Sphere Entertainment Co. — Earnings Quality Grade C
SPHR · Communication Services
Some red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 51 days, change -30 days YoY
AR growth -24.8% vs revenue growth 18.8%
Revenue 18.8%, CFFO 1337.9%. Cash follows revenue
Expense Quality
Inventory 21.5% vs COGS 7.7%. Normal
CapEx growth -81.9% vs revenue 18.8%. Normal
SG&A/Gross Profit = 70.1%, exceeds 70%
Gross margin 51.6%, change +5.0pp. Stable
Cash Flow Quality
CFFO/NI = 7.28. Profits backed by cash
FCF $0.2B, FCF/NI = 5.72
Accruals ratio = -5.0%. Low accruals
Cash $0.5B covers 53% of debt $1.0B
Balance Sheet Health
Goodwill+Intangibles $0.4B = 16% of equity. Manageable
Interest coverage = -2.1x (<2x). Financial stress
Other assets grew 54.6% vs revenue 18.8%
Write-offs normal
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles change -27% YoY. Normal
Manipulation Score
M-Score = -2.90 (< -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