American Electric Power Company — Earnings Quality Grade F
AEP · Utilities
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 19 days, change -1 days YoY
AR growth 6.0% vs revenue growth 10.9%
Revenue grew 10.9% but CFFO only 2.1%
Expense Quality
Inventory -5.4% vs COGS 17.5%. Normal
CapEx growth 10.4% vs revenue 10.9%. Normal
Insufficient data
Gross margin 61.0%, change -2.2pp. Stable
Cash Flow Quality
CFFO/NI = 1.94. Profits backed by cash
FCF < 50% of Net Income for 3 years
Accruals ratio = -2.9%. Low accruals
Cash $0.4B covers only 1% of debt $49.5B
Balance Sheet Health
Goodwill+Intangibles $0.1B = 0% of equity. Manageable
Debt/EBITDA = 5.4x (>4x). Financial stress
Other assets 13.7% vs revenue 10.9%. Normal
Write-offs normal
Acquisition Risk
FCF after acquisitions negative for 3 years
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
Insufficient data
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08