Arcos Dorados Holdings Inc. cash flow to debt ratio of 13.20% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Arcos Dorados Holdings Inc.'s free cash flow has increased -124.67% from $-60.79M last year to $14.99M, signaling increasing performance

Arcos Dorados Holdings Inc.'s debt to equity ratio is 2.82, which means that the company's assets are unhealthy financed, signaling financial risk.

Arcos Dorados Holdings Inc.'s debt has decreased relative to shareholder equity from 3.39 last year to 2.82 today, signaling strengthened financials

Arcos Dorados Holdings Inc. has a net debt to EBITDA ratio of 3.19x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Arcos Dorados Holdings Inc.'s interest coverage ratio of 8.83 indicates that earnings with good margin can cover interest payments on company debt

Arcos Dorados Holdings Inc.'s profit margin has increased (46.16%) in the last year from 3.33% to 4.86%, signaling increasing performance

Arcos Dorados Holdings Inc.'s short-term assets of $851.96M exceed its short-term liabilities of $828.74M

Arcos Dorados Holdings Inc.'s return on assets of 6.14% is higher than the 5.00% threshold, indicating efficient asset utilization

Arcos Dorados Holdings Inc.'s return on equity of 32.65%, is higher than 15.00%, indicating good performance

Arcos Dorados Holdings Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Arcos Dorados Holdings Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Arcos Dorados Holdings Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Arcos Dorados Holdings Inc. has a free cash flow yield of 0.88%, which is below the 2.00% threshold, indicating limited cash return relative to market value

Arcos Dorados Holdings Inc.'s yearly earnings has increased 42.59% since last year from $148.76M to $212.12M, signaling increasing performance

Arcos Dorados Holdings Inc.'s yearly revenue has increased 4.66% since last year from $4.47B to $4.68B, signaling increasing performance

ROIC 7.27% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Arcos Dorados Holdings Inc.'s 3-year revenue CAGR of 8.94% is positive, indicating growing revenue over the past 3 years

Arcos Dorados Holdings Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Arcos Dorados Holdings Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Arcos Dorados Holdings Inc. has insufficient data to evaluate this check.

Arcos Dorados Holdings Inc. has an earnings yield of 13.78%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Arcos Dorados Holdings Inc. is undervalued relative to its fair value price of 10.12 based on EBITDA multiple model

Arcos Dorados Holdings Inc. has an EV/EBITDA ratio of 6.16x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Arcos Dorados Holdings Inc. is undervalued relative to its fair value price of 26.73 based on Earnings Fair Value model

Arcos Dorados Holdings Inc. had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

Arcos Dorados Holdings Inc. has a price-to-book ratio of 2.19x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Arcos Dorados Holdings Inc. has a price-to-sales ratio of 0.35x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue