AppLovin Corporation cash flow to debt ratio of 112.03% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

AppLovin Corporation's free cash flow has increased 88.27% from $2.09B last year to $3.94B, signaling increasing performance

AppLovin Corporation's debt to equity ratio is 1.11, which means that the company's assets are unhealthy financed, signaling financial risk.

AppLovin Corporation's debt has decreased relative to shareholder equity from 3.26 last year to 1.11 today, signaling strengthened financials

AppLovin Corporation has a net debt to EBITDA ratio of 0.24x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

AppLovin Corporation's interest coverage ratio of 25.79 indicates that earnings with good margin can cover interest payments on company debt

AppLovin Corporation's profit margin has increased (31.79%) in the last year from 49.00% to 64.58%, signaling increasing performance

AppLovin Corporation's short-term assets of $4.43B exceed its short-term liabilities of $1.33B

AppLovin Corporation's return on assets of 53.33% is higher than the 5.00% threshold, indicating efficient asset utilization

AppLovin Corporation's return on equity of 193.10%, is higher than 15.00%, indicating good performance

AppLovin Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

AppLovin Corporation had positive net income in 4 out of 5 years, indicating stable and consistent earnings

AppLovin Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

AppLovin Corporation has a free cash flow yield of 3.46%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

AppLovin Corporation's yearly earnings has increased 111.03% since last year from $1.58B to $3.33B, signaling increasing performance

AppLovin Corporation's yearly revenue has increased 16.38% since last year from $4.71B to $5.48B, signaling increasing performance

ROIC 63.79% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

AppLovin Corporation's 3-year revenue CAGR of 24.84% is positive, indicating growing revenue over the past 3 years

AppLovin Corporation had revenue growth in 4 out of 5 years, indicating consistent revenue performance

AppLovin Corporation had positive ROE in 4 out of 5 years, indicating consistent and reliable returns on equity

AppLovin Corporation is overvalued relative to its fair value price of 203.96 based on Discounted Cash Flow model

AppLovin Corporation has an earnings yield of 3.86%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

AppLovin Corporation is overvalued relative to its fair value price of 87.07 based on EBITDA multiple model

AppLovin Corporation has an EV/EBITDA ratio of 26.39x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

AppLovin Corporation has insufficient data to evaluate this check.

AppLovin Corporation had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

AppLovin Corporation has a price-to-book ratio of 36.07x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

AppLovin Corporation has a price-to-sales ratio of 16.71x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue