ADTRAN Holdings, Inc. — Earnings Quality Grade F
ADTN · Technology
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 71 days, change +1 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 17.5%, CFFO 25.3%. Cash follows revenue
Expense Quality
Inventory -17.5% vs COGS 11.7%. Normal
CapEx growth 6.3% vs revenue 17.5%. Normal
SG&A/Gross Profit = 54.5%. Normal
Gross margin rose +3.2pp while AR increased and AP decreased. Fraud pattern
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF $0.1B, FCF/NI = -1.33
Accruals ratio = -14.6%. Low accruals
Cash $0.1B covers 53% of debt $0.2B
Balance Sheet Health
Goodwill+Intangibles $0.4B = 243% of equity. Over 50%
Interest coverage = -0.8x (<2x). Financial stress
Other assets -6.1% vs revenue 17.5%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 5% YoY. Normal
Manipulation Score
M-Score = -3.09 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25