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Forensic Analysis · Communications Equipment & Electronic Components · as of Nov 11, 2026

Varex Imaging Corp (VREX)

A forensic read on Varex Imaging 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
3.3
Distress distance
Clean
Earnings quality
3
Forensic signals
-14.0%
ROE
4.1%
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.

Varex Imaging Corp earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 3.3, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.

What the filings flag

-2.6%
FY2025
Return on invested capital. Return on invested capital is -2.6% in the latest fiscal year and slipping across FY2023–FY2025 from 7.4%. After-tax operating profit was $69M in FY2023 and ($22M) in FY2025, with operating income at 8.6% of revenue in FY2023, 4.0% in FY2024 and -3.3% in FY2025. The capital base behind it came down -11% across FY2023–FY2025, from $936M to $836M, so this return is struck on a smaller base than it started on. FY2025's operating profit carried a $94M goodwill write-off that alone took about 8.9 points off that year's return, so about 8.9 of the 10.0-point fall across FY2023–FY2025 is that charge landing in the latest year rather than the capital earning less. A non-cash write-down lowers the reported return in the year it lands.
186d
FY2024→FY2025
Inventory days. Days inventory outstanding moved from 179 to 186 FY2024→FY2025 (against cost of goods sold; inventory +13% vs 0% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.
$94M
FY2025
Goodwill impairments. Took $94M of goodwill writedowns across 1 year (FY2025 ($94M)). Writedowns mean past acquisitions underperformed what was paid for them.

Key fundamentals

Latest Revenue$844.6M
Revenue Growth YoY+4.1%
Revenue CAGR (2yr)-2.8%
Net Margin-8.3%
Free Cash Flow$18.8M
Return on Equity-14.0%
Debt / Equity0.78x

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Data from SEC EDGAR public filings · metrics as of Nov 11, 2026. Forensic signals flag probability, not certainty.

See a wrong number? Report an error with the filing it should match.