D

Agilent Technologies, Inc. — Earnings Quality Grade D

A · Healthcare

Significant concerns

i
Sector context: Sector context: balance sheet flags reflect legacy goodwill from major acquisitions, not current period activity. Underlying business cash flow remains healthy. Engine grade D → adjusted to C
Revenue
$6.9B
2025
Net Income
$1.3B
2025
Gross Margin
52.4%
Free Cash Flow
$1.2B
01

Screening Summary

14
Passed
1
Watch
2
Failed
-2.46
M-Score
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 78 days, change +4 days YoY

A2AR vs Revenue Growth

AR outpaced revenue for 2 consecutive years

A3Revenue vs CFFO

Revenue 6.7%, CFFO -11.0%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory 5.5% vs COGS 11.1%. Normal

B2CapEx vs Revenue

CapEx growth 7.7% vs revenue 6.7%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 46.9%. Normal

B4Gross Margin

Gross margin 52.4%, change -1.9pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.20. Profits backed by cash

C2Free Cash Flow

FCF $1.2B, FCF/NI = 0.88

C3Accruals Ratio

Accruals ratio = -2.0%. Low accruals

!
C4Cash vs Debt

Cash $1.8B covers 53% of debt $3.4B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $4.9B = 73% of equity. Over 50%

D2Leverage

Debt/EBITDA = 1.8x. Healthy

D3Soft Asset Growth

Other assets 16.4% vs revenue 6.7%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change -2% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.46 (< -2.22). Unlikely manipulator

04

Beneish M-Score

Manipulation Probability-2.46
-4.0 Clean-2.22 Grey-1.78 Danger0
1.052
DSRI
AR growing faster than revenue?
1.036
GMI
Gross margin declining?
0.931
AQI
Asset quality deteriorating?
1.067
SGI
Revenue growth rate
1.013
DEPI
Depreciation slowing?
1.021
SGAI
SG&A ratio changing?
-0.0201
TATA
Accruals level
0.959
LVGI
Leverage increasing?
05

Altman Z-Score

3.51
Safe Zone
0 Distress1.102.605.0+ Safe
0.1766
Liquidity
0.1091
Cumulative profit
0.1216
Operating efficiency
1.1261
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09

Agilent Technologies, Inc. (A) Earnings Quality Grade D — EarningsGrade