TKO Group Holdings, Inc. — Earnings Quality Grade F
TKO · Communication Services
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO increased by 11 days
AR outpaced revenue for 2 consecutive years
Revenue -3.1%, CFFO 119.4%. Cash follows revenue
Expense Quality
Inventory growth 13.5% far exceeds COGS -27.5%, margin rising. Fraud signal
CapEx growth 6.8% vs revenue -3.1%. Normal
SG&A/Gross Profit = 53.4%. Normal
Gross margin rose +13.5pp while AR increased and AP decreased. Fraud pattern
Cash Flow Quality
CFFO/NI = 6.58. Profits backed by cash
FCF $1.2B, FCF/NI = 5.93
Accruals ratio = -7.0%. Low accruals
Cash $0.8B covers only 20% of debt $4.1B
Balance Sheet Health
Goodwill+Intangibles $11.8B = 315% of equity. Over 50%
Debt/EBITDA = 3.1x. Healthy
Other assets -24.9% vs revenue -3.1%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -3% YoY. Normal
Manipulation Score
M-Score = -2.73 (< -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 · 2026-04-10