Capital Southwest Corporation cash flow to debt ratio of -17.11% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Capital Southwest Corporation's free cash flow has increased -11.61% from $-218.92M last year to $-193.50M, signaling increasing performance

Capital Southwest Corporation's debt to equity ratio is 0.46, which means that the company's assets are healthy financed, signaling financial stability.

Capital Southwest Corporation's debt has decreased relative to shareholder equity from 1.08 last year to 0.46 today, signaling strengthened financials

Capital Southwest Corporation has a net debt to EBITDA ratio of 5.68x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Capital Southwest Corporation earns at least as much interest as it pays. Interest obligations are fully covered.

Capital Southwest Corporation's profit margin has increased (11.89%) in the last year from 43.07% to 48.19%, signaling increasing performance

Capital Southwest Corporation's short-term assets of $64.64M exceed its short-term liabilities of $0.00

Capital Southwest Corporation's return on assets of 4.78% is lower than the 5.00% threshold, indicating inefficient asset utilization

Capital Southwest Corporation's return on equity of 11.04%, is lower than 15.00%, indicating bad performance

Capital Southwest Corporation's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

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

Capital Southwest Corporation has negative free cash flow, indicating the company is burning cash rather than generating it

Capital Southwest Corporation has negative free cash flow, indicating cash burn

Capital Southwest Corporation's yearly earnings has increased 60.17% since last year from $70.55M to $113.00M, signaling increasing performance

Capital Southwest Corporation's yearly revenue has increased 47.15% since last year from $157.73M to $232.10M, signaling increasing performance

ROIC 5.72% (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.

Capital Southwest Corporation's 3-year revenue CAGR of 39.64% is positive, indicating growing revenue over the past 3 years

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

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

Capital Southwest Corporation has insufficient data to evaluate this check.

Capital Southwest Corporation has an earnings yield of 7.20%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Capital Southwest Corporation is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

Capital Southwest Corporation has an EV/EBITDA ratio of 13.74x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Capital Southwest Corporation is undervalued relative to its fair value price of 40.56 based on Earnings Fair Value model

Capital Southwest Corporation's earnings growth over the measurement period is negative; the PEG ratio is not meaningful and the check fails.

Capital Southwest Corporation has a price-to-book ratio of 1.45x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Capital Southwest Corporation has a price-to-sales ratio of 6.69x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue