ARS Pharmaceuticals, Inc. — Earnings Quality Grade F
SPRY · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 76 days (33 → 110)
Small-cap context: DSO swings on a small revenue base are more often quarterly customer-mix effects than red flags.
AR growth 210.1% exceeds revenue growth -5.5%
Revenue -5.5%, CFFO -1361.2%. Cash follows revenue
Expense Quality
Inventory 60.6% vs COGS 1990.4%. Normal
CapEx growth -39.8% vs revenue -5.5%. Normal
SG&A/Gross Profit = 360.4%, exceeds 70%
Gross margin swung -23.1pp (98.9% → 75.8%)
Cash Flow Quality
CFFO/NI = 1.00. Profits backed by cash
FCF is negative ($-0.2B)
Accruals ratio = -0.1%. Low accruals
Cash $0.2B covers debt $0.1B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 13% of equity. Manageable
Interest coverage = -69.0x (<2x). Financial stress
Other assets grew 206.8% vs revenue -5.5%
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles surged 96% YoY
Manipulation Score
M-Score = -1.75 (> -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