F

Chatham Lodging Trust (REIT) — Earnings Quality Grade F

CLDT · Real Estate

Major red flags

Revenue
$295M
2025
Net Income
$15M
2025
Gross Margin
34.9%
Free Cash Flow
$64M
01

Screening Summary

14
Passed
2
Watch
1
Failed
-2.66
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 4 days, change +0 days YoY

A2AR vs Revenue Growth

AR growth -3.1% vs revenue growth -7.0%

A3Revenue vs CFFO

Revenue -7.0%, CFFO -13.2%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

B2CapEx vs Revenue

CapEx growth -84.3% vs revenue -7.0%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 16.1%, excellent (<30%)

B4Gross Margin

Gross margin 34.9%, change -0.2pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 4.26. Profits backed by cash

C2Free Cash Flow

FCF $0.1B, FCF/NI = 4.25

C3Accruals Ratio

Accruals ratio = -4.2%. Low accruals

C4Cash vs Debt

Cash $0.0B covers only 7% of debt $0.4B

04

Balance Sheet Health

D1Goodwill + Intangibles

No goodwill. Clean balance sheet

!
D2Leverage

Interest coverage = 1.1x (<2x). Financial stress

!
D3Soft Asset Growth

Other assets grew 32.5% vs revenue -7.0%

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

No goodwill

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.66 (< -2.22). Unlikely manipulator

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04

Beneish M-Score

Manipulation Probability-2.66
-4.0 Clean-2.22 Grey-1.78 Danger0
1.042
DSRI
AR growing faster than revenue?
1.006
GMI
Gross margin declining?
0.995
AQI
Asset quality deteriorating?
0.93
SGI
Revenue growth rate
0.995
DEPI
Depreciation slowing?
0.97
SGAI
SG&A ratio changing?
-0.0419
TATA
Accruals level
0.903
LVGI
Leverage increasing?

Altman Z-Score — Not Applicable

Chatham Lodging Trust (REIT) is a financial company. Z-Score is designed for non-financial companies.

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