Red Cat Holdings, Inc. cash flow to debt ratio of -483.50% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Red Cat Holdings, Inc.'s free cash flow has decreased 408.89% from $-18.82M last year to $-95.78M, signaling decreasing performance

Red Cat Holdings, Inc.'s debt to equity ratio is 0.06, which means that the company's assets are healthy financed, signaling financial stability.

Red Cat Holdings, Inc.'s debt has increased relative to shareholder equity from 0.05 last year to 0.06 today, signaling weakened financials

Red Cat Holdings, Inc. has a net cash position, so leverage is healthy.

Interest expense is not separately reported in Red Cat Holdings, Inc.'s latest filing, so interest coverage cannot be calculated.

Red Cat Holdings, Inc.'s profit margin has increased (-82.08%) in the last year from -899.20% to -161.09%, signaling increasing performance

Red Cat Holdings, Inc.'s short-term assets of $226.94M exceed its short-term liabilities of $14.85M

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

Red Cat Holdings, Inc.'s return on equity of -34.96%, is lower than 15.00%, indicating bad performance

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

Red Cat Holdings, Inc. had positive net income in only 0 out of 5 years, indicating unstable earnings

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

Red Cat Holdings, Inc. has negative free cash flow, indicating cash burn

Red Cat Holdings, Inc.'s yearly earnings has decreased 10.17% since last year from $-65.42M to $-72.08M, signaling decreasing performance

Red Cat Holdings, Inc.'s yearly revenue has decreased 59.21% since last year from $17.84M to $7.28M, signaling decreasing performance

ROIC -30.74% (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.

Red Cat Holdings, Inc.'s 3-year revenue CAGR of 106.57% is positive, indicating growing revenue over the past 3 years

Red Cat Holdings, Inc. had revenue growth in 3 out of 5 years, indicating consistent revenue performance

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

Red Cat Holdings, Inc. has insufficient data to evaluate this check.

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

Red Cat Holdings, Inc. is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

Red Cat Holdings, Inc. has negative or missing EBITDA, making EV/EBITDA ratio unreliable

Red Cat Holdings, Inc. is overvalued relative to its fair value price of -13.35 based on Earnings Fair Value model

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

Red Cat Holdings, Inc. has a price-to-book ratio of 5.06x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Red Cat Holdings, Inc. has a price-to-sales ratio of 22.81x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue