Forensic Analysis · Pharmaceuticals & Biotechnology · as of Nov 9, 2026
Rockwell Medical, Inc. (RMTI)
A forensic read on Rockwell Medical, 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
-18.3
Distress distance
Clean
Earnings quality
5
Forensic signals
-15.3%
ROE
-31.8%
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 (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.
Rockwell Medical, Inc. earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads -18.3, 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
+32.1%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +32.1% 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 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 payables paid down 30% against -31% in cost of sales. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 15% of net operating assets, against an accruals ratio of 32.1%. 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. Read them as two results, not one.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
-11.2%
FY2025
Return on invested capital.Return on invested capital is -11.2% in the latest fiscal year, against -19.8% in FY2023, having run between -19.8% and 1.7% across FY2023–FY2025 with no direction held. After-tax operating profit was ($5M) in FY2023 and ($4M) in FY2025, with operating income at -8.0% of revenue in FY2023, 0.6% in FY2024 and -6.8% in FY2025. The capital base behind it cannot be compared across FY2023–FY2025: short-term debt is tagged in one of those two fiscal years and not the other, and an untagged line enters this calculation as zero, so any change in the base would be a change in what the filer tagged. $10M of the $33M base at FY2025 is short-term investments (30.5%) — securities held beside cash, which the base keeps because only cash is subtracted from it; they earn the balance sheet's yield, which is not in the operating profit above, so the loss on the operating capital is larger than this rate shows. FY2025's operating profit carried a $1M restructuring charge that alone took about 2.4 points off that year's return, so the latest return is depressed by that charge.
+24.2%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +54% over the last 2 years to FY2025 (+24.2%/yr). The count is growing — 23.3M shares in FY2023, 36.0M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~24.2% 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 FY2023 has been diluted ~35%.
43d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 30 to 43 days FY2024→FY2025 (receivables -2% vs revenue -32%). Receivables are creeping up relative to sales. Across FY2023–FY2025 the day count ran 48 → 30 → 43 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.DSO (days sales outstanding): the average days the company waits to collect cash after a sale.
3% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 3% of revenue in FY2025 — about $0.05 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 24.2% a year across FY2023–FY2025, and the rate is falling. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$69.3M
Revenue Growth YoY-31.8%
Revenue CAGR (2yr)-9.0%
Net Margin-7.7%
Free Cash Flow-$1.2M
Return on Equity-15.3%
Debt / Equity0.24x
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 Rockwell Medical, Inc.'s actual 10-K/10-Q/8-K filings?