America's Car-Mart, Inc. — Earnings Quality Grade F
CRMT · Consumer Cyclical
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 22 days (288 → 310)
Small-cap context: DSO swings on a small revenue base are more often quarterly customer-mix effects than red flags.
AR outpaced revenue for 2 consecutive years
Revenue -0.2%, CFFO 34.0%. Cash follows revenue
Expense Quality
Inventory 4.4% vs COGS -4.3%. Normal
CapEx growth -36.7% vs revenue -0.2%. Normal
SG&A/Gross Profit = 28.4%, excellent (<30%)
Gross margin 47.8%, change +2.2pp. Stable
Cash Flow Quality
CFFO/NI = -2.72. Only -272% of profit backed by cash
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF < 50% of Net Income for 2 years
Accruals ratio = 4.2%. Low accruals
Cash $0.0B covers only 1% of debt $0.8B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 4% of equity. Manageable
Debt/EBITDA = 8.4x (>4x). Interest coverage = 1.3x (<2x). Financial stress
Other assets grew 21.8% vs revenue -0.2%
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 58% YoY
Manipulation Score
M-Score = -2.16 (grey zone)
Portfolio monitoring
Monitor CRMT continuously
The full checks and model details are free to read. Use Watchlist to track your holdings; Pro adds automatic quarterly rescoring, risk-event email alerts, scans up to 50 tickers, and export workflows.
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25