Diversified Energy Company — Earnings Quality Grade F
DEC · Energy
Major red flags
Screening Summary
管理层信号
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 93 days, change -15 days YoY
AR growth 74.2% vs revenue growth 102.7%
Revenue 102.7%, CFFO 110.6%. Cash follows revenue
Expense Quality
Inventory growth 189.9% far exceeds COGS 59.4%, margin rising. Fraud signal
Small-cap context: Inventory ratios on a small base are noisy; a single product launch can move them sharply.
CapEx growth 254.3% is >2x revenue growth 102.7%
SG&A/Gross Profit = 36.4%. Normal
Gross margin swung +19.4pp (9.1% → 28.6%)
Cash Flow Quality
CFFO/NI = 1.36. Profits backed by cash
FCF $0.3B, FCF/NI = 0.82
Accruals ratio = -2.0%. Low accruals
Cash $0.0B covers only 1% of debt $3.0B
Balance Sheet Health
No goodwill. Clean balance sheet
Interest coverage = 1.2x (<2x). Financial stress
Other assets 56.8% vs revenue 102.7%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -100% YoY. Normal
Manipulation Score
M-Score = -2.14 (grey zone)
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25