Carvana Co. — Earnings Quality Grade F
CVNA · Consumer Cyclical
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 4 days, change -4 days YoY
AR growth -19.1% vs revenue growth 48.6%
Revenue grew 48.6% but CFFO only 12.9%
Expense Quality
Inventory 49.8% vs COGS 49.4%. Normal
CapEx growth 61.5% vs revenue 48.6%. Normal
SG&A/Gross Profit = 55.1%. Normal
Gross margin 20.6%, change -0.4pp. Stable
Cash Flow Quality
CFFO/NI = 0.74. Below 1.0
FCF $0.9B, FCF/NI = 0.63
Accruals ratio = 2.8%. Low accruals
Cash $2.8B covers 51% of debt $5.5B
Balance Sheet Health
Goodwill+Intangibles $0.1B = 2% of equity. Manageable
Debt/EBITDA = -50.2x. Healthy
Other assets -24.9% vs revenue 48.6%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 68% YoY
Manipulation Score
M-Score = -0.37 (> -1.78). LIKELY MANIPULATOR
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10