VITANOVA LIFE SCIENCES (VNOV) Financials

VNOV

Trailing 12 months to July 31, 2026

Revenue $3.2M +22.0% YoY

Net Income -$114K -113.3% YoY

Operating Cash Flow $558K -42.0% YoY

Gross Profit $872K -44.5% YoY

Source SEC Filings (10-K/10-Q) Latest period Q1 FY2027, ended Jul 31, 2026 Reported Sep 14, 2026 Currency USD FYE April

Newest figures come from the 10-Q for Q1 FY2027, filed Sep 14, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the VNOV SEC filings page.

VITANOVA LIFE SCIENCES (VNOV) reported $3.2M in revenue over the twelve months to Jul 31, 2026, up 22.0% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 10 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 VNOV FY2026 2026-08-30

Cost escalation is overwhelming revenue expansion, turning a previously profitable model into near-break-even operations.

Revenue rose 13.7% from $2.66M in FY2025 to $3.03M in FY2026, but gross margin fell from 59.2% to 30.1%, indicating that additional sales were achieved with far less economic value retained. Operating margin simultaneously collapsed from 45.4% to 0.1% as selling, general and administrative expense reached $734K, making the deterioration a cost-and-mix problem rather than a volume problem.

The 2026 cash result diverged sharply from accounting earnings: operating cash flow was $814K despite a net loss of -$37K. Receivables fell from $1.27M to $727K, so cash generation appears substantially supported by collecting previously recorded sales rather than by current-period profitability.

The balance sheet is materially less dependent on liabilities than the earlier periods, with a 6.1x current ratio and 0.2x debt-to-equity in FY2026. Financing cash flow was $960K in FY2024 but $0 in FY2026, suggesting the reported expansion was not accompanied by continuing external financing in the latest year.

Financial Health Signals

Financial health score not available

VITANOVA LIFE SCIENCES 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.

Altman Z-Score Safe

20.16

VITANOVA LIFE SCIENCES scores 20.16, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($11.5M) relative to total liabilities ($396K). 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

4/8

VITANOVA LIFE SCIENCES passes 4 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 2 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.

Earnings Quality Mixed

N/A

VITANOVA LIFE SCIENCES reported a net loss of $37K while generating $814K in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, the ratio between the two carries no quality signal.

Key Financial Metrics

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Earnings & Revenue

Revenue

$322K

YoY+209.5%

QoQ-82.0%

VITANOVA LIFE SCIENCES generated $322K in revenue in Q1 2027. This represents an increase of 209.5% from the same quarter a year earlier. Against the prior quarter it is down 82.0%.

Net Income

-$123K

YoY-165.9%

QoQ-801.5%

VITANOVA LIFE SCIENCES reported -$123K in net income in Q1 2027. This represents a decrease of 165.9% from the same quarter a year earlier. Against the prior quarter it is down 801.5%.

EBITDA

Not reported for Q1 2027.

EPS (Diluted)

Not reported for Q1 2027.

Cash & Balance Sheet

Cash & Debt

$1.6M

YoY+53.3%

QoQ+0.4%

VITANOVA LIFE SCIENCES held $1.6M in cash as of Q1 2027; long-term debt is not reported for that period.

Shares Outstanding

YoY-66.7%

QoQ0.0%

5Y CAGR+7.3%

VITANOVA LIFE SCIENCES had 8M shares outstanding in Q1 2027. This represents a decrease of 66.7% from the same quarter a year earlier. It is unchanged from the prior quarter.

Free Cash Flow

Not reported for Q1 2027.

Dividends Per Share

Not reported for Q1 2027.

Margins & Returns

Gross Margin

9.5%

YoY-56.7pp

QoQ-5.3pp

VITANOVA LIFE SCIENCES's gross margin was 9.5% in Q1 2027, indicating the percentage of revenue retained after direct costs. This is down 56.7 percentage points from the same quarter a year earlier. Against the prior quarter it is down 5.3 percentage points.

Operating Margin

-38.0%

YoY-6.8pp

QoQ-31.8pp

VITANOVA LIFE SCIENCES's operating margin was -38.0% in Q1 2027, reflecting core business profitability. This is down 6.8 percentage points from the same quarter a year earlier. Against the prior quarter it is down 31.8 percentage points.

Net Margin

-38.3%

YoY+6.3pp

QoQ-39.3pp

VITANOVA LIFE SCIENCES's net profit margin was -38.3% in Q1 2027, showing the share of revenue converted to profit. This is up 6.3 percentage points from the same quarter a year earlier. Against the prior quarter it is down 39.3 percentage points.

Return on Equity

-6.4%

YoY-3.9pp

QoQ-7.2pp

VITANOVA LIFE SCIENCES's ROE was -6.4% in Q1 2027, 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 down 7.2 percentage points.

Capital Allocation

None of these metrics is reported for Q1 2027.

VNOV 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.

VNOV quarterly income statement

Metric	TTM	FY2610-K	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K
Revenue	$3.2M	$3.0M+13.7%	$2.7M+366.5%	$571K+1401.8%	$38K-68.3%	$120K	$0	$0	$0	$0	$0
Cost of Revenue	$2.4M	$2.1M+94.7%	$1.1M+462.9%	$193K	$0	N/A	N/A	N/A	$0	$0	$0
Gross Profit	$872K	$911K-42.2%	$1.6M+317.2%	$378K+894.0%	$38K	N/A	N/A	N/A	$0	$0	$0
SG&A Expenses	$782K	$734K+364.1%	$158K+82.3%	$87K+39.4%	$62K-53.3%	$133K+156.0%	$52K-28.0%	$72K+0.7%	$72K+47.6%	$49K+578.0%	$7K
Operating Income	-$86K	$4K-99.7%	$1.2M+487.6%	$206K+948.8%	-$24K-81.2%	-$13K+74.3%	-$52K+28.0%	-$72K-0.7%	-$72K-47.6%	-$49K	N/A
EBITDA	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-$72K-47.6%	-$49K	N/A
Interest Expense	N/A	$0-100.0%	$5K	$0	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Income Tax	$31K	$44K-87.6%	$354K+445.0%	$65K	$0	$0	$0	$0	$0	$0	N/A
Net Income	-$114K	-$37K-104.4%	$851K+503.9%	$141K+681.4%	-$24K-117.3%	$140K+368.1%	-$52K+28.0%	-$72K+31.9%	-$106K-6556.2%	-$2K+77.8%	-$7K
EPS (Basic)	N/A	$0.00-104.0%	$0.10+900.0%	$0.01	$0.00-100.0%	$0.02+300.0%	-$0.01	N/A	N/A	N/A	N/A
EPS (Diluted)	—	N/A	$0.03	$0.01	$0.00-100.0%	$0.02+300.0%	-$0.01	N/A	N/A	N/A	N/A
Diluted Shares (Avg)	N/A	N/A	25M	11M+81.3%	6M0.0%	6M0.0%	6M	N/A	N/A	5M+38.2%	4M

Metric	Q1'2710-Q	Q4'2610-Q	Q3'2610-Q	Q2'2610-Q	Q1'2610-Q	Q4'2510-K	Q3'2510-Q	Q2'2510-Q
Revenue	$322K+209.5%	$1.8M-8.6%	$710K+130.2%	$427K+46.2%	$104K-4.2%	$2.0M	$308K+1081.3%	$292K
Cost of Revenue	$291K+728.8%	$1.5M+91.0%	$393K+230.5%	$166K+22.0%	$35K-0.5%	$796K	$119K	$136K
Gross Profit	$31K-55.6%	$265K-77.1%	$316K+67.1%	$261K+67.4%	$69K-6.0%	$1.2M	$189K+625.3%	$156K
SG&A Expenses	$115K+73.2%	$328K+1003.1%	$220K+616.1%	$119K+197.8%	$66K+15.1%	$30K	$31K+52.2%	$40K+358.1%
Operating Income	-$122K-276.6%	-$110K-110.2%	$47K-57.1%	$99K+58.4%	-$32K+28.6%	$1.1M	$109K+1730.4%	$63K+815.0%
Interest Expense	N/A	N/A	$0-100.0%	$0-100.0%	N/A	N/A	$813	$2K
Income Tax	$939-93.2%	-$125K-144.4%	$91K+158.2%	$63K+125.7%	$14K+41.5%	$280K	$35K	$28K
Net Income	-$123K-165.9%	$18K-97.8%	-$44K-160.8%	$36K+9.7%	-$46K+16.1%	$800K	$73K+1126.9%	$33K+472.9%
EPS (Basic)	-$0.010.0%	$0.01-80.0%	-$0.01-200.0%	$0.00	-$0.01	$0.03+200.0%	$0.01	$0.00
EPS (Diluted)	N/A	N/A	-$0.01	$0.00	$0.00	$0.03+200.0%	$0.01	$0.00
Diluted Shares (Avg)	N/A	N/A	8M	25M0.0%	25M0.0%	N/A	8M+37.1%	25M

Not reported in any period shown, so not listed: R&D Expenses, EBITDA.

VNOV Balance Sheet

VNOV quarterly balance sheet

Metric	FY2610-K	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K
Total Assets	$2.4M+8.4%	$2.3M+89.1%	$1.2M+13567.0%	$9K-62.2%	$23K	$0	$0	$0-100.0%	$48K	N/A
Current Assets	$2.4M+7.7%	$2.3M+89.1%	$1.2M+13567.0%	$9K-62.2%	$23K	$0	$0	$0-100.0%	$4K	N/A
Cash & Equivalents	$1.6M+104.0%	$783K+32.0%	$593K+6694.6%	$9K-62.2%	$23K	$0	$0	$0-100.0%	$4K	N/A
Short-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0	$0	N/A
Inventory	$106K+138.7%	$44K-66.7%	$133K	$0	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	$727K-42.6%	$1.3M	$0	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Long-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0	$0	N/A
Total Liabilities	$396K+13.9%	$348K+153.8%	$137K+101.5%	$68K+17.0%	$58K-66.7%	$175K+42.5%	$123K+144.0%	$50K+797.2%	$6K	N/A
Current Liabilities	$396K+13.9%	$348K+153.8%	$137K+101.5%	$68K+17.0%	$58K-66.7%	$175K+42.5%	$123K+144.0%	$50K	$0	N/A
Non-Current Liabilities	$0	$0	$0	$0	$0	$0	$0	$0-100.0%	$6K	N/A
Total Equity	$2.1M+7.4%	$1.9M+80.8%	$1.1M+1883.2%	-$59K-69.2%	-$35K+80.0%	-$175K-42.5%	-$123K-144.0%	-$50K-219.2%	$42K	N/A
Retained Earnings	$830K-4.3%	$868K+5017.7%	$17K+113.7%	-$124K-24.3%	-$100K+58.4%	-$239K-27.8%	-$187K-62.9%	-$115K-1210.6%	-$9K	N/A

Metric	Q1'2710-Q	Q4'2610-Q	Q3'2610-Q	Q2'2610-Q	Q1'2610-Q	Q4'2510-K	Q3'2510-Q	Q2'2510-Q
Total Assets	$2.2M-0.1%	$2.4M+8.4%	$2.3M+75.0%	$2.3M+85.6%	$2.2M+86.7%	$2.3M+89.1%	$1.3M+37.0%	$1.3M
Current Assets	$2.2M-0.9%	$2.4M+7.7%	$2.3M+75.0%	$2.3M+85.6%	$2.2M+86.7%	$2.3M+89.1%	$1.3M+37.0%	$1.3M
Cash & Equivalents	$1.6M+53.3%	$1.6M+104.0%	$1.2M+188.5%	$1.3M+465.2%	$1.0M+639.0%	$783K+32.0%	$405K-49.9%	$223K
Short-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Inventory	$301K+3200.0%	$106K+138.7%	$130K-30.1%	$11K-96.3%	$9K-95.7%	$44K-66.7%	$187K	$303K
Accounts Receivable	$317K-68.8%	$727K-42.6%	$1.0M+1759.5%	$883K+1429.7%	$1.0M	$1.3M	$54K	$58K
Long-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Total Liabilities	$312K-18.0%	$396K+13.9%	$458K+115.2%	$438K+95.6%	$380K+90.6%	$348K+153.8%	$213K+127.4%	$224K+142.8%
Current Liabilities	$312K-18.0%	$396K+13.9%	$458K+115.2%	$438K+95.6%	$380K+90.6%	$348K+153.8%	$213K+127.4%	$224K+142.8%
Non-Current Liabilities	$0	$0	$0	$0	$0	$0	$0	$0
Total Equity	$1.9M+3.5%	$2.1M+7.4%	$1.9M+67.3%	$1.9M+83.4%	$1.9M+86.0%	$1.9M+80.8%	$1.1M+27.3%	$1.0M+1222.2%
Retained Earnings	$707K-13.9%	$830K-4.3%	$813K+1106.6%	$857K+15382.8%	$821K+2247.1%	$868K+5017.7%	$67K+144.6%	-$6K+96.4%

Not reported in any period shown, so not listed: Goodwill, Long-Term Debt.

VNOV Cash Flow Statement

VNOV quarterly cash flow statement

Metric	TTM	FY2610-K	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K
Operating Cash Flow	$558K	$814K+322.5%	$193K+151.3%	-$376K-1945.6%	-$18K-552.5%	$4K+109.6%	-$42K+21.1%	-$54K-9.1%	-$49K-428.4%	-$9K-43.1%	-$6K
Depreciation & Amortization	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	$0	$0-100.0%	$40
Stock-Based Compensation	N/A	$179K+8870.0%	$2K+100.0%	$1K	$0	N/A	N/A	N/A	N/A	N/A	N/A
Investing Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	$0	$0	$0+100.0%	-$34K-1312.5%	-$2K
Financing Cash Flow	N/A	$0+100.0%	-$3K-100.3%	$960K+23904.7%	$4K-79.0%	$19K-55.0%	$42K-21.1%	$54K+19.9%	$45K-5.8%	$47K+421.2%	$9K

Metric	Q1'2710-Q	Q4'2610-Q	Q3'2610-Q	Q2'2610-Q	Q1'2610-Q	Q4'2510-K	Q3'2510-Q	Q2'2510-Q
Operating Cash Flow	$7K-97.4%	$428K-10.6%	-$90K-143.3%	$213K+2327.6%	$264K+152.3%	$479K+350.6%	$209K+238.7%	$9K+209.6%
Stock-Based Compensation	N/A	N/A	N/A	N/A	$0-100.0%	N/A	N/A	N/A
Financing Cash Flow	N/A	$0+100.0%	$0+100.0%	$0-100.0%	$0-100.0%	-$102K-320.6%	-$27K-102.8%	$72K+806.0%

Not reported in any period shown, so not listed: Depreciation & Amortization, Capital Expenditures, Free Cash Flow, Investing Cash Flow, Dividends Paid, Share Buybacks.

VNOV 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.

VNOV quarterly financial ratios

Metric	FY2610-K	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K
Gross Margin	30.1%-29.1pp	59.2%-7.0pp	66.2%-33.8pp	100.0%	N/A	N/A	N/A	N/A	N/A	N/A
Operating Margin	0.1%-45.3pp	45.4%+9.4pp	36.0%+99.8pp	-63.8%-52.6pp	-11.1%	N/A	N/A	N/A	N/A	N/A
Net Margin	-1.2%-33.2pp	32.0%+7.3pp	24.7%+88.4pp	-63.8%	116.4%	N/A	N/A	N/A	N/A	N/A
Return on Equity	-1.8%-46.4pp	44.6%+31.2pp	13.3%	N/A	N/A	N/A	N/A	N/A	-3.8%	N/A
Return on Assets	-1.5%-39.2pp	37.7%+25.9pp	11.8%+289.4pp	-277.6%-882.2pp	604.6%	N/A	N/A	N/A	-3.3%	N/A
Current Ratio	6.14-0.4x	6.49-2.2x	8.71+8.6x	0.13-0.3x	0.40+0.4x	0.000.0x	0.000.0x	0.00	N/A	N/A
Debt-to-Equity	0.190.0x	0.18+0.1x	0.13	N/A	N/A	N/A	N/A	N/A	0.13	N/A
Asset Turnover	1.24+0.1x	1.18+0.7x	0.48-3.9x	4.35-0.8x	5.19	N/A	N/A	N/A	0.00	N/A

Metric	Q1'2710-Q	Q4'2610-Q	Q3'2610-Q	Q2'2610-Q	Q1'2610-Q	Q4'2510-K	Q3'2510-Q	Q2'2510-Q
Gross Margin	9.5%-56.7pp	14.8%-44.4pp	44.6%-16.8pp	61.1%+7.7pp	66.2%-1.2pp	59.3%	61.4%-38.6pp	53.3%
Operating Margin	-38.0%-6.8pp	-6.2%-61.6pp	6.6%-28.7pp	23.2%+1.8pp	-31.2%+10.7pp	55.4%	35.3%+12.5pp	21.4%
Net Margin	-38.3%+6.3pp	1.0%-40.0pp	-6.3%-29.9pp	8.4%-2.8pp	-44.6%+6.3pp	41.0%	23.7%+0.9pp	11.2%
Return on Equity	-6.4%-3.9pp	0.9%-41.1pp	-2.4%-9.0pp	1.9%-1.3pp	-2.5%+3.0pp	41.9%	6.6%+5.9pp	3.1%
Return on Assets	-5.5%-3.4pp	0.7%-34.8pp	-1.9%-7.4pp	1.5%-1.1pp	-2.1%+2.5pp	35.5%	5.5%+4.9pp	2.6%
Current Ratio	7.13+1.2x	6.14-0.4x	5.05-1.2x	5.33-0.3x	5.90-0.1x	6.49-2.2x	6.21-4.1x	5.62+5.6x
Debt-to-Equity	0.160.0x	0.190.0x	0.25+0.1x	0.230.0x	0.200.0x	0.18+0.1x	0.19+0.1x	0.22
Asset Turnover	0.14+0.1x	0.73-0.1x	0.31+0.1x	0.180.0x	0.050.0x	0.87	0.23+0.2x	0.23

Not reported in any period shown, so not listed: FCF Margin.

Where VITANOVA LIFE SCIENCES Ranks

Frequently Asked Questions

What is VITANOVA LIFE SCIENCES's annual revenue?

VITANOVA LIFE SCIENCES (VNOV) reported $3.0M in total revenue for fiscal year 2026. This represents a 13.7% 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 VITANOVA LIFE SCIENCES's revenue growing?

VITANOVA LIFE SCIENCES (VNOV) revenue grew by 13.7% year-over-year, from $2.7M to $3.0M in fiscal year 2026.

Is VITANOVA LIFE SCIENCES profitable?

No, VITANOVA LIFE SCIENCES (VNOV) reported a net income of -$37K in fiscal year 2026, with a net profit margin of -1.2%.

What is VITANOVA LIFE SCIENCES's gross margin?

VITANOVA LIFE SCIENCES (VNOV) had a gross margin of 30.1% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.

What is VITANOVA LIFE SCIENCES's operating margin?

VITANOVA LIFE SCIENCES (VNOV) had an operating margin of 0.1% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.

What is VITANOVA LIFE SCIENCES's net profit margin?

VITANOVA LIFE SCIENCES (VNOV) had a net profit margin of -1.2% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.

What is VITANOVA LIFE SCIENCES's return on equity (ROE)?

VITANOVA LIFE SCIENCES (VNOV) has a return on equity of -1.8% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.

What is VITANOVA LIFE SCIENCES's operating cash flow?

VITANOVA LIFE SCIENCES (VNOV) generated $814K in operating cash flow during fiscal year 2026, representing cash generated from core business activities.

What are VITANOVA LIFE SCIENCES's total assets?

VITANOVA LIFE SCIENCES (VNOV) had $2.4M in total assets as of fiscal year 2026, including both current and long-term assets.

How many shares does VITANOVA LIFE SCIENCES have outstanding?

VITANOVA LIFE SCIENCES (VNOV) had 8M shares outstanding as of fiscal year 2026.

What is VITANOVA LIFE SCIENCES's current ratio?

VITANOVA LIFE SCIENCES (VNOV) had a current ratio of 6.14 as of fiscal year 2026, which is generally considered healthy.

What is VITANOVA LIFE SCIENCES's debt-to-equity ratio?

VITANOVA LIFE SCIENCES (VNOV) had a debt-to-equity ratio of 0.19 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is VITANOVA LIFE SCIENCES's return on assets (ROA)?

VITANOVA LIFE SCIENCES (VNOV) had a return on assets of -1.5% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.

What is VITANOVA LIFE SCIENCES's Altman Z-Score?

VITANOVA LIFE SCIENCES (VNOV) has an Altman Z-Score of 20.16, 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 VITANOVA LIFE SCIENCES's Piotroski F-Score?

VITANOVA LIFE SCIENCES (VNOV) has a Piotroski F-Score of 4 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 VITANOVA LIFE SCIENCES's earnings high quality?

VITANOVA LIFE SCIENCES (VNOV) reported a net loss of $37K while generating $814K in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, 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.