Erayak Power Solution Group Inc. cash flow to debt ratio of -25.37% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Erayak Power Solution Group Inc.'s free cash flow has increased -33.04% from $-16.43M last year to $-11.00M, signaling increasing performance

Erayak Power Solution Group Inc.'s debt to equity ratio is 0.35, which means that the company's assets are healthy financed, signaling financial stability.

Erayak Power Solution Group Inc.'s debt has increased relative to shareholder equity from 0.19 last year to 0.35 today, signaling weakened financials

Erayak Power Solution Group Inc. has a net debt to EBITDA ratio of 31.80x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Erayak Power Solution Group Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Erayak Power Solution Group Inc.'s profit margin has decreased (65.23%) in the last year from -3.68% to -6.09%, signaling decreasing performance

Erayak Power Solution Group Inc.'s short-term assets of $43.36M exceed its short-term liabilities of $20.77M

Erayak Power Solution Group Inc.'s return on assets of 0.00% is lower than the 5.00% threshold, indicating inefficient asset utilization

Erayak Power Solution Group Inc.'s return on equity of -4.51%, is lower than 15.00%, indicating bad performance

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

Erayak Power Solution Group Inc. has insufficient public price history to evaluate earnings stability.

Erayak Power Solution Group Inc. has negative free cash flow, indicating the company is burning cash rather than generating it

Erayak Power Solution Group Inc. has negative free cash flow, indicating cash burn

Erayak Power Solution Group Inc.'s yearly earnings has decreased 24.55% since last year from $-1.12M to $-1.39M, signaling decreasing performance

Erayak Power Solution Group Inc.'s yearly revenue has decreased 24.57% since last year from $30.30M to $22.86M, signaling decreasing performance

ROIC -3.44% (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.

Erayak Power Solution Group Inc.'s 3-year revenue CAGR of -5.30% is negative, indicating declining revenue over the past 3 years

Erayak Power Solution Group Inc. has insufficient public price history to evaluate revenue consistency.

Erayak Power Solution Group Inc. has insufficient public price history to evaluate ROE consistency.

Erayak Power Solution Group Inc. has insufficient data to evaluate this check.

Erayak Power Solution Group Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Erayak Power Solution Group Inc. is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

Erayak Power Solution Group Inc. has an EV/EBITDA ratio of 41.32x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Erayak Power Solution Group Inc. has insufficient data to evaluate this check.

Erayak Power Solution Group Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Erayak Power Solution Group Inc. has a price-to-book ratio of 0.01x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Erayak Power Solution Group Inc. has a price-to-sales ratio of 0.01x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue