Rigel Pharmaceuticals, Inc. — Earnings Quality Grade F
RIGL · 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 64 days, change -21 days YoY
AR growth 24.4% vs revenue growth 64.1%
Revenue 64.1%, CFFO 140.4%. Cash follows revenue
Expense Quality
Inventory growth 91.7% far exceeds COGS 5.2%, margin rising. Fraud signal
Small-cap context: Inventory ratios on a small base are noisy; a single product launch can move them sharply.
Insufficient data
SG&A/Gross Profit = 42.2%. Normal
Gross margin 93.3%, change +3.7pp. Stable
Cash Flow Quality
CFFO/NI = 0.21. Only 21% of profit backed by cash
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF $0.1B, FCF/NI = 0.21
Accruals ratio = 56.7%. Exceeds 10%
Cash $0.2B covers debt $0.1B
Balance Sheet Health
No goodwill. Clean balance sheet
Debt/EBITDA = 0.4x. Healthy
Other assets 25.0% vs revenue 64.1%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
No goodwill
Manipulation Score
M-Score = 1.64 (> -1.78). LIKELY MANIPULATOR
Small-cap context: Beneish M-Score was calibrated on large-caps; small-cap DSO/inventory volatility mechanically inflates it.
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25