Lumentum Holdings Inc. cash flow to debt ratio of 7.56% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Lumentum Holdings Inc.'s free cash flow has increased -5.93% from $-111.30M last year to $-104.70M, signaling increasing performance

Lumentum Holdings Inc.'s debt to equity ratio is 0.36, which means that the company's assets are healthy financed, signaling financial stability.

Lumentum Holdings Inc.'s debt has decreased relative to shareholder equity from 2.30 last year to 0.36 today, signaling strengthened financials

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

Lumentum Holdings Inc.'s interest coverage ratio of 24.07 indicates that earnings with good margin can cover interest payments on company debt

Lumentum Holdings Inc.'s profit margin has decreased (14.71K%) in the last year from 1.57% to -230.10%, signaling decreasing performance

Lumentum Holdings Inc.'s short-term assets of $4.16B exceed its short-term liabilities of $2.48B

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

Lumentum Holdings Inc.'s return on equity of -300.07%, is lower than 15.00%, indicating bad performance

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

Lumentum Holdings Inc. had positive net income in only 2 out of 5 years, indicating unstable earnings

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

Lumentum Holdings Inc. has negative free cash flow, indicating cash burn

Lumentum Holdings Inc.'s yearly earnings has decreased 26.88K% since last year from $25.90M to $-6.94B, signaling decreasing performance

Lumentum Holdings Inc.'s yearly revenue has increased 83.22% since last year from $1.65B to $3.01B, signaling increasing performance

ROIC 7.88% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Lumentum Holdings Inc.'s 3-year revenue CAGR of 19.48% is positive, indicating growing revenue over the past 3 years

Lumentum Holdings Inc. had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Lumentum Holdings Inc. had positive ROE in only 2 out of 5 years, indicating inconsistent returns on equity

Lumentum Holdings Inc. has insufficient data to evaluate this check.

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

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

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

Lumentum Holdings Inc. is overvalued relative to its fair value price of -38.77 based on Earnings Fair Value model

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

Lumentum Holdings Inc. has a price-to-book ratio of 14.38x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Lumentum Holdings Inc. has a price-to-sales ratio of 22.15x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue