F

Taylor Morrison Home Corporatio — Earnings Quality Grade F

TMHC · Consumer Cyclical

Major red flags

Revenue
$8.1B
2025
Net Income
$783M
2025
Gross Margin
23.0%
Free Cash Flow
$777M
01

Screening Summary

12
Passed
0
Watch
1
Failed
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

Insufficient data

A2AR vs Revenue Growth

Insufficient data

A3Revenue vs CFFO

Revenue -0.6%, CFFO 289.1%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory -1.5% vs COGS 1.1%. Normal

B2CapEx vs Revenue

CapEx growth 11.1% vs revenue -0.6%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 39.3%. Normal

B4Gross Margin

Gross margin 23.0%, change -1.3pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.04. Profits backed by cash

C2Free Cash Flow

FCF $0.8B, FCF/NI = 0.99

C3Accruals Ratio

Accruals ratio = -0.4%. Low accruals

C4Cash vs Debt

Cash $0.9B covers only 36% of debt $2.4B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.7B = 11% of equity. Manageable

D2Leverage

Debt/EBITDA = 2.0x. Healthy

D3Soft Asset Growth

Insufficient data

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change 0% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

Insufficient data

Portfolio monitoring

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05

Altman Z-Score

9.18
Safe Zone
0 Distress1.102.605.0+ Safe
0.7338
Liquidity
0.5262
Cumulative profit
0.1154
Operating efficiency
1.7836
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25