Aehr Test Systems cash flow to debt ratio of -74.88% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Aehr Test Systems's free cash flow has decreased 1.33K% from $1.01M last year to $-12.39M, signaling decreasing performance

Aehr Test Systems's debt to equity ratio is 0.05, which means that the company's assets are healthy financed, signaling financial stability.

Aehr Test Systems's debt has decreased relative to shareholder equity from 0.09 last year to 0.05 today, signaling strengthened financials

Aehr Test Systems has a net cash position, so leverage is healthy.

Aehr Test Systems earns at least as much interest as it pays. Interest obligations are fully covered.

Aehr Test Systems's profit margin has decreased (111.07%) in the last year from -6.63% to -14.00%, signaling decreasing performance

Aehr Test Systems's short-term assets of $184.45M exceed its short-term liabilities of $17.86M

Aehr Test Systems's return on assets of 0.00% is lower than the 5.00% threshold, indicating inefficient asset utilization

Aehr Test Systems's return on equity of -4.66%, is lower than 15.00%, indicating bad performance

Aehr Test Systems's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Aehr Test Systems had positive net income in 3 out of 5 years, indicating stable and consistent earnings

Aehr Test Systems has negative free cash flow, indicating the company is burning cash rather than generating it

Aehr Test Systems has negative free cash flow, indicating cash burn

Aehr Test Systems's yearly earnings has decreased 82.25% since last year from $-3.91M to $-7.13M, signaling decreasing performance

Aehr Test Systems's yearly revenue has decreased 15.21% since last year from $58.97M to $50.00M, signaling decreasing performance

ROIC -3.74% (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.

Aehr Test Systems's 3-year revenue CAGR of -8.36% is negative, indicating declining revenue over the past 3 years

Aehr Test Systems had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Aehr Test Systems had positive ROE in 3 out of 5 years, indicating consistent and reliable returns on equity

Aehr Test Systems has insufficient data to evaluate this check.

Aehr Test Systems has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Aehr Test Systems is overvalued relative to its fair value price of 0.26 based on EBITDA multiple model

Aehr Test Systems has negative or missing EBITDA, making EV/EBITDA ratio unreliable

Aehr Test Systems is overvalued relative to its fair value price of 6.05 based on Earnings Fair Value model

Aehr Test Systems has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Aehr Test Systems has a price-to-book ratio of 14.84x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Aehr Test Systems has a price-to-sales ratio of 63.97x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue