Ambarella, Inc. cash flow to debt ratio of 547.22% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Ambarella, Inc.'s free cash flow has increased 147.30% from $23.45M last year to $58.01M, signaling increasing performance

Ambarella, Inc.'s debt to equity ratio is 0.02, which means that the company's assets are healthy financed, signaling financial stability.

Ambarella, Inc.'s debt has increased relative to shareholder equity from 0.01 last year to 0.02 today, signaling weakened financials

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

Interest expense is not separately reported in Ambarella, Inc.'s latest filing, so interest coverage cannot be calculated.

Ambarella, Inc.'s profit margin has increased (-58.20%) in the last year from -41.12% to -17.18%, signaling increasing performance

Ambarella, Inc.'s short-term assets of $410.27M exceed its short-term liabilities of $177.94M

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

Ambarella, Inc.'s return on equity of -11.77%, is lower than 15.00%, indicating bad performance

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

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

Ambarella, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Ambarella, Inc. has a free cash flow yield of 1.61%, which is below the 2.00% threshold, indicating limited cash return relative to market value

Ambarella, Inc.'s yearly earnings has increased -35.23% since last year from $-117.13M to $-75.86M, signaling increasing performance

Ambarella, Inc.'s yearly revenue has increased 37.15% since last year from $284.87M to $390.70M, signaling increasing performance

ROIC -11.69% (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.

Ambarella, Inc.'s 3-year revenue CAGR of 4.99% is positive, indicating growing revenue over the past 3 years

Ambarella, Inc. had revenue growth in 4 out of 5 years, indicating consistent revenue performance

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

Ambarella, Inc. is overvalued relative to its fair value price of 27.57 based on Discounted Cash Flow model

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

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

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

Ambarella, Inc. is overvalued relative to its fair value price of -38.95 based on Earnings Fair Value model

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

Ambarella, Inc. has a price-to-book ratio of 5.91x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Ambarella, Inc. has a price-to-sales ratio of 8.83x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue