F

Arcosa, Inc. — Earnings Quality Grade F

ACA · Industrials

Major red flags

Revenue
$2.9B
2025
Net Income
$208M
2025
Gross Margin
22.4%
Free Cash Flow
$176M
01

Screening Summary

12
Passed
2
Watch
3
Failed
-2.46
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 53 days, change +3 days YoY

!
A2AR vs Revenue Growth

AR growth 19.3% exceeds revenue growth 12.2%

A3Revenue vs CFFO

Revenue grew 12.2% but CFFO declined -32.1%

02

Expense Quality

B1Inventory vs COGS

Inventory 17.9% vs COGS 8.8%. Normal

B2CapEx vs Revenue

CapEx growth -12.7% vs revenue 12.2%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 47.5%. Normal

B4Gross Margin

Gross margin 22.4%, change +2.4pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.64. Profits backed by cash

C2Free Cash Flow

FCF $0.2B, FCF/NI = 0.84

C3Accruals Ratio

Accruals ratio = -2.7%. Low accruals

C4Cash vs Debt

Cash $0.2B covers only 14% of debt $1.5B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $1.7B = 63% of equity. Over 50%

D2Leverage

Debt/EBITDA = 2.7x. Healthy

D3Soft Asset Growth

Other assets -12.2% vs revenue 12.2%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

!
E1Serial Acquirer FCF

FCF after acquisitions negative for 2/3 years

E2Goodwill Surge

Goodwill+Intangibles change -2% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

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

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04

Beneish M-Score

Manipulation Probability-2.46
-4.0 Clean-2.22 Grey-1.78 Danger0
1.063
DSRI
AR growing faster than revenue?
0.893
GMI
Gross margin declining?
0.958
AQI
Asset quality deteriorating?
1.122
SGI
Revenue growth rate
1
DEPI
Depreciation slowing?
0.855
SGAI
SG&A ratio changing?
-0.0266
TATA
Accruals level
0.907
LVGI
Leverage increasing?
05

Altman Z-Score

3.07
Safe Zone
0 Distress1.102.605.0+ Safe
0.1209
Liquidity
0.19
Cumulative profit
0.0702
Operating efficiency
1.127
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25