CareDx, Inc. — Earnings Quality Grade F
CDNA · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 41 days, change -30 days YoY
AR growth -34.0% vs revenue growth 13.8%
Revenue 13.8%, CFFO 10.5%. Cash follows revenue
Expense Quality
Inventory growth 36.9% exceeds COGS 12.3%
CapEx growth 1.6% vs revenue 13.8%. Normal
SG&A/Gross Profit = 81.9%, exceeds 70%
Gross margin 67.6%, change +0.4pp. 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 $0.0B, FCF/NI = -1.66
Accruals ratio = -15.3%. Low accruals
Cash $0.2B covers debt $0.0B
Balance Sheet Health
Goodwill+Intangibles $0.1B = 24% of equity. Manageable
Debt/EBITDA = -5.6x. Healthy
Other assets grew 39.1% vs revenue 13.8%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -8% YoY. Normal
Manipulation Score
M-Score = -3.33 (< -2.22). Unlikely manipulator
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Beneish M-Score
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Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25