Zimmer Biomet Holdings, Inc. — Earnings Quality Grade F
ZBH · Healthcare
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 76 days, change +5 days YoY
AR growth 15.1% exceeds revenue growth 7.2%
Revenue 7.2%, CFFO 13.2%. Cash follows revenue
Expense Quality
Inventory 2.3% vs COGS 13.8%. Normal
CapEx growth -22.4% vs revenue 7.2%. Normal
SG&A/Gross Profit = 56.8%. Normal
Gross margin 69.7%, change -1.8pp. Stable
Cash Flow Quality
CFFO/NI = 2.41. Profits backed by cash
FCF $1.4B, FCF/NI = 2.01
Accruals ratio = -4.3%. Low accruals
Cash $0.6B covers only 8% of debt $7.5B
Balance Sheet Health
Goodwill+Intangibles $14.7B = 115% of equity. Over 50%
Debt/EBITDA = 3.4x. Healthy
Other assets 0.4% vs revenue 7.2%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 8% YoY. Normal
Manipulation Score
M-Score = -2.59 (< -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