DaVita Inc. — Earnings Quality Grade F
DVA · Healthcare
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 65 days, change +3 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 6.5%, CFFO -6.7%. Cash follows revenue
Expense Quality
Inventory 19.4% vs COGS 7.5%. Normal
CapEx growth 3.7% vs revenue 6.5%. Normal
SG&A/Gross Profit = 38.0%. Normal
Gross margin 32.2%, change -0.7pp. Stable
Cash Flow Quality
CFFO/NI = 2.53. Profits backed by cash
FCF $1.3B, FCF/NI = 1.75
Accruals ratio = -6.5%. Low accruals
Cash $0.7B covers only 5% of debt $12.9B
Balance Sheet Health
Goodwill+Intangibles $7.8B = -1193% of equity. Manageable
Debt/EBITDA = 4.9x (>4x). Financial stress
Other assets -5.8% vs revenue 6.5%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 3% YoY. Normal
Manipulation Score
M-Score = -2.70 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09