PTC Therapeutics, Inc. — Earnings Quality Grade F
PTCT · 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 38 days, change -33 days YoY
AR growth 14.5% vs revenue growth 114.5%
Revenue 114.5%, CFFO 760.4%. Cash follows revenue
Expense Quality
Inventory growth 243.4% far exceeds COGS -18.1%, margin rising. Fraud signal
CapEx growth 304.1% is >2x revenue growth 114.5%
SG&A/Gross Profit = 20.6%, excellent (<30%)
Gross margin 97.3%, change +4.4pp. Stable
Cash Flow Quality
CFFO/NI = 1.04. Profits backed by cash
FCF $0.4B, FCF/NI = 0.60
Accruals ratio = -1.0%. Low accruals
Cash $1.9B covers 72% of debt $2.7B
Balance Sheet Health
Goodwill+Intangibles $0.5B = -229% of equity. Manageable
Debt/EBITDA = 3.0x. Healthy
Other assets -11.6% vs revenue 114.5%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles surged 134% YoY
Manipulation Score
M-Score = -1.56 (> -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