Two Harbors Investment Corp — Earnings Quality Grade F
TWO · Real Estate
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 69 days (24 → 93)
Small-cap context: DSO swings on a small revenue base are more often quarterly customer-mix effects than red flags.
AR growth -12.3% vs revenue growth -77.5%
Revenue -77.5%, CFFO -55.8%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth -8.9% vs revenue -77.5%. Normal
Insufficient data
Insufficient data
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.0B)
Accruals ratio = -5.0%. Low accruals
Cash $0.8B covers 65% of debt $1.3B
Balance Sheet Health
Goodwill+Intangibles $2.4B = 135% of equity. Over 50%
Insufficient data
Insufficient data
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -19% YoY. Normal
Manipulation Score
Insufficient data
Portfolio monitoring
Monitor TWO continuously
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Altman Z-Score — Not Applicable
Two Harbors Investment Corp is a financial company. Z-Score is designed for non-financial companies.
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25