Facts from the latest 10-K that are worth reading about. They are not a verdict on the company.
✓
Cash from operations lower than net income
Cash from operations $1.6B vs net income $1.1B (FY ending 2025-12-31)
✓
Auditor change
Same auditor in both 10-Ks: Ernst and Young LLP
Source: 10-K 0001193125-26-051433: auditor Ernst and Young LLP; 10-K 0000950170-25-019894: auditor Ernst and Young LLP; no 8-K item 4.01 in the last 2 years
✓
Going concern language
No statement of substantial doubt about going concern
✓
Restatement (8-K item 4.02)
No 8-K item 4.02 in the last 2 years
Source: Filing index, 8-Ks since 2024-11-10
✓
Late filing notice (NT 10-K or NT 10-Q)
No NT 10-K or NT 10-Q in the last 2 years
Source: Filing index since 2024-11-10
✓
Critical audit matters changed
The same matters as last year: Impairment of Long-Lived Assets; F-1; Matter in; Our Audit
✓
Material weakness in internal control
No sentence in the 10-K concludes that controls were not effective because of a material weakness
✓
Material impairment (8-K item 2.06)
No 8-K item 2.06 in the last 2 years
Source: Filing index, 8-Ks since 2024-11-10
✓
Bankruptcy (8-K item 1.03)
No 8-K item 1.03 in the last 2 years
Source: Filing index, 8-Ks since 2024-11-10
–
Receivables growing faster than revenue not applicable
The 10-K does not report receivables for both years.
–
Inventory growing faster than revenue not applicable
The 10-K does not report inventory for both years.
Ratios over five years
Each ratio is worked out from the 10-K's own numbers; hover a value for its source. The small grey figure under each value (“peers”) is the median of 9 companies in the same peer group, for the same fiscal year. The line at the right shows the company (solid) against the peer median (dashed) on one scale. A ratio that moves is a reason to read the filing, not a verdict.
| Ratio | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | Trend |
|---|---|---|---|---|---|---|
| Cash from operations / net income Cash from operations / net income (only when net income is above zero) Near or above 1.0x means profit arrives as cash. Well below it for years means profit is sitting in receivables, stock or estimates. | 0.95x peers 1.82x | 1.87x peers 2.39x | 1.83x peers 2.06x | 1.52x peers 2.08x | 1.47x peers 1.92x | |
| Accruals ratio (Net income - cash from operations) / average total assets The part of profit that is not cash, as a share of the balance sheet. Higher means more of the profit rests on accounting estimates. | 0.4% peers −3.2% | −3.3% peers −3.7% | −3.5% peers −4.2% | −2.6% peers −3.2% | −2.5% peers −4.0% | |
| SG&A / revenue Selling, general and administrative expense / revenue Overhead per dollar of sales. A sudden fall can come from cutting costs, or from moving costs elsewhere. | 1.6% peers 5.2% | 1.9% peers 4.9% | 1.9% peers 4.5% | - peers 5.4% | - peers 5.0% |
How each check works
what it measures, the threshold, what it does not mean
| Check | What it measures | When it is marked | What it does not mean |
|---|---|---|---|
| Receivables growing faster than revenue | Whether customers owe more, relative to sales, than a year ago. | Receivables grew more than 10 percentage points faster than revenue, and grew. | Not proof that revenue is overstated. A large deal at year end, longer payment terms or an acquisition can do the same. |
| Cash from operations lower than net income | Whether reported profit is backed by cash from the business. | Cash from operations is below net income. Not computed for banks and other financial companies. | Common in fast-growing or seasonal companies. It is a question to ask, not a failure. |
| Inventory growing faster than revenue | Whether stock is piling up relative to sales. | Inventory grew more than 10 percentage points faster than revenue, and grew. | May be a planned build ahead of a product launch or a supply-chain change. |
| Auditor change | Whether the company changed its auditor. | An 8-K item 4.01 in the last 2 years, or a different auditor name in the two latest 10-Ks. | Often routine: rotation, a tender, or an audit firm merger. |
| Going concern language | Whether the 10-K states substantial doubt about continuing as a going concern. | A sentence to that effect is found in the 10-K text. Quoted as filed. | The wording is the company's, not our estimate. It can also appear in a sentence saying the doubt was removed. |
| Restatement (8-K item 4.02) | Whether the company said earlier financial statements should no longer be relied on. | An 8-K item 4.02 in the last 2 years. | Some restatements are small and do not change the picture. |
| Late filing notice | Whether the company asked for more time to file a 10-K or 10-Q. | An NT 10-K or NT 10-Q in the last 2 years. | Delays can be technical and one-off. |
| Critical audit matters changed | Which topics the auditor singled out as most difficult, and whether they changed. | A matter is new in the latest 10-K compared with the one before. | A new matter shows where the auditor spent its effort, not that something is wrong. |
| Material weakness in internal control | Whether the 10-K concludes that internal control over financial reporting was not effective because of a material weakness. | A sentence in the 10-K text concludes that controls were not effective because of a material weakness, quoted as filed. Sentences that say there is none, that one could occur, or that an earlier one was fixed are not marked. | It is the company's or the auditor's own wording, not our estimate. Many are about one account or process and are fixed within a year. It does not say the numbers are wrong. |
| Material impairment (8-K item 2.06) | Whether the company told the SEC it expects a material charge for impaired assets, such as goodwill. | An 8-K item 2.06 in the last 2 years. | A non-cash write-down. It says an earlier value was too high, not that the business is failing or that cash ran out. |
| Bankruptcy (8-K item 1.03) | Whether the company filed for bankruptcy or receivership. | An 8-K item 1.03 in the last 2 years. | The filing is the company's own and is a fact. It does not say what shareholders will get or whether the business continues. |
The 10-point threshold is our choice, not an academic result. Every check cites the filing and the line items it used.
Work on VMRK in a spreadsheet:
Excel workbook (a sheet per section, ten years by column, charts, links to the filings) ·
CSV.
For a Google Sheet that stays up to date, paste =IMPORTDATA("https://tickdelta.com/company/VMRK/export.csv") into a cell.