Sound Point Meridian Capital Inc cash flow to debt ratio of 11.22% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Sound Point Meridian Capital Inc's free cash flow has increased -106.33% from $-106.38M last year to $6.73M, signaling increasing performance

Sound Point Meridian Capital Inc's debt to equity ratio is 0.30, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.

Sound Point Meridian Capital Inc's debt has increased relative to shareholder equity from 0.24 last year to 0.30 today, signaling weakened financials

Sound Point Meridian Capital Inc has negative EBITDA, making leverage ratio unreliable

Sound Point Meridian Capital Inc earns at least as much interest as it pays. Interest obligations are fully covered.

Sound Point Meridian Capital Inc's profit margin has decreased (-466.88%) in the last year from 25.09% to -92.05%, signaling decreasing performance

Sound Point Meridian Capital Inc's short-term assets of $5.81M exceed its short-term liabilities of $3.98M

Sound Point Meridian Capital Inc's return on assets of 0.00% is lower than the 5.00% threshold, indicating inefficient asset utilization

Sound Point Meridian Capital Inc's return on equity of -37.26%, is lower than 15.00%, indicating bad performance

Sound Point Meridian Capital Inc's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Sound Point Meridian Capital Inc had positive net income in 3.00 out of 5 years, indicating stable and consistent earnings

Sound Point Meridian Capital Inc has positive free cash flow, indicating the company generates cash after capital expenditures

Sound Point Meridian Capital Inc has a free cash flow yield of 3.33%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Sound Point Meridian Capital Inc's yearly earnings has decreased -817.19% since last year from $17.60M to $-126.23M, signaling decreasing performance

Sound Point Meridian Capital Inc's yearly revenue has decreased -267.38% since last year from $64.51M to $-107.97M, signaling decreasing performance

ROIC -22.34% (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.

Sound Point Meridian Capital Inc's 3-year revenue CAGR of -100.00% is negative, indicating declining revenue over the past 3 years

Sound Point Meridian Capital Inc had revenue growth in only 2.00 out of 5 years, indicating inconsistent revenue performance

Sound Point Meridian Capital Inc had positive ROE in only 2.00 out of 5 years, indicating inconsistent returns on equity

Sound Point Meridian Capital Inc has insufficient data to evaluate this check.

Sound Point Meridian Capital Inc has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Sound Point Meridian Capital Inc is overvalued relative to its fair value price of 7.84 based on EBITDA multiple model

Sound Point Meridian Capital Inc has negative or missing EBITDA, making EV/EBITDA ratio unreliable

Sound Point Meridian Capital Inc has insufficient data to evaluate this check.

Sound Point Meridian Capital Inc has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Sound Point Meridian Capital Inc has a price-to-book ratio of 1.02x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Sound Point Meridian Capital Inc has a price-to-sales ratio of 1.57x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue