Forensic Analysis · Household & Personal Care Products · as of Nov 8, 2026
Zone Frontier Inc. (ZONE)
A forensic read on Zone Frontier 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
Grey Zone
Financial health
37.5
Distress distance
3
Forensic signals
-657.5%
ROE
64.3%
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.
Zone Frontier Inc. earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads 37.5, placing it in the Grey zone. 3 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of NOA).
What the filings flag
+191.5%
FY2025→FY2026
Accruals ratio (% of NOA).Net operating assets grew +191.5% relative to their own average in FY2026 — 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 49% against +95% in cost of sales. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 828% of net operating assets, against an accruals ratio of 191.5%. 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.
271% of rev
FY2026
Stock-based comp load.Stock-based compensation ran 271% of revenue in FY2026. It is a real cost, but it is not a cash cost — no cash left the business, which is why operating cash flow adds it back. Where a compensation charge lands instead is the share count, and this filer's count is not on file in enough years to say how the count moved.
$2M
FY2026
Goodwill impairments.Took $2M of goodwill writedowns across 1 year (FY2026 ($2M)). Writedowns mean past acquisitions underperformed what was paid for them.
Key fundamentals
Latest Revenue$3.4M
Revenue Growth YoY+64.3%
Revenue CAGR (2yr)+45.7%
Net Margin-5112.7%
Free Cash Flow-$18.2M
Return on Equity-657.5%
Debt / Equity0.02x
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 Zone Frontier Inc.'s actual 10-K/10-Q/8-K filings?