Arcutis Biotherapeutics, Inc. — Earnings Quality Grade F
ARQT · Healthcare
Major red flags
Screening Summary
Management Signals
Source: SEC EDGAR 8-K Item 5.02, with exhibit links when available
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 142 days, change +6 days YoY
AR growth 100.1% vs revenue growth 91.3%
Revenue 91.3%, CFFO 95.0%. Cash follows revenue
Expense Quality
Inventory 55.8% vs COGS 91.8%. Normal
CapEx growth 107.8% vs revenue 91.3%. Normal
SG&A/Gross Profit = 80.9%, exceeds 70%
Gross margin 90.2%, change -0.0pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
FCF is negative ($-0.0B)
Accruals ratio = -2.4%. Low accruals
Cash $0.2B covers debt $0.1B
Balance Sheet Health
No goodwill. Clean balance sheet
Debt/EBITDA = 64.2x (>4x). Interest coverage = -1.0x (<2x). Financial stress
Other assets 138.1% vs revenue 91.3%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
No goodwill
Manipulation Score
M-Score = -1.57 (> -1.78). LIKELY MANIPULATOR
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25