quality score

quality score AI+
Aaron 09-15 SoFi Technologies, Inc. Public
US:SOFI

why is the quality score on SoFi so low

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AI+ Standard 09-15
Dette svar blev genereret af AI. Selvom vi stræber efter nøjagtighed, kan det indeholde fejl.

It appears you're referring to Fintel's proprietary Quality Score, which for SoFi Technologies, Inc. (SOFI) is currently quite low, around 17.62/100 or 21.43/100 depending on the specific data point, which is significantly below the average score of 50.

Fintel's Quality Score is designed to identify high-quality companies based on their cash-generating efficiencies. Scores range from 0 to 100, with 100 being the most desirable.

The low Quality Score for SoFi can be attributed to several key metrics related to its cash generation and return on capital:

  • Return on Assets (ROA): SoFi's ROA is reported at 0.02. This indicates that the company generates very little profit for each dollar of assets it owns.
  • Return on Equity (ROE): The ROE stands at 0.10. While positive, it suggests a relatively modest return for shareholders' equity.
  • Return on Invested Capital (ROIC): SoFi's ROIC is 0.05. This metric measures how efficiently a company is using its invested capital to generate profits. A low ROIC suggests inefficiency.
  • Cash Return on Invested Capital (CROIC): This is a critical factor for cash-generating efficiencies, and SoFi's CROIC is negative, at -0.13 or -0.00. A negative CROIC implies that the company is not generating positive cash flow from its operations relative to the total capital invested, which is a significant concern for "quality" from a cash efficiency perspective.
  • Operating Cash Return on Invested Capital (OCROIC): Similarly, SoFi's OCROIC is also negative, at -0.17 or -0.26. This further reinforces the observation that the company struggles with generating sufficient operating cash flow from its capital.

In essence, while SoFi is a growth-oriented company in the financial services sector, its current financial metrics indicate challenges in converting its operations and investments into strong cash flows and returns on capital, leading to a low Fintel Quality Score.

You can explore these metrics and other factor scores for SoFi directly on Fintel's platform to gain a deeper understanding of its financial health and how it compares to other companies in the global investing universe.

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Aaron 09-15

how often is this updated


AI+ Standard 09-15
Dette svar blev genereret af AI. Selvom vi stræber efter nøjagtighed, kan det indeholde fejl.

The Fintel Quality Score, which is based on metrics like Return on Assets (ROA), Return on Equity (ROE), Return on Invested Capital (ROIC), Cash Return on Invested Capital (CROIC), and Operating Cash Return on Invested Capital (OCROIC), is updated quarterly. This aligns with the release of new financial statements (10-Q and 10-K filings) by companies, which provide the underlying data for these calculations.

While some other scores and data points on Fintel, such as Dividend Score or Dividend Yield, might be updated daily or monthly, the Quality Score's reliance on comprehensive financial reports means its update frequency is tied to the company's reporting schedule.

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