Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Oct 14, 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
5
Forensic signals
-11.4%
ROE
17.6%
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, going concern). 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. 5 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.
139d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 113 to 139 days FY2024→FY2025 (receivables +45% vs revenue +18%). Receivables are outrunning sales — a flag for aggressive revenue recognition or slipping collections. Across FY2023–FY2025 the day count ran 90 → 113 → 139 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. Both figures are measured on period-end balances rather than the beginning-plus-ending average, because averaging needs the balance a year before every reading — FY2024's opening balance is on file, but across the 3 fiscal years read here (FY2023–FY2025) the average yields only 2 day counts (1 step), too few to tell a climb from one year's move.
280d
FY2024→FY2025
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 across FY2023–FY2025 from -21.3%. After-tax operating profit was ($8M) in FY2023 and ($2M) in FY2025, with operating income at -24.2% of revenue in FY2023, -17.0% in FY2024 and -6.3% in FY2025. The capital base behind it came down -19% across FY2023–FY2025, from $35M to $29M, so this return is struck on a smaller base than it started on. Across FY2024–FY2025, $5M went into capital expenditure, purchases of intangible assets, acquisitions and equity-method investments against $264,852 of depreciation excluding $9M of intangible-asset amortisation. The base is struck net of amortisation, write-downs and the current liabilities that fund it, so it moved by less than that spending net of the wear, and this row does not say which of those absorbed the difference.
$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.
Key fundamentals
Latest Revenue$44.5M
Revenue Growth YoY+17.6%
Revenue CAGR (2yr)+6.1%
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?