Purple Innovation, Inc. cash flow to debt ratio of -16.56% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Purple Innovation, Inc.'s free cash flow has decreased 67.01% from $-25.09M last year to $-41.91M, signaling decreasing performance

Purple Innovation, Inc.'s debt to equity ratio is -3.37, signaling that the company spent its equity and risk bankruptcy.

Purple Innovation, Inc.'s debt to equity ratio is -3.37, signaling that the company spent its equity and risk bankruptcy.

Purple Innovation, Inc. has a net debt to EBITDA ratio of 117.92x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Purple Innovation, Inc.'s interest coverage ratio is -1.09, which means that the company struggles to meet interest obligations, signaling financial risk.

Purple Innovation, Inc.'s profit margin has increased (-46.47%) in the last year from -20.07% to -10.74%, signaling increasing performance

Purple Innovation, Inc.'s short-term assets of $136.72M exceed its short-term liabilities of $101.52M

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

Purple Innovation, Inc.'s return on equity of 107.92%, is higher than 15.00%, indicating good performance

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

Purple Innovation, Inc. had positive net income in only 1 out of 5 years, indicating unstable earnings

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

Purple Innovation, Inc. has negative free cash flow, indicating cash burn

Purple Innovation, Inc.'s yearly earnings has increased -47.48% since last year from $-97.90M to $-51.41M, signaling increasing performance

Purple Innovation, Inc.'s yearly revenue has decreased 3.93% since last year from $487.88M to $468.73M, signaling decreasing performance

ROIC -18.76% (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.

Purple Innovation, Inc.'s 3-year revenue CAGR of -6.49% is negative, indicating declining revenue over the past 3 years

Purple Innovation, Inc. had revenue growth in only 1 out of 5 years, indicating inconsistent revenue performance

Purple Innovation, Inc. had positive ROE in only 1 out of 5 years, indicating inconsistent returns on equity

Purple Innovation, Inc. has insufficient data to evaluate this check.

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

Purple Innovation, Inc. is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

Purple Innovation, Inc. has an EV/EBITDA ratio of 143.88x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Purple Innovation, Inc. is overvalued relative to its fair value price of -54.22 based on Earnings Fair Value model

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

Purple Innovation, Inc. has negative shareholder equity; price-to-book is not meaningful and the check fails

Purple Innovation, Inc. has a price-to-sales ratio of 0.09x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue