Herbalife Ltd. — Earnings Quality Grade F
HLF · Consumer Defensive
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 7 days, change +2 days YoY
AR growth 33.4% exceeds revenue growth 0.9%
Revenue 0.9%, CFFO 16.8%. Cash follows revenue
Expense Quality
Inventory 7.6% vs COGS 0.9%. Normal
CapEx growth -34.1% vs revenue 0.9%. Normal
SG&A/Gross Profit = 87.9%, exceeds 70%
Gross margin 77.9%, change -0.0pp. Stable
Cash Flow Quality
CFFO/NI = 1.46. Profits backed by cash
FCF $0.3B, FCF/NI = 1.11
Accruals ratio = -3.8%. Low accruals
Cash $0.4B covers only 16% of debt $2.2B
Balance Sheet Health
Goodwill+Intangibles $0.4B = -81% of equity. Manageable
Debt/EBITDA = 3.6x. Healthy
Other assets 0.6% vs revenue 0.9%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 4% YoY. Normal
Manipulation Score
M-Score = -2.29 (< -2.22). Unlikely manipulator
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