Axsome Therapeutics, Inc. — Earnings Quality Grade F
AXSM · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 128 days, change -6 days YoY
AR growth 58.1% vs revenue growth 65.5%
Revenue 65.5%, CFFO 27.3%. Cash follows revenue
Expense Quality
Inventory growth 77.6% exceeds COGS 42.6%
CapEx growth 77.8% vs revenue 65.5%. Normal
SG&A/Gross Profit = 96.5%, exceeds 70%
Gross margin 92.6%, change +1.2pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
FCF is negative ($-0.1B)
Accruals ratio = -13.0%. Low accruals
Cash $0.3B covers debt $0.2B
Balance Sheet Health
Goodwill+Intangibles $0.1B = 60% of equity. Over 50%
Interest coverage = -25.8x (<2x). Financial stress
Other assets 44.8% vs revenue 65.5%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Goodwill+Intangibles change -11% YoY. Normal
Manipulation Score
M-Score = -2.48 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25