F

Amneal Pharmaceuticals, Inc. — Earnings Quality Grade F

AMRX · Healthcare

Major red flags

Revenue
$3.0B
2025
Net Income
$72M
2025
Gross Margin
36.9%
Free Cash Flow
$226M
01

Screening Summary

12
Passed
2
Watch
3
Failed
-2.75
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 108 days, change +7 days YoY

A2AR vs Revenue Growth

AR outpaced revenue for 2 consecutive years

A3Revenue vs CFFO

Revenue 8.0%, CFFO 15.2%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory -1.0% vs COGS 7.4%. Normal

!
B2CapEx vs Revenue

CapEx growth 52.5% is >2x revenue growth 8.0%

B3SG&A Ratio

SG&A/Gross Profit = 47.3%. Normal

B4Gross Margin

Gross margin 36.9%, change +0.4pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 4.72. Profits backed by cash

C2Free Cash Flow

FCF $0.2B, FCF/NI = 3.13

C3Accruals Ratio

Accruals ratio = -7.3%. Low accruals

C4Cash vs Debt

Cash $0.3B covers only 10% of debt $2.7B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $1.2B = -1637% of equity. Manageable

D2Leverage

Debt/EBITDA = 4.5x (>4x). Interest coverage = 1.7x (<2x). Financial stress

!
D3Soft Asset Growth

Other assets grew 76.3% vs revenue 8.0%

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change -13% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.75 (< -2.22). Unlikely manipulator

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04

Beneish M-Score

Manipulation Probability-2.75
-4.0 Clean-2.22 Grey-1.78 Danger0
1.068
DSRI
AR growing faster than revenue?
0.99
GMI
Gross margin declining?
0.833
AQI
Asset quality deteriorating?
1.08
SGI
Revenue growth rate
1.076
DEPI
Depreciation slowing?
1.023
SGAI
SG&A ratio changing?
-0.0728
TATA
Accruals level
0.997
LVGI
Leverage increasing?
05

Altman Z-Score

2.04
Grey Zone
0 Distress1.102.605.0+ Safe
0.2799
Liquidity
-0.1454
Cumulative profit
0.1034
Operating efficiency
-0.0189
Leverage

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