Hertz Global Holdings, Inc — Earnings Quality Grade F
HTZ · Industrials
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 48 days, change -1 days YoY
AR growth -7.9% vs revenue growth -6.0%
Revenue -6.0%, CFFO -26.9%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth -3.3% vs revenue -6.0%. Normal
SG&A/Gross Profit = 98.6%, exceeds 70%
Gross margin swung +15.7pp (-4.3% → 11.4%)
Cash Flow Quality
CFFO/NI = -2.18. Below 1.0
FCF is negative ($-8.7B)
Accruals ratio = -10.6%. Low accruals
Cash $0.6B covers only 3% of debt $19.3B
Balance Sheet Health
Goodwill+Intangibles $3.9B = -850% of equity. Manageable
Debt/EBITDA = 7.7x (>4x). Interest coverage = 0.0x (<2x). Financial stress
Other assets -12.5% vs revenue -6.0%. 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.
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
M-Score = -3.76 (< -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