Madrigal Pharmaceuticals, Inc. — Earnings Quality Grade F
MDGL · Healthcare
Major red flags
Screening Summary
Management Signals
Source: SEC EDGAR 8-K Item 5.02, with exhibit links when available
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 51 days, change -58 days YoY
AR growth 149.9% vs revenue growth 432.1%
Revenue grew 432.1% but CFFO only 58.4%
Expense Quality
Inventory 119.7% vs COGS 800.8%. Normal
CapEx growth -46.3% vs revenue 432.1%. Normal
SG&A/Gross Profit = 90.2%, exceeds 70%
Gross margin 94.1%, change -2.4pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
FCF is negative ($-0.2B)
Accruals ratio = -7.8%. Low accruals
Cash $1.0B covers debt $0.3B
Balance Sheet Health
No goodwill. Clean balance sheet
Interest coverage = -13.5x (<2x). Financial stress
Insufficient data
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
No goodwill
Manipulation Score
M-Score = 0.48 (> -1.78). LIKELY MANIPULATOR
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25