Forensic Analysis · Retail / Consumer Discretionary · as of Sep 24, 2026
Envela Corp (ELA)
A forensic read on Envela Corp built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
17.3
Distress distance
Watch
Earnings quality
3
Forensic signals
14.5
P / E (ttm)
21.8%
ROE
$324M
Market cap
33.6%
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, valuation). 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.
Envela Corp earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 17.3, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by cash conversion.
What the filings flag
0.65×
FY2023–FY2025
Cash conversion.Over FY2023–FY2025, cumulative operating cash flow was 0.65× cumulative net income. Reported profit is not turning into cash. The shortfall is profit tied up in working capital rather than collected — the accrual and receivables lines below show where.
+15.1%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +15.1% 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 faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by receivables up +151% against revenue +34% and inventory up +36% against +38% in cost of sales. A cash-flow measure on the same base agrees: reported earnings ran ahead of operating cash by 17% of net operating assets, against an accruals ratio of 15.1%. 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.
17d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 9 to 17 days FY2024→FY2025 (receivables +151% vs revenue +34%). Receivables are creeping up relative to sales. Only 65¢ of operating cash arrived for every dollar of profit reported over FY2023–FY2025 ($18.6M against $28.5M), and the receivables balance is one of the places the rest is sitting. Across FY2023–FY2025 the day count ran 16 → 9 → 17 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. 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.
Key fundamentals
Latest Revenue$241.0M
Revenue Growth YoY+33.6%
Revenue CAGR (2yr)+17.3%
Net Margin6.1%
Free Cash Flow$1.3M
Return on Equity21.8%
Debt / Equity0.15x
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 Envela Corp's actual 10-K/10-Q/8-K filings?