Designer Brands Inc. — Earnings Quality Grade F
DBI · Consumer Cyclical
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 5 days, change +0 days YoY
AR outpaced revenue for 2 consecutive years
Revenue -3.9%, CFFO 33.6%. Cash follows revenue
Expense Quality
Inventory -6.0% vs COGS -5.3%. Normal
CapEx growth -37.9% vs revenue -3.9%. Normal
Insufficient data
Gross margin 43.6%, change +0.8pp. Stable
Cash Flow Quality
CFFO/NI = -13.12. Below 1.0
FCF $0.1B, FCF/NI = -9.34
Accruals ratio = -6.1%. Low accruals
Cash $0.1B covers only 4% of debt $1.2B
Balance Sheet Health
Goodwill+Intangibles $0.2B = 75% of equity. Over 50%
Debt/EBITDA = 11.3x (>4x). Interest coverage = 0.9x (<2x). Financial stress
Other assets -6.4% vs revenue -3.9%. Normal
Write-offs normal
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -1% YoY. Normal
Manipulation Score
Insufficient data
Portfolio monitoring
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Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25