Rent the Runway, Inc. cash flow to debt ratio of 1.77% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Rent the Runway, Inc.'s free cash flow has decreased 14.50% from $-40.70M last year to $-46.60M, signaling decreasing performance

Rent the Runway, Inc.'s debt to equity ratio is -3.70, signaling that the company spent its equity and risk bankruptcy.

Rent the Runway, Inc.'s debt to equity ratio is -3.70, signaling that the company spent its equity and risk bankruptcy.

Rent the Runway, Inc. has a net debt to EBITDA ratio of 6.63x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Rent the Runway, Inc.'s interest coverage ratio is -4.02, which means that the company struggles to meet interest obligations, signaling financial risk.

Rent the Runway, Inc.'s profit margin has increased (-137.29%) in the last year from -22.83% to 8.51%, signaling increasing performance

Rent the Runway, Inc.'s short-term assets of $66.70M exceed its short-term liabilities of $63.20M

Rent the Runway, Inc.'s return on assets of 14.01% is higher than the 5.00% threshold, indicating efficient asset utilization

Rent the Runway, Inc.'s return on equity of -33.43%, is lower than 15.00%, indicating bad performance

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

Rent the Runway, Inc. had positive net income in only 1.00 out of 5 years, indicating unstable earnings

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

Rent the Runway, Inc. has negative free cash flow, indicating cash burn

Rent the Runway, Inc.'s yearly earnings has increased -132.33% since last year from $-69.90M to $22.60M, signaling increasing performance

Rent the Runway, Inc.'s yearly revenue has increased 7.71% since last year from $306.20M to $329.80M, signaling increasing performance

ROIC -39.49% (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.

Rent the Runway, Inc.'s 3-year revenue CAGR of 3.62% is positive, indicating growing revenue over the past 3 years

Rent the Runway, Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance

Rent the Runway, Inc. had positive ROE in only 0.00 out of 5 years, indicating inconsistent returns on equity

Rent the Runway, Inc. has insufficient data to evaluate this check.

Rent the Runway, Inc. has an earnings yield of 27.52%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Rent the Runway, Inc. is overvalued relative to its fair value price of 1.90 based on EBITDA multiple model

Rent the Runway, Inc. has an EV/EBITDA ratio of 7.26x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Rent the Runway, Inc. is overvalued relative to its fair value price of -128.46 based on Earnings Fair Value model

Rent the Runway, Inc. has a PEG-ratio under 1 which is considered undervalued

Rent the Runway, Inc. has negative shareholder equity; price-to-book is not meaningful and the check fails

Rent the Runway, Inc. has a price-to-sales ratio of 0.31x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue