MercadoLibre, Inc. — Earnings Quality Grade F
MELI · Consumer Cyclical
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 5 days, change +0 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 39.1%, CFFO 53.0%. Cash follows revenue
Expense Quality
Inventory growth 92.6% exceeds COGS 43.2%
CapEx growth 56.2% vs revenue 39.1%. Normal
SG&A/Gross Profit = 33.4%. Normal
Gross margin 44.5%, change -1.6pp. Stable
Cash Flow Quality
CFFO/NI = 6.07. Profits backed by cash
FCF $10.8B, FCF/NI = 5.39
Accruals ratio = -23.7%. Low accruals
Cash $5.5B covers only 48% of debt $11.4B
Balance Sheet Health
Goodwill+Intangibles $0.2B = 3% of equity. Manageable
Debt/EBITDA = 3.0x. Healthy
Other assets grew 158.2% vs revenue 39.1%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -7% YoY. Normal
Manipulation Score
M-Score = -3.13 (< -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 · 2026-04-08