Strong Profit MarginsSustained high gross and healthy operating margins indicate durable pricing power and efficient cost structure. These margins provide long-term earnings resilience against input cost swings, support reinvestment in R&D or commercialization, and underpin consistent profitability over multiple quarters.
Low Financial LeverageA low debt-to-equity ratio signals limited leverage and financial flexibility. This reduces refinancing and default risk, preserves capacity to fund development or acquisitions without distress, and provides a stable capital base to support multi-quarter operational plans and strategic investments.
Good Operating Cash ConversionOCF-to-net-income >1 indicates quality of earnings and effective cash generation from core operations. Durable cash conversion supports funding of recurring expenditures, working capital needs and selective investments without immediate reliance on external funding, enhancing operational stability.