Strategy Inc — Earnings Quality Grade F
MSTR · Technology
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO increased by 15 days
AR outpaced revenue for 2 consecutive years
Revenue 3.0%, CFFO -26.8%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 1.9% vs revenue 3.0%. Normal
SG&A/Gross Profit = 83.8%, exceeds 70%
Gross margin 68.7%, change -3.4pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
FCF is negative ($-22.6B)
Accruals ratio = -6.1%. Low accruals
Cash $2.3B covers only 28% of debt $8.2B
Balance Sheet Health
Goodwill+Intangibles $58.9B = 115% of equity. Over 50%
Interest coverage = -0.6x (<2x). Financial stress
Other assets grew 88.1% vs revenue 3.0%
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Goodwill+Intangibles surged 146% YoY
Manipulation Score
M-Score = -2.49 (< -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