Bally's Corporation — Earnings Quality Grade F
BALY · Consumer Cyclical
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 ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 21 days (8 → 29)
Small-cap context: DSO swings on a small revenue base are more often quarterly customer-mix effects than red flags.
AR growth 249.5% exceeds revenue growth 0.1%
Revenue 0.1%, CFFO -39.6%. Cash follows revenue
Expense Quality
Inventory growth 189.1% exceeds COGS 1.6%
CapEx growth -50.8% vs revenue 0.1%. Normal
SG&A/Gross Profit = 73.5%, exceeds 70%
Gross margin 54.2%, change -0.7pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.1B)
Accruals ratio = -6.1%. Low accruals
Cash $0.8B covers only 12% of debt $6.4B
Balance Sheet Health
Goodwill+Intangibles $6.4B = 647% of equity. Over 50%
Debt/EBITDA = 55.2x (>4x). Interest coverage = -0.1x (<2x). Financial stress
Other assets grew 376.8% vs revenue 0.1%
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles surged 107% YoY
Manipulation Score
M-Score = -0.34 (> -1.78). LIKELY MANIPULATOR
Small-cap context: Beneish M-Score was calibrated on large-caps; small-cap DSO/inventory volatility mechanically inflates it.
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25