B

Electromed, Inc. — Earnings Quality Grade B

ELMD · Healthcare

Generally healthy

Revenue
$64M
2025
Net Income
$8M
2025
Gross Margin
78.1%
Free Cash Flow
$11M
01

Screening Summary

12
Passed
2
Watch
0
Failed
-2.77
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 141 days, change -15 days YoY

A2AR vs Revenue Growth

AR growth 5.7% vs revenue growth 17.0%

A3Revenue vs CFFO

Revenue 17.0%, CFFO 25.7%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory -11.1% vs COGS 8.0%. Normal

B2CapEx vs Revenue

CapEx growth -22.5% vs revenue 17.0%. Normal

!
B3SG&A Ratio

SG&A/Gross Profit = 78.7%, exceeds 70%

B4Gross Margin

Gross margin 78.1%, change +1.8pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.51. Profits backed by cash

C2Free Cash Flow

FCF $0.0B, FCF/NI = 1.47

C3Accruals Ratio

Accruals ratio = -7.2%. Low accruals

C4Cash vs Debt

Insufficient data

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.0B = 3% of equity. Manageable

D2Leverage

Insufficient data

D3Soft Asset Growth

Insufficient data

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

!
E2Goodwill Surge

Goodwill+Intangibles surged 101% YoY

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.77 (< -2.22). Unlikely manipulator

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04

Beneish M-Score

Manipulation Probability-2.77
-4.0 Clean-2.22 Grey-1.78 Danger0
0.904
DSRI
AR growing faster than revenue?
0.977
GMI
Gross margin declining?
1.316
AQI
Asset quality deteriorating?
1.17
SGI
Revenue growth rate
0.717
DEPI
Depreciation slowing?
0.975
SGAI
SG&A ratio changing?
-0.0717
TATA
Accruals level
1.324
LVGI
Leverage increasing?
05

Altman Z-Score

10.99
Safe Zone
0 Distress1.102.605.0+ Safe
0.6434
Liquidity
0.3938
Cumulative profit
0.1795
Operating efficiency
4.079
Leverage

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