Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Jun 27, 2026
Denali Therapeutics Inc. (DNLI)
A forensic read on Denali Therapeutics 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
Safe
Financial health
3.6
Altman Z-score
Clean
Earnings quality
3
Forensic signals
-50.1%
ROE
$4.1B
Market cap
Denali Therapeutics Inc. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is 3.6, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by receivables vs revenue.
What the filings flag
114d DSOReceivables vs revenue.Days sales outstanding moved from 9 to 114 days FY2020→FY2021 (receivables +77% vs revenue -86%). Receivables are outrunning sales — a flag for aggressive revenue recognition or slipping collections.
-52%Return on invested capital.Return on invested capital is -52% and slipping from -31% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+12.5%/yrShare-count dilution.Diluted share count changed +38% over the last 3 years to FY2025 (+12.5%/yr). The count is GROWING — existing holders are being diluted. That's ~12.5% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~38%.
Key fundamentals
Free Cash Flow$-422.1M
Return on Equity-50.6%
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 Denali Therapeutics Inc.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about DNLI'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