B

MEDIFAST INC — Earnings Quality Grade B

MED · Consumer Cyclical

Generally healthy

Revenue
$386M
2025
Net Income
-$19M
2025
Gross Margin
71.3%
Free Cash Flow
$1M
01

Screening Summary

11
Passed
3
Watch
0
Failed
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

Insufficient data

A2AR vs Revenue Growth

Insufficient data

A3Revenue vs CFFO

Revenue -36.0%, CFFO -72.0%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory -52.3% vs COGS -29.9%. Normal

B2CapEx vs Revenue

CapEx growth -24.7% vs revenue -36.0%. Normal

!
B3SG&A Ratio

SG&A/Gross Profit = 105.2%, exceeds 70%

B4Gross Margin

Gross margin 71.3%, change -2.5pp. Stable

03

Cash Flow Quality

!
C1CFFO vs Net Income

CFFO/NI = -0.37. Below 1.0

C2Free Cash Flow

FCF $0.0B, FCF/NI = -0.07

C3Accruals Ratio

Accruals ratio = -10.3%. Low accruals

C4Cash vs Debt

Cash $0.2B covers debt $0.0B

04

Balance Sheet Health

D1Goodwill + Intangibles

No goodwill. Clean balance sheet

!
D2Leverage

Debt/EBITDA = 368.8x (>4x). Financial stress

D3Soft Asset Growth

Other assets -19.0% vs revenue -36.0%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

No goodwill

06

Manipulation Score

F1Beneish M-Score

Insufficient data

Portfolio monitoring

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05

Altman Z-Score

10.15
Safe Zone
0 Distress1.102.605.0+ Safe
0.6401
Liquidity
0.6383
Cumulative profit
-0.0573
Operating efficiency
4.0552
Leverage

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