F

LSB Industries, Inc. — Earnings Quality Grade F

LXU · Basic Materials

Major red flags

Revenue
$615M
2025
Net Income
$25M
2025
Gross Margin
17.0%
Free Cash Flow
$18M
01

Screening Summary

12
Passed
1
Watch
3
Failed
-2.57
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 34 days, change +7 days YoY

A2AR vs Revenue Growth

AR outpaced revenue for 2 consecutive years

A3Revenue vs CFFO

Revenue 17.8%, CFFO 10.3%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory -3.3% vs COGS 7.6%. Normal

B2CapEx vs Revenue

CapEx growth -16.1% vs revenue 17.8%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 39.8%. Normal

B4Gross Margin

Gross margin rose +7.8pp while AR increased and AP decreased. Fraud pattern

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 3.88. Profits backed by cash

C2Free Cash Flow

FCF $0.0B, FCF/NI = 0.73

C3Accruals Ratio

Accruals ratio = -6.0%. Low accruals

C4Cash vs Debt

Cash $0.1B covers only 30% of debt $0.5B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.0B = 0% of equity. Manageable

!
D2Leverage

Interest coverage = 1.9x (<2x). Financial stress

D3Soft Asset Growth

Insufficient data

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change -2% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.57 (< -2.22). Unlikely manipulator

Portfolio monitoring

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04

Beneish M-Score

Manipulation Probability-2.57
-4.0 Clean-2.22 Grey-1.78 Danger0
1.253
DSRI
AR growing faster than revenue?
0.54
GMI
Gross margin declining?
0.988
AQI
Asset quality deteriorating?
1.178
SGI
Revenue growth rate
0.919
DEPI
Depreciation slowing?
0.844
SGAI
SG&A ratio changing?
-0.0604
TATA
Accruals level
0.903
LVGI
Leverage increasing?
05

Altman Z-Score

2.89
Safe Zone
0 Distress1.102.605.0+ Safe
0.16
Liquidity
0.1979
Cumulative profit
0.0539
Operating efficiency
0.7956
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25