F

RLJ Lodging Trust — Earnings Quality Grade F

RLJ · Real Estate

Major red flags

Revenue
$1.3B
2025
Net Income
$29M
2025
Gross Margin
26.7%
Free Cash Flow
$244M
01

Screening Summary

12
Passed
1
Watch
2
Failed
-2.5
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 8 days, change +1 days YoY

!
A2AR vs Revenue Growth

AR growth 16.3% exceeds revenue growth -1.4%

A3Revenue vs CFFO

Revenue -1.4%, CFFO -14.6%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

B2CapEx vs Revenue

Insufficient data

B3SG&A Ratio

SG&A/Gross Profit = 13.2%, excellent (<30%)

B4Gross Margin

Gross margin 26.7%, change -1.3pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 8.55. Profits backed by cash

C2Free Cash Flow

FCF $0.2B, FCF/NI = 8.55

C3Accruals Ratio

Accruals ratio = -4.5%. Low accruals

C4Cash vs Debt

Cash $0.4B covers only 18% of debt $2.3B

04

Balance Sheet Health

D1Goodwill + Intangibles

No goodwill. Clean balance sheet

D2Leverage

Debt/EBITDA = 7.1x (>4x). Interest coverage = 1.2x (<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

No goodwill

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.50 (< -2.22). Unlikely manipulator

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04

Beneish M-Score

Manipulation Probability-2.5
-4.0 Clean-2.22 Grey-1.78 Danger0
1.18
DSRI
AR growing faster than revenue?
1.05
GMI
Gross margin declining?
0.996
AQI
Asset quality deteriorating?
0.986
SGI
Revenue growth rate
0.974
DEPI
Depreciation slowing?
0.882
SGAI
SG&A ratio changing?
-0.0454
TATA
Accruals level
1.019
LVGI
Leverage increasing?

Altman Z-Score — Not Applicable

RLJ Lodging Trust is a financial company. Z-Score is designed for non-financial companies.

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