Reservoir Media, Inc.. — Earnings Quality Grade F
RSVR · Communication Services
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 87 days, change +3 days YoY
AR growth 13.9% vs revenue growth 9.6%
Revenue 9.6%, CFFO 25.1%. Cash follows revenue
Expense Quality
Inventory -22.8% vs COGS 3.5%. Normal
CapEx growth 91.8% is >2x revenue growth 9.6%
SG&A/Gross Profit = 39.4%. Normal
Gross margin 63.8%, change +2.1pp. Stable
Cash Flow Quality
CFFO/NI = 5.84. Profits backed by cash
FCF < 50% of Net Income for 3 years
Accruals ratio = -4.3%. Low accruals
Cash $0.0B covers only 5% of debt $0.4B
Balance Sheet Health
Goodwill+Intangibles $0.7B = 197% of equity. Over 50%
Debt/EBITDA = 6.8x (>4x). Interest coverage = 1.6x (<2x). Financial stress
Other assets grew 33.6% vs revenue 9.6%
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles change 12% YoY. Normal
Manipulation Score
M-Score = -2.59 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25