Forensic Analysis · Retail / Consumer Discretionary · as of Jul 25, 2026
Digital Brands Group, Inc. (DBGI)
A forensic read on Digital Brands Group, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
F · Poor — capital at risk
Forensic grade
Distress
Financial health
-7.9
Altman Z-score
Clean
Earnings quality
4
Forensic signals
-322.2%
ROE
$297M
Market cap
-36.1%
Revenue growth
Digital Brands Group, Inc. earns a F (Poor — capital at risk) forensic quality grade, and its Altman Z-score is -7.9, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+116.2%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +116.2% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check is more mixed: reported earnings ran behind operating cash by 103% of net operating assets, diverging from the balance-sheet accrual read.
201d
FY2024→FY2025
Inventory days.Days inventory outstanding moved from 176 to 201 FY2024→FY2025 (against cost of goods sold; inventory -18% vs -20% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.
n/m (stock split)
FY2022–FY2025
Share count (stock split).Diluted share count changed -55% over the last 3 years to FY2025, but that includes a large one-time change around FY2024 consistent with a stock split or reverse split, not gradual buybacks or issuance — a split changes the count with NO effect on any holder's proportional ownership, so the raw -23.2%/yr figure isn't a real buyback/dilution read here.
$15M
FY2022–FY2025
Goodwill impairments.Took $15M of goodwill writedowns across 2 years (FY2022 ($12M), FY2025 ($3M)). Writedowns mean past acquisitions underperformed what was paid for them — worth weighing on capital-allocation skill.
Key fundamentals
Latest Revenue$7.4M
Revenue Growth YoY-36.1%
Net Margin-382.8%
Free Cash Flow$-15.9M
Return on Equity-322.2%
Debt / Equity1.40x
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Digital Brands Group, Inc.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about DBGI's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown