Tarsus Pharmaceuticals, Inc. — Earnings Quality Grade F
TARS · Healthcare
Major red flags
Screening Summary
Management Signals
Source: SEC EDGAR 8-K Item 5.02, with exhibit links when available
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 69 days, change -25 days YoY
AR growth 81.9% vs revenue growth 146.7%
Revenue 146.7%, CFFO 85.0%. Cash follows revenue
Expense Quality
Inventory 66.9% vs COGS 139.2%. Normal
CapEx growth 50.1% vs revenue 146.7%. Normal
SG&A/Gross Profit = 101.6%, exceeds 70%
Gross margin 93.2%, change +0.2pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
FCF is negative ($-0.0B)
Accruals ratio = -9.6%. Low accruals
Cash $0.4B covers debt $0.1B
Balance Sheet Health
No goodwill. Clean balance sheet
Interest coverage = -8.5x (<2x). Financial stress
Other assets 4.9% vs revenue 146.7%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
No goodwill
Manipulation Score
M-Score = -1.59 (> -1.78). LIKELY MANIPULATOR
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25