4.0B	N/A	N/A	N/A	N/A	N/A	$3.6B-17.8%	$4.3B
Investing Cash Flow	-$13.2B	-$17.8B-195.5%	$18.6B-18.6%	$22.9B+176.3%	-$30.0B+6.5%	-$32.1B+26.6%	-$43.7B-622.9%	$8.3B+268.2%	-$5.0B+8.3%	-$5.4B-454.3%	-$976.0M+47.2%	-$1.8B+53.9%	-$4.0B+4.6%	-$4.2B+40.3%	-$7.0B+60.5%	-$17.8B
Financing Cash Flow	$5.3B	$8.6B+174.2%	-$11.6B+47.7%	-$22.3B-211.2%	$20.0B-21.8%	$25.6B-28.9%	$36.0B+572.9%	$5.4B+256.4%	$1.5B+373.6%	-$549.0M+70.8%	-$1.9B-1909.6%	$104.0M-89.2%	$965.0M+148.9%	-$2.0B-170.6%	$2.8B-81.6%	$15.2B
Dividends Paid	$2.6B	$2.7B-3.5%	$2.8B0.0%	$2.8B+4.3%	$2.7B+6.9%	$2.5B+2.5%	$2.4B+85.2%	$1.3B+8.7%	$1.2B+19.8%	$1.0B+8.6%	$925.0M+17.2%	$789.0M+18.5%	$666.0M-12.9%	$765.0M+44.1%	$531.0M+19.1%	$446.0M
Share Buybacks	$3.6B	$2.5B+150.0%	$1.0B	$0-100.0%	$250.0M-84.5%	$1.6B	$0	$0-100.0%	$1.2B-25.3%	$1.6B+210.2%	$520.0M	$0	N/A	N/A	N/A	N/A

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Operating Cash Flow	$1.0B+53.0%	$679.0M-73.7%	$2.6B+72.5%	$1.5B+63.8%	$914.0M+22.5%	$746.0M-3.7%	$775.0M-49.5%	$1.5B
Investing Cash Flow	-$2.9B-48.3%	-$1.9B+59.6%	-$4.8B-31.8%	-$3.6B+52.8%	-$7.7B-372.4%	-$1.6B+79.5%	-$8.0B-127.8%	-$3.5B
Financing Cash Flow	$4.9B+356.8%	$1.1B-37.9%	$1.7B+170.5%	-$2.5B-140.5%	$6.1B+84.6%	$3.3B-55.0%	$7.3B+914.3%	$721.0M
Dividends Paid	$636.0M-1.4%	$645.0M-2.0%	$658.0M-1.1%	$665.0M-0.7%	$670.0M-1.3%	$679.0M-0.9%	$685.0M-1.4%	$695.0M
Share Buybacks	$1.2B+5.8%	$1.1B+51.2%	$750.0M+50.0%	$500.0M-33.3%	$750.0M+50.0%	$500.0M0.0%	$500.0M0.0%	$500.0M

TFC-PI Financial Ratios

Margins and returns are percentages; the remaining ratios are unitless multiples.

