F

Crescent Energy Company — Earnings Quality Grade F

CRGY · Energy

Major red flags

Revenue
$3.6B
2025
Net Income
$133M
2025
Gross Margin
78.6%
Free Cash Flow
-$90M
01

Screening Summary

11
Passed
3
Watch
3
Failed
-2.87
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 76 days, change +8 days YoY

!
A2AR vs Revenue Growth

AR growth 37.0% exceeds revenue growth 22.1%

A3Revenue vs CFFO

Revenue 22.1%, CFFO 37.4%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

B2CapEx vs Revenue

CapEx growth 42.2% vs revenue 22.1%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 27.8%, excellent (<30%)

B4Gross Margin

Gross margin 78.6%, change +0.1pp. Stable

03

Cash Flow Quality

!
C1CFFO vs Net Income

CFFO far exceeds NI (ratio 12.6x). Non-cash charges depressing profits

C2Free Cash Flow

FCF < 50% of Net Income for 2 years

C3Accruals Ratio

Accruals ratio = -12.4%. Low accruals

C4Cash vs Debt

Cash $0.0B covers only 0% of debt $5.7B

04

Balance Sheet Health

D1Goodwill + Intangibles

No goodwill. Clean balance sheet

!
D2Leverage

Interest coverage = 1.5x (<2x). Financial stress

D3Soft Asset Growth

Other assets -26.8% vs revenue 22.1%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions negative for 3 years

E2Goodwill Surge

No goodwill

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.87 (< -2.22). Unlikely manipulator

Portfolio monitoring

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04

Beneish M-Score

Manipulation Probability-2.87
-4.0 Clean-2.22 Grey-1.78 Danger0
1.122
DSRI
AR growing faster than revenue?
0.999
GMI
Gross margin declining?
0.991
AQI
Asset quality deteriorating?
1.221
SGI
Revenue growth rate
1
DEPI
Depreciation slowing?
1.104
SGAI
SG&A ratio changing?
-0.1243
TATA
Accruals level
1.288
LVGI
Leverage increasing?
05

Altman Z-Score

1.33
Grey Zone
0 Distress1.102.605.0+ Safe
0.0484
Liquidity
0
Cumulative profit
0.0402
Operating efficiency
0.7087
Leverage

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