Heron Therapeutics, Inc. — Earnings Quality Grade F
HRTX · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO increased by 12 days
AR outpaced revenue for 2 consecutive years
Revenue 7.4%, CFFO -22.5%. Cash follows revenue
Expense Quality
Inventory growth 74.5% exceeds COGS 7.0%
CapEx growth -81.4% vs revenue 7.4%. Normal
SG&A/Gross Profit = 91.3%, exceeds 70%
Gross margin 73.3%, change +0.1pp. Stable
Cash Flow Quality
CFFO/NI = 1.37. Profits backed by cash
FCF is negative ($-0.0B)
Accruals ratio = 2.9%. Low accruals
Cash $0.0B covers only 33% of debt $0.1B
Balance Sheet Health
No goodwill. Clean balance sheet
Interest coverage = -0.3x (<2x). Financial stress
Other assets -16.6% vs revenue 7.4%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
No goodwill
Manipulation Score
M-Score = -2.28 (< -2.22). Unlikely manipulator
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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