TFC-PI annual financial ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18	FY17	FY16	FY15	FY14	FY13	FY12	FY11
Net Margin	21.6%+2.3pp	19.3%+23.6pp	-4.3%-42.0pp	37.7%-9.1pp	46.8%+17.9pp	28.9%-5.5pp	34.4%-5.7pp	40.1%+7.4pp	32.8%-1.8pp	34.6%+1.0pp	33.6%-2.4pp	35.9%+9.3pp	26.6%-2.7pp	29.3%+10.0pp	19.4%
Return on Equity	8.1%+0.5pp	7.6%+9.4pp	-1.8%-12.1pp	10.3%+1.1pp	9.3%+3.0pp	6.3%+1.5pp	4.9%-5.9pp	10.8%+2.7pp	8.1%0.0pp	8.2%+0.4pp	7.8%-1.3pp	9.0%+1.5pp	7.6%-2.0pp	9.6%+1.9pp	7.6%
Return on Assets	1.0%+0.1pp	0.9%+1.1pp	-0.2%-1.3pp	1.1%-0.1pp	1.2%+0.3pp	0.9%+0.2pp	0.7%-0.8pp	1.4%+0.3pp	1.1%0.0pp	1.1%+0.1pp	1.0%-0.2pp	1.2%+0.2pp	0.9%-0.1pp	1.1%+0.3pp	0.8%
Debt-to-Equity	0.64+0.1x	0.55-0.1x	0.66-0.1x	0.71+0.2x	0.520.0x	0.56-0.1x	0.62-0.2x	0.790.0x	0.80+0.1x	0.73-0.1x	0.87-0.1x	0.960.0x	0.940.0x	0.90-0.3x	1.25
FCF Margin	N/A	N/A	N/A	63.2%+9.1pp	54.1%+11.5pp	42.6%+28.8pp	13.8%-35.3pp	49.1%	N/A	N/A	N/A	N/A	N/A	51.6%-11.4pp	63.0%

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Net Margin	26.0%+0.7pp	25.3%+3.1pp	22.1%-1.0pp	23.1%+2.9pp	20.2%-0.9pp	21.1%+0.4pp	20.6%-2.1pp	22.7%
Return on Equity	2.4%+0.1pp	2.3%+0.2pp	2.1%-0.1pp	2.2%+0.3pp	1.9%0.0pp	1.9%-0.1pp	2.0%-0.2pp	2.2%
Return on Assets	0.3%0.0pp	0.3%0.0pp	0.3%0.0pp	0.3%0.0pp	0.2%0.0pp	0.2%0.0pp	0.2%0.0pp	0.3%
Debt-to-Equity	0.670.0x	0.650.0x	0.640.0x	0.640.0x	0.69+0.2x	0.50-0.1x	0.550.0x	0.56

Not reported in any period shown, so not listed: Gross Margin, Operating Margin, Current Ratio.

Where TFC-PI Ranks

Frequently Asked Questions

What is TFC-PI's annual revenue?

TFC-PI (TFC-PI) reported $24.5B in total revenue for fiscal year 2025. This represents a -2.1% 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 TFC-PI's revenue growing?

TFC-PI (TFC-PI) revenue declined by 2.1% year-over-year, from $25.1B to $24.5B in fiscal year 2025.

Is TFC-PI profitable?

Yes, TFC-PI (TFC-PI) reported a net income of $5.3B in fiscal year 2025, with a net profit margin of 21.6%.

How much debt does TFC-PI have?

As of fiscal year 2025, TFC-PI (TFC-PI) had $36.4B in cash and equivalents against $42.0B in long-term debt.

What is TFC-PI's net profit margin?

TFC-PI (TFC-PI) had a net profit margin of 21.6% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

What is TFC-PI's return on equity (ROE)?

TFC-PI (TFC-PI) has a return on equity of 8.1% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is TFC-PI's operating cash flow?

TFC-PI (TFC-PI) generated $5.7B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are TFC-PI's total assets?

TFC-PI (TFC-PI) had $547.5B in total assets as of fiscal year 2025, including both current and long-term assets.

Does TFC-PI buy back shares?

Yes, TFC-PI (TFC-PI) spent $2.5B on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

How many shares does TFC-PI have outstanding?

TFC-PI (TFC-PI) had 1.25B shares outstanding as of fiscal year 2025.

What is TFC-PI's debt-to-equity ratio?

TFC-PI (TFC-PI) had a debt-to-equity ratio of 0.64 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is TFC-PI's return on assets (ROA)?

TFC-PI (TFC-PI) had a return on assets of 1.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is TFC-PI's Piotroski F-Score?

TFC-PI (TFC-PI) has a Piotroski F-Score of 5 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 TFC-PI's earnings high quality?

TFC-PI (TFC-PI) has an earnings quality ratio of 1.08x, considered cash-backed (high quality). 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.