NVIDIA Corporation — Earnings Quality Grade F
NVDA · Technology
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 65 days, change +1 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 65.5%, CFFO 60.3%. Cash follows revenue
Expense Quality
Inventory growth 112.3% exceeds COGS 91.4%
CapEx growth 86.7% vs revenue 65.5%. Normal
SG&A/Gross Profit = 3.0%, excellent (<30%)
Gross margin 71.1%, change -3.9pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
FCF $96.7B, FCF/NI = 0.81
Accruals ratio = 8.4%. Elevated
Cash $62.6B covers debt $11.0B
Balance Sheet Health
Goodwill+Intangibles $24.1B = 15% of equity. Manageable
Debt/EBITDA = 0.1x. Healthy
Other assets grew 173.2% vs revenue 65.5%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 303% YoY
Manipulation Score
M-Score = -1.13 (> -1.78). LIKELY MANIPULATOR
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08