Precision Optics Corporation, Inc. cash flow to debt ratio of -174.20% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Precision Optics Corporation, Inc.'s free cash flow has decreased 26.80% from $-2.98M last year to $-3.77M, signaling decreasing performance

Precision Optics Corporation, Inc.'s debt to equity ratio is 0.21, which means that the company's assets are healthy financed, signaling financial stability.

Precision Optics Corporation, Inc.'s debt has decreased relative to shareholder equity from 0.34 last year to 0.21 today, signaling strengthened financials

Precision Optics Corporation, Inc. has negative EBITDA, making leverage ratio unreliable

Precision Optics Corporation, Inc.'s interest coverage ratio is -29.75, which means that the company struggles to meet interest obligations, signaling financial risk.

Precision Optics Corporation, Inc.'s profit margin has decreased (10.24%) in the last year from -15.45% to -17.03%, signaling decreasing performance

Precision Optics Corporation, Inc.'s short-term assets of $10.06M exceed its short-term liabilities of $6.15M

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

Precision Optics Corporation, Inc.'s return on equity of -37.47%, is lower than 15.00%, indicating bad performance

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

Precision Optics Corporation, Inc. had positive net income in only 0 out of 5 years, indicating unstable earnings

Precision Optics Corporation, Inc. has negative free cash flow, indicating the company is burning cash rather than generating it

Precision Optics Corporation, Inc. has negative free cash flow, indicating cash burn

Precision Optics Corporation, Inc.'s yearly earnings has decreased 95.85% since last year from $-2.95M to $-5.78M, signaling decreasing performance

Precision Optics Corporation, Inc.'s yearly revenue has decreased 0.07% since last year from $19.10M to $19.09M, signaling decreasing performance

ROIC -19.51% (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.

Precision Optics Corporation, Inc.'s 3-year revenue CAGR of 6.79% is positive, indicating growing revenue over the past 3 years

Precision Optics Corporation, Inc. had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Precision Optics Corporation, Inc. had positive ROE in only 0 out of 5 years, indicating inconsistent returns on equity

Precision Optics Corporation, Inc. has insufficient data to evaluate this check.

Precision Optics Corporation, Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Precision Optics Corporation, Inc. is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

Precision Optics Corporation, Inc. has negative or missing EBITDA, making EV/EBITDA ratio unreliable

Precision Optics Corporation, Inc. is overvalued relative to its fair value price of -4.69 based on Earnings Fair Value model

Precision Optics Corporation, Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Precision Optics Corporation, Inc. has a price-to-book ratio of 1.64x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Precision Optics Corporation, Inc. has a price-to-sales ratio of 1.14x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue