Direct Digital Holdings, Inc. cash flow to debt ratio of -68.63% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Direct Digital Holdings, Inc.'s free cash flow has decreased 3.80% from $-8.66M last year to $-8.99M, signaling decreasing performance

Direct Digital Holdings, Inc.'s debt to equity ratio is -3.83, signaling that the company spent its equity and risk bankruptcy.

Direct Digital Holdings, Inc.'s debt to equity ratio is -3.83, signaling that the company spent its equity and risk bankruptcy.

Direct Digital Holdings, Inc. has negative EBITDA, making leverage ratio unreliable

Direct Digital Holdings, Inc.'s interest coverage ratio is -5.04, which means that the company struggles to meet interest obligations, signaling financial risk.

Direct Digital Holdings, Inc.'s profit margin has decreased (556.79%) in the last year from -10.01% to -65.75%, signaling decreasing performance

Direct Digital Holdings, Inc.'s short-term liabilities of $26.43M exceed its short-term assets of $4.74M, signaling financial risk

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

Direct Digital Holdings, Inc.'s return on equity of 479.42%, is higher than 15.00%, indicating good performance

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

Direct Digital Holdings, Inc. had positive net income in only 1.00 out of 5 years, indicating unstable earnings

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

Direct Digital Holdings, Inc. has negative free cash flow, indicating cash burn

Direct Digital Holdings, Inc.'s yearly earnings has decreased 203.82% since last year from $-6.24M to $-18.95M, signaling decreasing performance

Direct Digital Holdings, Inc.'s yearly revenue has decreased -44.30% since last year from $62.29M to $34.69M, signaling decreasing performance

ROIC -181.74% (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.

Direct Digital Holdings, Inc.'s 3-year revenue CAGR of -27.05% is negative, indicating declining revenue over the past 3 years

Direct Digital Holdings, Inc. had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance

Direct Digital Holdings, Inc. had positive ROE in only 1.00 out of 5 years, indicating inconsistent returns on equity

Direct Digital Holdings, Inc. has insufficient data to evaluate this check.

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

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

Direct Digital Holdings, Inc. has negative or missing EBITDA, making EV/EBITDA ratio unreliable

Direct Digital Holdings, Inc. is overvalued relative to its fair value price of -30.32 based on Earnings Fair Value model

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

Direct Digital Holdings, Inc. has negative shareholder equity; price-to-book is not meaningful and the check fails

Direct Digital Holdings, Inc. has a price-to-sales ratio of 0.04x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue