Torrid Holdings Inc. cash flow to debt ratio of -2.97% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Torrid Holdings Inc.'s free cash flow has decreased 134.71% from $63.00M last year to $-21.86M, signaling decreasing performance

Torrid Holdings Inc.'s debt to equity ratio is -2.01, signaling that the company spent its equity and risk bankruptcy.

Torrid Holdings Inc.'s debt to equity ratio is -2.01, signaling that the company spent its equity and risk bankruptcy.

Torrid Holdings Inc. has a net debt to EBITDA ratio of 4.56x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Torrid Holdings Inc.'s interest coverage ratio is 0.44, which means that the company struggles to meet interest obligations, signaling financial risk.

Torrid Holdings Inc.'s profit margin has decreased (186.69%) in the last year from 1.48% to -1.28%, signaling decreasing performance

Torrid Holdings Inc.'s short-term liabilities of $248.94M exceed its short-term assets of $193.48M, signaling financial risk

Torrid Holdings Inc.'s return on assets of 0.00% is lower than the 5.00% threshold, indicating inefficient asset utilization

Torrid Holdings Inc.'s return on equity of 6.03%, is lower than 15.00%, indicating bad performance

Torrid Holdings Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Torrid Holdings Inc. had positive net income in 3 out of 5 years, indicating stable and consistent earnings

Torrid Holdings Inc. has negative free cash flow, indicating the company is burning cash rather than generating it

Torrid Holdings Inc. has negative free cash flow, indicating cash burn

Torrid Holdings Inc.'s yearly earnings has decreased 143.11% since last year from $16.32M to $-7.03M, signaling decreasing performance

Torrid Holdings Inc.'s yearly revenue has decreased 9.39% since last year from $1.10B to $1.00B, signaling decreasing performance

ROIC 4.59% (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.

Torrid Holdings Inc.'s 3-year revenue CAGR of -8.09% is negative, indicating declining revenue over the past 3 years

Torrid Holdings Inc. had revenue growth in only 2 out of 5 years, indicating inconsistent revenue performance

Torrid Holdings Inc. had positive ROE in only 0 out of 5 years, indicating inconsistent returns on equity

Torrid Holdings Inc. has insufficient data to evaluate this check.

Torrid Holdings Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Torrid Holdings Inc. is overvalued relative to its fair value price of 2.22 based on EBITDA multiple model

Torrid Holdings Inc. has an EV/EBITDA ratio of 7.27x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Torrid Holdings Inc. has insufficient data to evaluate this check.

Torrid Holdings Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Torrid Holdings Inc. has negative shareholder equity; price-to-book is not meaningful and the check fails

Torrid Holdings Inc. has a price-to-sales ratio of 0.25x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue