Twilio Inc. cash flow to debt ratio of 96.05% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Twilio Inc.'s free cash flow has increased 57.12% from $657.46M last year to $1.03B, signaling increasing performance

Twilio Inc.'s debt to equity ratio is 0.01, which means that the company's assets are healthy financed, signaling financial stability.

Twilio Inc.'s debt has decreased relative to shareholder equity from 0.14 last year to 0.01 today, signaling strengthened financials

Twilio Inc. has a net cash position, so leverage is healthy.

Twilio Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Twilio Inc.'s profit margin has increased (-940.04%) in the last year from -2.45% to 20.62%, signaling increasing performance

Twilio Inc.'s short-term assets of $3.58B exceed its short-term liabilities of $887.01M

Twilio Inc.'s return on assets of 10.60% is higher than the 5.00% threshold, indicating efficient asset utilization

Twilio Inc.'s return on equity of 14.15%, is lower than 15.00%, indicating bad performance

Twilio Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

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

Twilio Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Twilio Inc. has a free cash flow yield of 2.72%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Twilio Inc.'s yearly earnings has increased -130.93% since last year from $-109.40M to $33.83M, signaling increasing performance

Twilio Inc.'s yearly revenue has increased 13.66% since last year from $4.46B to $5.07B, signaling increasing performance

ROIC 3.05% (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.

Twilio Inc.'s 3-year revenue CAGR of 9.82% is positive, indicating growing revenue over the past 3 years

Twilio Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

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

Twilio Inc. has insufficient data to evaluate this check.

Twilio Inc. has an earnings yield of 3.01%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Twilio Inc. is overvalued relative to its fair value price of 9.60 based on EBITDA multiple model

Twilio Inc. has an EV/EBITDA ratio of 145.94x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Twilio Inc. is overvalued relative to its fair value price of -57.67 based on Earnings Fair Value model

Twilio Inc. had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

Twilio Inc. has a price-to-book ratio of 4.26x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Twilio Inc. has a price-to-sales ratio of 6.86x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue