iRhythm Holdings, Inc. — Earnings Quality Grade F
IRTC · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 37 days, change -12 days YoY
AR growth -5.3% vs revenue growth 26.2%
Revenue 26.2%, CFFO 2285.3%. Cash follows revenue
Expense Quality
Inventory growth 54.1% exceeds COGS 19.3%
CapEx growth -5.3% vs revenue 26.2%. Normal
SG&A/Gross Profit = 93.4%, exceeds 70%
Gross margin 70.6%, change +1.7pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
FCF $0.0B, FCF/NI = -0.77
Accruals ratio = -12.3%. Low accruals
Cash $0.6B covers 80% of debt $0.7B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 1% of equity. Manageable
Interest coverage = -3.8x (<2x). Financial stress
Other assets 5.7% vs revenue 26.2%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
M-Score = -3.03 (< -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