Unity Software Inc. cash flow to debt ratio of 17.73% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Unity Software Inc.'s free cash flow has increased 47.88% from $273.14M last year to $403.93M, signaling increasing performance

Unity Software Inc.'s debt to equity ratio is 0.74, which means that the company's assets are unhealthy financed, signaling financial risk.

Unity Software Inc.'s debt has increased relative to shareholder equity from 0.74 last year to 0.74 today, signaling weakened financials

Unity Software Inc. has a net debt to EBITDA ratio of 3.68x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Unity Software Inc.'s interest coverage ratio is -25.16, which means that the company struggles to meet interest obligations, signaling financial risk.

Unity Software Inc.'s profit margin has increased (-21.01%) in the last year from -36.63% to -28.93%, signaling increasing performance

Unity Software Inc.'s short-term assets of $2.81B exceed its short-term liabilities of $1.53B

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

Unity Software Inc.'s return on equity of -18.85%, is lower than 15.00%, indicating bad performance

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

Unity Software Inc. had positive net income in only 0 out of 5 years, indicating unstable earnings

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

Unity Software Inc. has a free cash flow yield of 2.15%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Unity Software Inc.'s yearly earnings has increased -39.35% since last year from $-664.11M to $-402.76M, signaling increasing performance

Unity Software Inc.'s yearly revenue has increased 2.01% since last year from $1.81B to $1.85B, signaling increasing performance

ROIC -10.69% (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.

Unity Software Inc.'s 3-year revenue CAGR of 9.96% is positive, indicating growing revenue over the past 3 years

Unity Software Inc. had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Unity Software Inc. had positive ROE in only 0 out of 5 years, indicating inconsistent returns on equity

Unity Software Inc. has insufficient data to evaluate this check.

Unity Software Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Unity Software Inc. is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

Unity Software Inc. has an EV/EBITDA ratio of 213.30x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Unity Software Inc. has insufficient data to evaluate this check.

Unity Software Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Unity Software Inc. has a price-to-book ratio of 5.71x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Unity Software Inc. has a price-to-sales ratio of 9.30x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue