Borr Drilling Limited cash flow to debt ratio of 11.71% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Borr Drilling Limited's free cash flow has increased -138.36% from $-332.10M last year to $127.40M, signaling increasing performance

Borr Drilling Limited's debt to equity ratio is 1.93, which means that the company's assets are unhealthy financed, signaling financial risk.

Borr Drilling Limited's debt has decreased relative to shareholder equity from 2.13 last year to 1.93 today, signaling strengthened financials

Borr Drilling Limited has a net debt to EBITDA ratio of 3.83x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Borr Drilling Limited's interest coverage ratio is 1.32, which means that the company struggles to meet interest obligations, signaling financial risk.

Borr Drilling Limited's profit margin has decreased (57.96%) in the last year from 8.12% to 3.42%, signaling decreasing performance

Borr Drilling Limited's short-term assets of $739.10M exceed its short-term liabilities of $350.70M

Borr Drilling Limited's return on assets of 0.94% is lower than the 5.00% threshold, indicating inefficient asset utilization

Borr Drilling Limited's return on equity of 3.14%, is lower than 15.00%, indicating bad performance

Borr Drilling Limited's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Borr Drilling Limited had positive net income in 3 out of 5 years, indicating stable and consistent earnings

Borr Drilling Limited has positive free cash flow, indicating the company generates cash after capital expenditures

Borr Drilling Limited has a free cash flow yield of 9.95%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Borr Drilling Limited's yearly earnings has decreased 45.19% since last year from $82.10M to $45.00M, signaling decreasing performance

Borr Drilling Limited's yearly revenue has increased 1.01% since last year from $1.01B to $1.02B, signaling increasing performance

ROIC 3.98% (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.

Borr Drilling Limited's 3-year revenue CAGR of 32.00% is positive, indicating growing revenue over the past 3 years

Borr Drilling Limited had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Borr Drilling Limited had positive ROE in 3 out of 5 years, indicating consistent and reliable returns on equity

Borr Drilling Limited has insufficient data to evaluate this check.

Borr Drilling Limited has an earnings yield of 2.80%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Borr Drilling Limited is undervalued relative to its fair value price of 6.04 based on EBITDA multiple model

Borr Drilling Limited has an EV/EBITDA ratio of 6.60x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Borr Drilling Limited is undervalued relative to its fair value price of 20.84 based on Earnings Fair Value model

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

Borr Drilling Limited has a price-to-book ratio of 1.07x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Borr Drilling Limited has a price-to-sales ratio of 1.22x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue