Strata Critical Medical, Inc. — Earnings Quality Grade F
SRTA · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 25 days (49 → 74)
Small-cap context: DSO swings on a small revenue base are more often quarterly customer-mix effects than red flags.
AR outpaced revenue for 2 consecutive years
Revenue grew 34.3% but CFFO declined -1841.8%
Small-cap context: Small-cap revenue/CFFO ratio is sensitive to growth-stage working-capital draws.
Expense Quality
No material inventory
CapEx growth -66.6% vs revenue 34.3%. Normal
SG&A/Gross Profit = 148.0%, exceeds 70%
Gross margin 20.9%, change +0.7pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.1B)
Accruals ratio = 27.7%. Exceeds 10%
Cash $0.1B covers debt $0.0B
Balance Sheet Health
Goodwill+Intangibles $0.1B = 49% of equity
Debt/EBITDA = -0.2x. Healthy
Other assets -41.6% vs revenue 34.3%. Normal
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 surged 477% YoY
Manipulation Score
M-Score = 0.06 (> -1.78). LIKELY MANIPULATOR
Small-cap context: Beneish M-Score was calibrated on large-caps; small-cap DSO/inventory volatility mechanically inflates it.
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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