Solesence, Inc. — Earnings Quality Grade F
SLSN · Consumer Defensive
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 40 days, change +6 days YoY
AR outpaced revenue for 2 consecutive years
Revenue grew 18.6% but CFFO declined -534.7%
Small-cap context: Small-cap revenue/CFFO ratio is sensitive to growth-stage working-capital draws.
Expense Quality
Inventory -8.7% vs COGS 27.2%. Normal
CapEx growth -53.0% vs revenue 18.6%. Normal
SG&A/Gross Profit = 64.8%. Normal
Gross margin swung -5.0pp (30.9% → 25.9%)
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF < 50% of Net Income for 2 years
Accruals ratio = 20.7%. Exceeds 10%
Cash $0.0B covers only 5% of debt $0.0B
Balance Sheet Health
No goodwill. Clean balance sheet
Debt/EBITDA = 6.6x (>4x). Interest coverage = 1.7x (<2x). Financial stress
Other assets grew 1133.3% vs revenue 18.6%
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.
No goodwill
Manipulation Score
Insufficient data
Portfolio monitoring
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Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25