Elanco Animal Health Incorporated cash flow to debt ratio of 13.94% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Elanco Animal Health Incorporated's free cash flow has decreased 27.92% from $394.00M last year to $284.00M, signaling decreasing performance

Elanco Animal Health Incorporated's debt to equity ratio is 0.59, which means that the company's assets are healthy financed, signaling financial stability.

Elanco Animal Health Incorporated's debt has decreased relative to shareholder equity from 0.71 last year to 0.59 today, signaling strengthened financials

Elanco Animal Health Incorporated has a net debt to EBITDA ratio of 5.14x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Elanco Animal Health Incorporated's interest coverage ratio is 1.78, which means that the company struggles to meet interest obligations, signaling financial risk.

Elanco Animal Health Incorporated's profit margin has decreased (152.06%) in the last year from 7.61% to -3.96%, signaling decreasing performance

Elanco Animal Health Incorporated's short-term assets of $3.46B exceed its short-term liabilities of $1.60B

Elanco Animal Health Incorporated's return on assets of 0.00% is lower than the 5.00% threshold, indicating inefficient asset utilization

Elanco Animal Health Incorporated's return on equity of -3.02%, is lower than 15.00%, indicating bad performance

Elanco Animal Health Incorporated's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Elanco Animal Health Incorporated had positive net income in only 1 out of 5 years, indicating unstable earnings

Elanco Animal Health Incorporated has positive free cash flow, indicating the company generates cash after capital expenditures

Elanco Animal Health Incorporated has a free cash flow yield of 2.55%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Elanco Animal Health Incorporated's yearly earnings has decreased 168.64% since last year from $338.00M to $-232.00M, signaling decreasing performance

Elanco Animal Health Incorporated's yearly revenue has increased 6.22% since last year from $4.44B to $4.71B, signaling increasing performance

ROIC 3.92% (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.

Elanco Animal Health Incorporated's 3-year revenue CAGR of 2.25% is positive, indicating growing revenue over the past 3 years

Elanco Animal Health Incorporated had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Elanco Animal Health Incorporated had positive ROE in only 1 out of 5 years, indicating inconsistent returns on equity

Elanco Animal Health Incorporated has insufficient data to evaluate this check.

Elanco Animal Health Incorporated has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Elanco Animal Health Incorporated is overvalued relative to its fair value price of 2.54 based on EBITDA multiple model

Elanco Animal Health Incorporated has an EV/EBITDA ratio of 21.60x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Elanco Animal Health Incorporated is overvalued relative to its fair value price of 13.88 based on Earnings Fair Value model

Elanco Animal Health Incorporated has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Elanco Animal Health Incorporated has a price-to-book ratio of 1.69x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Elanco Animal Health Incorporated has a price-to-sales ratio of 2.22x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue