Applied Optoelectronics, Inc. cash flow to debt ratio of -104.24% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Applied Optoelectronics, Inc.'s free cash flow has decreased 213.09% from $-112.93M last year to $-353.58M, signaling decreasing performance

Applied Optoelectronics, Inc.'s debt to equity ratio is 0.16, which means that the company's assets are healthy financed, signaling financial stability.

Applied Optoelectronics, Inc.'s debt has decreased relative to shareholder equity from 0.83 last year to 0.16 today, signaling strengthened financials

Applied Optoelectronics, Inc. has a net cash position, so leverage is healthy.

Applied Optoelectronics, Inc.'s interest coverage ratio is -21.86, which means that the company struggles to meet interest obligations, signaling financial risk.

Applied Optoelectronics, Inc.'s profit margin has increased (-87.22%) in the last year from -74.88% to -9.57%, signaling increasing performance

Applied Optoelectronics, Inc.'s short-term assets of $675.73M exceed its short-term liabilities of $257.28M

Applied Optoelectronics, Inc.'s return on assets of 0.00% is lower than the 5.00% threshold, indicating inefficient asset utilization

Applied Optoelectronics, Inc.'s return on equity of -5.61%, is lower than 15.00%, indicating bad performance

Applied Optoelectronics, Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Applied Optoelectronics, Inc. had positive net income in only 0 out of 5 years, indicating unstable earnings

Applied Optoelectronics, Inc. has negative free cash flow, indicating the company is burning cash rather than generating it

Applied Optoelectronics, Inc. has negative free cash flow, indicating cash burn

Applied Optoelectronics, Inc.'s yearly earnings has increased -79.53% since last year from $-186.73M to $-38.23M, signaling increasing performance

Applied Optoelectronics, Inc.'s yearly revenue has increased 82.75% since last year from $249.37M to $455.71M, signaling increasing performance

ROIC -3.15% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Applied Optoelectronics, Inc.'s 3-year revenue CAGR of 26.93% is positive, indicating growing revenue over the past 3 years

Applied Optoelectronics, Inc. had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Applied Optoelectronics, Inc. had positive ROE in only 0 out of 5 years, indicating inconsistent returns on equity

Applied Optoelectronics, Inc. has insufficient data to evaluate this check.

Applied Optoelectronics, Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Applied Optoelectronics, Inc. is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

Applied Optoelectronics, Inc. has negative or missing EBITDA, making EV/EBITDA ratio unreliable

Applied Optoelectronics, Inc. is overvalued relative to its fair value price of -38.81 based on Earnings Fair Value model

Applied Optoelectronics, Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Applied Optoelectronics, Inc. has a price-to-book ratio of 6.49x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Applied Optoelectronics, Inc. has a price-to-sales ratio of 18.18x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue