Alliance Entertainment Holding Corp (AENT) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Trading Companies & Distributors · as of Aug 12, 2026
Alliance Entertainment Holding Corp (AENT)
A forensic read on Alliance Entertainment Holding Corp built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Safe
Financial health
3.0
Distress distance
Watch
Earnings quality
5
Forensic signals
13.0
P / E (ttm)
14.6%
ROE
$284M
Market cap
-67.9%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Alliance Entertainment Holding Corp earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 3.0, placing it in the Safe zone. 5 forensic signals were flagged in its latest SEC filings, led by inventory days.
What the filings flag
44565d
FY2023→FY2024
Inventory days.Days inventory outstanding moved from 8712 to 44565 FY2023→FY2024 (against cost of goods sold; inventory -34% vs -88% in cost of sales). Inventory is outrunning what's being sold — a flag for softening demand or obsolescence risk ahead.
+2.4%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +7% over the last 3 years to FY2025 (+2.4%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~2.4% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~7%.
12824d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 4286 to 12824 days FY2024→FY2025 (receivables +5% vs revenue -68%). Receivables are creeping up relative to sales. Across FY2023–FY2025 the day count ran 2212 → 4286 → 12824 days, so the latest reading sits on top of a record that was flat or falling before it — one year's move, not a direction the business has been travelling in.
12.9%
FY2025
Return on invested capital.Return on invested capital is 12.9% in the latest fiscal year and rising from -1% — a modest positive spread over its ~8% cost of capital — growth adds value, though not dramatically.
2% of rev
FY2025
Key fundamentals
Latest Revenue$2.7M
Revenue Growth YoY-67.9%
Revenue CAGR (3yr)-87.6%
Net Margin558.4%
Free Cash Flow$26.8M
Return on Equity14.6%
Debt / Equity0.71x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Alliance Entertainment Holding Corp's actual 10-K/10-Q/8-K filings?
Data from SEC EDGAR public filings · metrics as of Aug 12, 2026. Forensic signals flag probability, not certainty.
Stock-based comp load.
Stock-based compensation ran 2% of revenue and 0% of free cash flow in FY2025 — about $0.00 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count, and there it has run at about 2.4% a year and is falling.