Gyre Therapeutics, Inc. — Earnings Quality Grade F
GYRE · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 30 days (68 → 97)
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 10.2%, CFFO 127.7%. Cash follows revenue
Expense Quality
Inventory growth 60.5% exceeds COGS 39.4%
CapEx growth -38.5% vs revenue 10.2%. Normal
SG&A/Gross Profit = 77.3%, exceeds 70%
Gross margin 95.4%, change -1.0pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
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 = 2.4%. Low accruals
Cash $0.1B covers debt $0.0B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 6% of equity. Manageable
Debt/EBITDA = 0.1x. Healthy
Other assets -17.8% vs revenue 10.2%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles surged 261% YoY
Manipulation Score
M-Score = -1.89 (grey zone)
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25