Callaway Golf Company cash flow to debt ratio of 19.95% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Callaway Golf Company's free cash flow has increased 261.39% from $83.40M last year to $301.40M, signaling increasing performance

Callaway Golf Company's debt to equity ratio is 0.12, which means that the company's assets are healthy financed, signaling financial stability.

Callaway Golf Company's debt has decreased relative to shareholder equity from 1.72 last year to 0.12 today, signaling strengthened financials

Callaway Golf Company has a net debt to EBITDA ratio of 4.01x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Callaway Golf Company's interest coverage ratio of 2.67 indicates that earnings with margin can cover interest payments on company debt

Callaway Golf Company's profit margin has increased (-109.86%) in the last year from -34.15% to 3.37%, signaling increasing performance

Callaway Golf Company's short-term assets of $5.94B exceed its short-term liabilities of $4.37B

Callaway Golf Company's return on assets of 3.15% is lower than the 5.00% threshold, indicating inefficient asset utilization

Callaway Golf Company's return on equity of 3.97%, is lower than 15.00%, indicating bad performance

Callaway Golf Company's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Callaway Golf Company had positive net income in 4 out of 5 years, indicating stable and consistent earnings

Callaway Golf Company has positive free cash flow, indicating the company generates cash after capital expenditures

Callaway Golf Company has a free cash flow yield of 9.83%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Callaway Golf Company's yearly earnings has increased -102.68% since last year from $-1.45B to $38.80M, signaling increasing performance

Callaway Golf Company's yearly revenue has decreased 51.40% since last year from $4.24B to $2.06B, signaling decreasing performance

ROIC 4.80% (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.

Callaway Golf Company's 3-year revenue CAGR of -19.81% is negative, indicating declining revenue over the past 3 years

Callaway Golf Company had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Callaway Golf Company had positive ROE in 4 out of 5 years, indicating consistent and reliable returns on equity

Callaway Golf Company has insufficient data to evaluate this check.

Callaway Golf Company has an earnings yield of 2.86%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Callaway Golf Company is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

Callaway Golf Company has an EV/EBITDA ratio of 19.95x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Callaway Golf Company is overvalued relative to its fair value price of 12.70 based on Earnings Fair Value model

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

Callaway Golf Company has a price-to-book ratio of 1.42x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Callaway Golf Company has a price-to-sales ratio of 1.18x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue