-4%Return on invested capital. Return on invested capital is -4% and slipping from 18% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+32186698.9%/yrShare-count dilution. Diluted share count changed +96560097% over the last 3 years to FY2025 (+32186698.9%/yr). The count is GROWING — existing holders are being diluted. That's ~32186698.9% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~96560097%.
10% of revStock-based comp load. Stock-based compensation ran 10% of revenue and 97% of free cash flow in FY2025 — about $2.87 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
110% of FCFShareholder returns. Returned $128M to shareholders (buybacks + dividends) in FY2025 — 110% of free cash flow. More than free cash flow generated — and beyond operating cash too, so the extra is coming from debt or cash reserves, which isn't sustainable indefinitely.
+16.2%Accruals ratio. Net operating assets grew +16.2% relative to their average in FY2025 — the accrual component of earnings. Accruals are building faster than is comfortable — part of profit sits in receivables, inventory or capitalized costs rather than cash. The cash-flow cross-check agrees: reported earnings ran behind operating cash by -11% of net operating assets.
86dInventory days. Days inventory outstanding moved from 80 to 86 FY2024→FY2025 (against cost of goods sold; inventory +22% vs +14% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.