Direct Digital Holdings Inc (DRCT) — Cash Flow Quality Index

Latest as of September 2023: 0.45x

Direct Digital Holdings Inc (DRCT) has a Cash Flow Quality Index of 0.45x as of September 2023. Operating cash flow of $1.49 Million is below net income of $3.35 Million, suggesting accrual-heavy earnings not yet converted to cash. Explore DRCT operating cash flow to total debt to assess how comfortably operating cash covers total debt obligations.

Cash Flow Quality Index

0.45x
Operating CF / Net Income

Operating Cash Flow

$1.49 Million
USD

Net Income

$3.35 Million
USD

Data as of

Sep 2023
Most recent filing

Direct Digital Holdings Inc Cash Flow Quality Index (2022–2023)

Historical Cash Flow Quality Index for Direct Digital Holdings Inc across 2 annual periods. Values consistently above 1.0x indicate high-quality earnings. For the full cash flow conversion analysis, see Direct Digital Holdings Inc cash conversion from operations.

Annual Cash Flow Quality Index for Direct Digital Holdings Inc (2022–2023)

Year-by-year earnings quality comparison for Direct Digital Holdings Inc.

Year Quality Index Operating CF (USD) Net Income YoY Change
2023 1.42x $2.82 Million $1.99 Million ▲ +94.5%
2022 0.73x $2.13 Million $2.92 Million
Cash Flow Quality Index = Operating Cash Flow / Net Income. Ratios above 1.0x indicate cash-backed earnings.