F

ACRES Commercial Realty Corp. — Earnings Quality Grade F

ACR · Real Estate

Major red flags

Revenue
$92M
2025
Net Income
$21M
2025
Gross Margin
Free Cash Flow
$4M
01

Screening Summary

7
Passed
1
Watch
4
Failed
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO surged by 55 days (54 → 109)

Small-cap context: DSO swings on a small revenue base are more often quarterly customer-mix effects than red flags.

A2AR vs Revenue Growth

AR outpaced revenue for 2 consecutive years

A3Revenue vs CFFO

Revenue -8.0%, CFFO -78.8%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

!
B2CapEx vs Revenue

CapEx growth 1962.5% is >2x revenue growth -8.0%

B3SG&A Ratio

Insufficient data

B4Gross Margin

Insufficient data

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 0.19. Only 19% of profit backed by cash

Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.

C2Free Cash Flow

FCF $0.0B, FCF/NI = 0.18

C3Accruals Ratio

Accruals ratio = 0.8%. Low accruals

C4Cash vs Debt

Cash $0.1B covers only 5% of debt $1.6B

04

Balance Sheet Health

D1Goodwill + Intangibles

No goodwill. Clean balance sheet

D2Leverage

Insufficient data

D3Soft Asset Growth

Insufficient data

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change -100% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

Insufficient data

Portfolio monitoring

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Altman Z-Score — Not Applicable

ACRES Commercial Realty Corp. is a financial company. Z-Score is designed for non-financial companies.

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25