Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Sep 1, 2026
Cumberland Pharmaceuticals Inc (CPIX)
A forensic read on Cumberland Pharmaceuticals Inc 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
Distress
Financial health
-0.9
Distress distance
Clean
Earnings quality
6
Forensic signals
-11.4%
ROE
17.6%
Revenue growth
The financial-health reading above compares this company's equity at BOOK value, not at what the market currently pays for it — this free snapshot doesn't pull live market data. Treat it as a rough read, not the final word.
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.
Cumberland Pharmaceuticals Inc earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads -0.9, placing it in the Distress zone (based on book value, not market value, since this free snapshot doesn't pull live market data — treat this zone as a rough read, not the final word). 6 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+30.0%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +30.0% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. The build is led by inventory up +56% against +1% in cost of sales and receivables up +45% against revenue +18%. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 68% of net operating assets, against an accruals ratio of 30.0%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
117d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 103 to 117 days FY2024→FY2025 (receivables +45% vs revenue +18%). Receivables are outrunning sales — a flag for aggressive revenue recognition or slipping collections. Across FY2021–FY2025 the day count ran 98 → 87 → 106 → 103 → 117 days — the latest step continues a climb that was already under way, which is the persistence that separates a collection problem from a busy quarter. Deferred revenue was roughly flat (-88%) over the same period, which doesn't corroborate a benign upfront-billing explanation for the receivables build. Measured against the same quarter twelve months earlier — like-for-like on the calendar, so an ordinary seasonal build cannot produce it — receivables took longer to collect in 3 consecutive quarters (Dec 2025 +11, Mar 2026 +60, Jun 2026 +7250 days). In the latest of them the receivable balance grew +30% against sales -98%, so more of a quarter's billings were still outstanding at the period end than a year earlier — money the company has recognized and not yet been paid.
280d
FY2024→FY2025
Key fundamentals
Latest Revenue$44.5M
Revenue Growth YoY+17.6%
Revenue CAGR (3yr)+2.0%
Net Margin-6.4%
Free Cash Flow$4.8M
Return on Equity-11.4%
Debt / Equity0.00x
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 Cumberland Pharmaceuticals Inc's actual 10-K/10-Q/8-K filings?
Inventory days.Days inventory outstanding moved from 239 to 280 FY2024→FY2025 (against cost of goods sold; inventory +56% vs +1% in cost of sales). Inventory is outrunning what's being sold — a flag for softening demand or obsolescence risk ahead.
-7.7%
FY2025
Return on invested capital.Return on invested capital is -7.7% in the latest fiscal year and rising from -10% — well below its ~10% cost of capital, and it has been across FY2013–FY2025, so reinvested dollars have not been earning their keep.
+0.7%/yr
FY2022–FY2025
Share count.Diluted share count changed +2% over the last 3 years to FY2025 (+0.7%/yr). Roughly flat — buybacks ($263,478) are about offsetting stock comp ($408,320), not shrinking the count. Per-share value isn't being meaningfully helped or hurt by the count.
$400,000
FY2024–FY2024
Goodwill impairments.Took $400,000 of goodwill writedowns across 1 year (FY2024 ($400,000)). Writedowns mean past acquisitions underperformed what was paid for them.